How to Get the Best Manufactured Home Loans in Arizona in 2023

Buying or refinancing a manufactured or mobile home in Arizona? Finding the right financing can be tricky compared to a traditional site-built home. I learned firsthand that you need an experienced lender familiar with the unique requirements and challenges of manufactured home loans in this state.

After researching lenders and loan options for months, I bought my manufactured home last year with a loan from Teamwork Mortgage. In this guide, I’ll share the key things I discovered about getting one of the best manufactured home loans available for properties in Arizona.

Overview of Manufactured Home Loans in Arizona

Manufactured or mobile homes are factory-built residences transported and installed on land you own or rent They come in single-wide and multi-section models.

Financing works differently than site-built houses There are two main loan types

Chattel loans – The home and land are financed separately. The home is considered personal property like a vehicle. This is common when you own the home but rent the land in a community.

Conventional loans – The home and land are financed together in one mortgage, like a site-built home. This is possible when you own both the home and land.

Other key things to know:

• Older mobile homes may be difficult to finance. Look for late 1990s or newer.

• Down payment is typically higher, often 10-20%.

• Interest rates run 0.5 to 1% higher than site-built homes.

• Private lenders and brokers like Teamwork specialize in these loans.

I opted for a chattel loan through Teamwork to buy my home in a leased community. Now let’s look at how to find the best loan.

Shop with Brokers Familiar with AZ Manufactured Homes

With manufactured home loans, it’s best to work with a broker in Arizona who specializes in these properties. They have direct relationships with local lenders and know the specific requirements.

I first tried applying through a big national lender. They didn’t understand the leased land and couldn’t provide flexible options. I lost a couple months going that route.

Then I contacted Teamwork Mortgage, a highly recommended AZ broker. They walked me through the differences and loan types. Their expertise with manufactured homes was obvious from the start.

Teamwork got me an excellent loan within two weeks of applying. Their long-time manufactured home financing relationships were invaluable.

Compare Multiple Lender Options

Through their relationships, an experienced broker like Teamwork Mortgage can offer you multiple lender options to compare. Rates, fees, and qualifications will vary.

Some lenders they work with that may be a good fit include:

• Vanderbilt Mortgage – Well-known for manufactured home loans, including chattel loans. They offer both fixed and adjustable rates.

• Finance of America – Finance of America has launched a division specializing in manufactured home lending.

• New American Funding – Offers financing for manufactured homes in Arizona including FHA loans.

• CU Factory Built Lending – Specializes in loans for manufactured homes across the U.S.

Having access to quotes from multiple lenders helped me get the optimal deal. Make sure to compare all costs and fees in addition to interest rates.

Understand The Specific Requirements

When dealing with manufactured home loans, here are some of the unique qualifications and paperwork you should be prepared for:

• Down payment – Have at least 10-20% down payment ready. Some lenders may accept less, but you often need 10% or more.

• Credit score – Aim for a score of at least 650; some lenders may go down to 600. Debt-to-income ratio below 45%.

• Loan term – Loan terms typically top out at 20 years for chattel loans and 30 years for conventional.

• HUD tag – The HUD tag proves when the home was built. Lenders want homes newer than 1976.

• Engineer’s inspection – An inspection by a certified engineer may be required to confirm the structural integrity.

• Title search – A title search on your home documents ownership history.

Know The Additional Costs

Beyond your down payment, closing costs, and mortgage payments, there are some other expenses unique to manufactured home loans to budget for.

Land lease – If your community charges monthly land rent, this will be part of your housing payment. Lease terms are normally monthly or annual.

Insurance – Specialized property insurance for manufactured homes will run $100+ per month.

Tie down and skirting – If your home isn’t already tied down and skirted, these requirements could cost $2,000+ depending on permits needed.

Demo of old home – If you’re replacing an existing manufactured home, demolishing and removing it could cost around $3,000.

Utility hookups – If utilities like electric, water, sewer and gas need to be connected, expect fees of $500 and up.

Check if You Qualify for an FHA Loan

FHA loans are popular options for financing manufactured homes. If your credit and debt-to-income fit FHA guidelines, these loans offer benefits like:

• Lower down payment around 3.5%.

• More flexible credit score and debt requirements.

• Lower interest rates than conventional manufactured loans.

The drawback is that you’ll have to pay mortgage insurance (MIP) monthly with an FHA loan. Still, it’s worth checking your options to see if an FHA manufactured home loan may work for your financial situation.

Don’t Forget Refinancing Options

Once you’ve purchased your manufactured home, there are opportunities to refinance down the road if interest rates drop or your credit improves. Many homeowners have saved hundreds per month by refinancing.

The professionals at Teamwork Mortgage can also guide you through refinancing your manufactured home loan when the time is right. Having an experienced broker on your side is key for low rates and smooth approval.

Find Your Dream Home with the Right Financing

Don’t let financing challenges keep you from buying the quality, affordable manufactured home you want. Despite potential hurdles, securing a manufactured home loan in Arizona is possible with an experienced broker guiding you.

I’m thankful I connected with the experts at Teamwork Mortgage for my loan. Now I’m happily settled into my new home and community. With the right broker and loan for your situation, you can be too!