Top 5 False Statements made by Manufactured Home Loans

5) Mobile Homes built before 1976 cannot be refinanced
The HUD Code, instituted in 1976, changed the standards of safety and the construction procedures for mobile and mobile homes. As such, homes built prior to 1976 were not subject to the HUD Code and are regarded by manufactured home investors as a higher risk loan for a defect of a minimum code of construction. Due to this condition, investors will still provide financing and refinancing for pre-HUD manufactured and mobile home loans, yet at a slightly higher rate than their post-HUD counterparts.

4) You can acquire a co-signer if you have trouble qualifying
Contrary to popular belief, manufactured homes are not cars and cannot be financed like them. The loan contract regards the signers as "borrower" and "co-borrower(s)". Also, it is inferred, when a manufactured home loan contract is executed by the borrower and co-borrower(s), that they are agreeing to live in the home as their primary residence. Making a false statement such as this constitutes loan fraud and is grounds for federal prosecution.

3) 100% Financing is available to purchase a mobile home
There are NO 100% (or "zero down payment") financing programs available for any mobile or mobile home loans. Do not be fooled! Many loan brokers will try to accomplish this type of mobile home loan, fraudulently, claiming the home to be a stick-built condo. Be sure not to accuse yourself in this kind of scheme by verifying that your loan broker truly understands and has a wealth of experience in dealing with mobile and manufactured home loans.

2) Mobile Home Loans are not conventional loans
It is a common error to classify manufactured or mobile home loans as not being conventional loans. A conventional loan is any loan that is not insured by the FHA or guaranteed by the VA or Farmers Home Administration. There are FHA and VA loans available on mobile or manufactured homes and they carry many stipulations and restrictions with them; however, a mobile or mobile home loan through a lending institution such as a bank or lend union is absolutely a conventional loan.

1) Mobile Homes must be attached to a permanent foundation to get financing
This false statement is the telltale sign of a loan broker who truly does not know anything about mobile or manufactured home finance. Permanent foundations have NO bearing on the financing of a mobile or manufactured home whatsoever, and usually it's just an justification for the broker or institution to avoid making (what is perceived as) a higher risk loan for your home.

CAMHF is a licensed California mobile home loan expert. They have helped hundreds of families in California get a mobile home refinance or mobile home mortgage. Our manufactured home financing options are second to none.