April 3, 2023
Financing Manufactured Homes
By: Kali Kraeger
Country Living Loans from Farm Credit East is able to finance several types of non-conforming real estate that traditional financial institutions can’t, including new construction, vacant land and farms.
We often get questions about manufactured homes as well. To understand our ability to finance manufactured homes, first we need to set some background.
What is a manufactured home?
Manufactured homes, formally known as mobile homes, are homes built to the U.S. Department of Housing and Urban Development’s (HUD) Manufactured Home Construction and Safety Standards and display a red certification label on the exterior of each transportable section. Manufactured homes are built in the controlled environment of a manufacturing plant and are transported in one or more sections on a permanent chassis.
Types of manufactured homes
The two most common types of manufactured homes are single-wides and double-wides, but there are several architectural styles and sizes within each of these categories.
Single-wide manufactured homes are typically easier to transport and can fit on a single semi-trailer, making them more affordable to relocate.
Double-wide manufactured homes have an average width two times the size of most single-wide models. Additionally, these homes are shipped on two separate trailers and assembled on-site, so they can take longer to complete.
A much less common type of manufactured home is the triple-wide, which has three separate sections that are joined together for a larger, more spacious home.
Manufactured versus modular home
Like manufactured homes, modular homes are constructed in a factory and transported to a lot. However, modular homes are more similar to traditional, onsite-built homes in that their construction must comply with local building codes and standards in the area where the home will be placed, rather than complying with the HUD Code. This is why modular homes tend to look more like onsite-built homes than a manufactured home.
Another big difference between modular and manufactured homes is movability. Modular homes are not designed to be moved once they have been placed on a lot. However, manufactured homes can be moved (although, not always easily).
What is a manufactured home park (aka mobile home or trailer park)?
A manufactured home park is a tract of land in which lots are rented for the placement of manufactured homes. Typically, the renter owns the manufactured home and pays a monthly lot rental fee.
Are manufactured homes considered real estate?
It depends on the state. For example, in New York, manufactured homes are not considered real estate and instead classified as personal property. However, in Texas, manufactured homes can be converted from personal property to real estate if the manufactured home is affixed to land owned by the manufactured homeowner.
So, does Country Living Loans finance manufactured homes?
It depends. Country Living can finance the purchase of real estate that has a manufactured home on it or finance the purchase and placement of a manufactured home on real estate that the borrower already owns. However, Country Living Loans cannot finance the purchase or placement of a manufactured home located on real estate that is not owned by the borrower. Additionally, the loan term is typically limited to 15 years.
If you have questions about whether Country Living Loans can finance your manufactured home or other property, contact us today!
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