You really do have several options available to you right now if you want to be a homeowner but your credit is less than perfect. Even if your credit report shows slow payments, judgments, repossessions, foreclosure, or bankruptcy, purchasing a mobile home or manufactured/modular home is a fantastic choice with very attractive financing options available.
Estimated Installation Cost: NOTE This is a price guide only. Actual costs will vary depending on specific site conditions and by region
The estimated installation cost includes the following*:
Notes:
Add $10 per Sq Ft of home to this price range (if you don’t have an exact quote) if a concrete foundation (slab or crawl space) is necessary.
A skirting addition is optional if the home is on a crawl space.
If your manufacturer has not made air conditioning an option, add it.
Typical Investor funded projects
EXAMPLE # 1
LESS Buyer Down Payment (20,000)
Management fee (10% of balance) 14,000
Investor capital (70% of balance = 61% LTV) 98,000
Home Nation capital (30% of balance) 42,000
Net to Investor at Buyer’s loan closing in
approximately 90 – 120 days
(50% of Management fee) $7,000
EXAMPLE #2
Project Cost(See VA loan pre approval here) 267,000
Less Buyer down payment (1,000)
Investor capital (@70% = 63% LTV) 187,000
Home Nation capital (@30%) 80,000
Net to Investor at loan closing in
approximately 90 – 120 days
(50% of Management fee) $13,350
AFFORDABLE HOUSING INVESTMENT PROSPECTUS
Please email Invest@HomeNation. com to request a prospectus of Home Nation’s investment opportunities. Unfortunately, we can currently only offer our investments to accredited investors.
A NDA (Non Disclosure Agreement) and an AAI (Affidavit of Accredited Investor Status) form might also be required of you.
You really do have several options available to you right now if you want to be a homeowner but your credit is less than perfect. Even if your credit report shows slow payments, judgments, repossessions, foreclosure, or bankruptcy, purchasing a mobile home or manufactured/modular home is a fantastic choice with very attractive financing options available.
Five Traditional Financing Alternatives
1. Borrow money from a friend or relative. (Consider yourself lucky if you can do this).
2. Have at least 20% saved up for the down payment.
3. A seller who is willing to finance your loan for you would be ideal.
4. Take out a loan from the dealer of your mobile home, but be aware that the interest rate may be too high, increasing your monthly payments.
5. Obtain financing from a credit union, which historically has been more receptive to lending on manufactured homes and mobile homes.
FHA Home Loan: A Better Option
FHA mortgages are particularly helpful for those with poor credit who want to purchase a mobile or manufactured home. Just to be clear, you do not submit an application for a mortgage through the Federal Housing Administration. You submit an application via a financial institution, like a credit union. Making a phone call to the credit union is all it takes to become a member. Lenders are encouraged to fund FHA home loans.
– With FHA loans, a substantial 20% down payment is not required. Every day, FHA loans are approved with down payments as low as three percent. 5%.
– For mobile homes and manufactured homes, the loan’s interest rate is fixed for the duration of the loan, which is typically 20 years.
– The maximum loan amount is only $66,678 for a manufactured home.
– $92,904 is the maximum loan amount for a manufactured home and lot.
Even borrowers with credit scores below 640 might still be able to finance a home, but they should be prepared to pay higher interest rates, larger down payments, and even more to qualify.
– At Home Nation, we provide FHA loans to customers looking to purchase their first mobile home who have credit scores as low as 580, but these loans are undoubtedly difficult to find as the majority of lenders will not accept them.
Eligible Borrowers must:
1. Show proof of having enough money to pay the bare minimum down payment.
2. be able to show they have enough money to cover their other expenses, such as credit card and car loan payments, as well as the loan’s proposed monthly payments.
3. Intend to occupy the manufactured home as their principal residence.
4. Have a good location to put the manufactured home.
a. As long as the park and lease agreement adhere to FHA regulations, the house may be placed on a rental site in a manufactured home park.
b. The house could be located on a specific home site that the borrower owns or rents.
Veterans and their surviving spouses who have served in the armed forces are eligible for VA loans to purchase homes. If buyers meet the specific VA requirements, such as a Certificate of Eligibility, which considers service history, employment history, and income, they may be eligible for and receive a VA loan. Our goal at Home Nation is to make the process of buying a home as simple as possible for our veterans and their families.
Requirements for Manufactured Homes
Regarding manufactured homes and mobile homes, the FHA and VA have specific guidelines. Thankfully, Home Nation has knowledgeable personnel to guarantee that your new home satisfies all FHA and VA requirements. An Eligible Manufactured Home must:
1. Meet the Model Manufactured Home Installation Standards.
2. Carry a one-year manufacturers warranty if the unit is new.
3. be installed on a home site that satisfies regionally recognized criteria for site suitability and has access to sufficient water supply and sewage disposal facilities.
4. Furniture financing cannot be done with the proceeds of a Title I manufactured home loan, including beds, chairs, sofas, lamps, rugs, etc. ). However, wall-to-wall carpeting, built-in equipment, and appliances, are financed.
Your Annual Income
Your lender will collaborate with you to determine a reliable and stable monthly income amount that is used to calculate the loan amount and monthly payment that you can afford to make each month, regardless of whether your income is consistent month to month or varies throughout the year, comes from the same employer or from different sources, or any of these things.
Debt-to-Income Ratio
This ratio is a key factor in determining how much of a monthly housing payment you can afford after your monthly income has been calculated. Lenders figure out the minimum payments you’ll need to make on your proposed home loan and other debts, then divide that total by your income. This means that none of the lender’s partners—the FHA, the VA, or Home Nation—wants you to be saddled with a mortgage payment you can’t afford.
We want you to keep your current residence, so this payment is for your new one.
When looking to purchase their first mobile home, buyers who may not have perfect credit or a sizable down payment may find an FHA loan or a VA loan to be a very alluring option. But obtaining a brand-new mobile or manufactured home is actually closer than you might imagine. Home Nation is here for you.
FAQ
Can you buy a mobile home with a 500 credit score?
With an FHA loan, a manufactured home can be financed even with a 500 FICO score. With a low credit score, you can even lock in a fairly competitive interest rate. You can now select between an FHA loan or a chattel loan if your FICO score is 575.
Can I buy a mobile home with a 520 credit score?
To purchase a mobile home, the majority of lenders demand a minimum credit score of 580 to 620. In most cases, a credit score of 580 is required for manufactured home loans; however, you may still be eligible for financing through a special program even with a lower score, though you might have to put down more money.
What is the easiest loan to get approved for with bad credit?
Payday loans, car title loans, pawn shop loans, and personal installment loans are likely the loans that are easiest to get approved for. These are all short-term cash solutions for bad credit borrowers. Many of these options are made to assist borrowers who require quick cash in emergency situations.
What is the lowest credit score needed for a home loan?
Most mortgages require a minimum credit score of around 620. However, compared to conventional fixed-rate loans and adjustable rate mortgages (ARMs), government-backed mortgages like Federal Housing Administration (FHA) loans typically have fewer credit requirements.