Does Rocket Mortgage Offer Mobile Home Loans? A Detailed Guide

Mobile and manufactured homes can be an affordable way for many folks to achieve homeownership With average prices ranging from $60,000 to $100,000, these factory-built homes cost significantly less than site-built houses But not everyone has enough cash on hand to pay for a mobile or manufactured home out of pocket. This is where financing comes in.

If you’re wondering, “Does Rocket Mortgage offer mobile home loans?” – the answer is yes.with a few caveats. Rocket Mortgage provides financing for manufactured homes on permanent foundations through its conventional loan programs. However, the company does not currently offer mortgages for true mobile homes (those built before June 15, 1976) or manufactured homes that are not permanently affixed to land owned by the homeowner.

As the nation’s largest mortgage lender, Rocket Mortgage wants to help make homeownership attainable for more Americans. By financing manufactured homes on foundations, the company is providing an affordable path to owning real estate. But mobile/manufactured housing has some unique aspects that require non-traditional lending sources in many cases.

In this comprehensive guide, we’ll explain the key differences between mobile homes, manufactured homes and modular homes We’ll also walk through the types of loans available for financing manufactured housing and Rocket Mortgage’s specific offerings in this niche mortgage market Let’s get started!

Mobile Homes vs. Manufactured Homes: What’s the Difference?

First things first – what exactly is the difference between a mobile home and a manufactured home? These terms are sometimes used interchangeably, but there are some important distinctions:

• Mobile homes were built before June 15, 1976, when the U.S. Department of Housing and Urban Development (HUD) implemented new construction and safety standards under the Manufactured Home Construction and Safety Standards Act. Mobile homes were frequently designed to be movable and are not required to meet HUD standards.

• Manufactured homes are those built after June 1976 that were required to adhere to HUD construction and safety codes. While manufactured homes are still factory-built and delivered in sections, they are not designed for long-distance movement.

Put simply, today’s manufactured houses are the successors of traditional mobile homes. The key difference is adherence to modern building codes and enhanced durability.

How About Modular Homes?

Modular homes are sometimes confused with manufactured homes, but there are notable differences. While both are prefabricated in a factory, modular homes must meet local building codes rather than the HUD codes for manufactured housing. Modulars are transported to the site in modules but installed on a permanent foundation, making them essentially the same as “stick built” houses.

Loans for Mobile/Manufactured Housing

When it comes to financing, mobile and manufactured houses are generally not treated the same as traditional site-built homes. Most standard mortgages do not apply to factory-built movable dwellings that are not affixed to a permanent foundation on land owned by the homeowner. However, there are specialized loan programs for those who want to buy a mobile or manufactured home:

FHA Title I & Title II Loans

The Federal Housing Administration (FHA) provides two different types of loans for manufactured housing:

• Title I loans can only be used to purchase the home itself, not the land. The home must be installed at an approved rental community.

• Title II loans allow buyers to purchase both the manufactured home and the land parcel in one real estate transaction. However, the home must be attached to a permanent foundation.

VA & USDA Loans

Qualified veterans and service members may be able to use their VA home loan benefit to buy a manufactured home and land. The U.S. Department of Agriculture also offers home loans for moderate income buyers in rural areas, which can apply to manufactured housing.

Conventional Loans

Fannie Mae and Freddie Mac have conventional loan programs for manufactured homes that meet certain requirements. For instance, the home must be built after 1976 and converted to real estate by being permanently affixed to owned land. Rocket Mortgage provides this type of conventional financing for qualifying manufactured houses.

Chattel Loans

Also known as “personal property loans,” chattel loans allow buyers to purchase a manufactured or mobile home without attaching it to property they own. The home itself serves as collateral for the loan. However, loan terms are usually shorter and interest rates higher.

Personal Loans

Some lenders offer personal installment loans that buyers can use as financing for a mobile or manufactured home, without the strict requirements of mortgage programs. However, interest rates tend to be much higher with a personal loan.

Rocket Mortgage’s Offerings for Manufactured Home Loans

Now that we’ve reviewed the various types of loans available, let’s specifically look at Rocket Mortgage’s offerings for financing a manufactured dwelling:

• Conventional mortgages – Rocket Mortgage provides conventional conforming loans for manufactured houses that meet all requirements to be classified as real estate. This includes being permanently affixed to land legally owned by the borrower. Their manufactured housing loan programs adhere to Fannie Mae and Freddie Mac guidelines.

• FHA, VA or USDA loans – Rocket Mortgage can arrange FHA, VA or USDA loans for buyers who qualify for those particular government-backed programs. Their team handles all the necessary steps and paperwork.

• Personal loans – Through their Rocket Loans brand, borrowers can apply for a personal installment loan up to $45,000. This provides flexible financing that can be used for a manufactured home purchase (or other needs). Of course, interest rates are higher than a mortgage.

• No loans for “true” mobile homes – Unfortunately, Rocket Mortgage does not currently offer loan programs for mobile homes built before 1976. Their lending criteria requires the home to be classified as real property, which true mobile homes are not.

Tips for Financing a Mobile/Manufactured Home

If you’re considering buying a mobile or manufactured house, keep these tips in mind when it comes to financing:

• Check whether the home meets HUD standards if built after 1976. This will qualify it as a “manufactured home” rather than a “mobile home.”

• Look for land that can accommodate a manufactured home and allows you to affix the property permanently to the foundation.

• Understand the difference between loans for just the home (chattel) and loans for both the home and land (mortgage).

• Comparison shop lenders that specialize in manufactured housing loans and know their specific requirements.

• Get pre-qualified or pre-approved so you know what loan programs you qualify for.

• Be prepared to make a substantial down payment as required by most manufactured home loan programs.

While it can take some extra research, owning a mobile or manufactured home is an affordable path to homeownership for many buyers. With proper financing from lenders like Rocket Mortgage who understand this market, you can make your housing dreams a reality.

Frequently Asked Questions about Mobile Home Loans

If you’re wondering if you can get a mortgage loan for a mobile or manufactured home, here are answers to some common questions:

Can I get a traditional 30-year mortgage for a mobile home?

Not in most cases. Traditional mortgages are for site-built homes on owned land. Mobile homes and manufactured houses have specialized loan programs. However, if a manufactured home is properly affixed to a foundation on your land, some lenders may provide traditional mortgage financing.

What are the typical down payment requirements?

Down payment requirements vary by loan type, but tend to be higher than site-built houses. FHA loans can be 3.5-10% down. Conventional manufactured housing loans often require at least 5-10% down. VA and USDA loans sometimes offer zero down options.

What credit score do I need?

Each loan program has minimum credit score requirements. In general, you will need a score of at least 640 for an FHA loan, 660-680 for a conventional loan, and d620-640 for a VA loan. The higher your credit score, the better your interest rate will be.

Can I get a 15 or 30-year loan term?

Loan terms for manufactured houses depend on the loan type. Chattel loans typically have shorter terms of 5-20 years. Mortgage loans can offer longer 15 or 30-year options if the home is affixed to land you own.

Who offers the best rates on mobile home loans?

Specialized manufactured home lenders usually offer the lowest rates. Compare multiple lenders to find the best rates for your specific financial situation. Government-backed loans like FHA, VA and USDA often have competitive interest rates as well.

What should I watch out for with mobile home financing?

Be wary of lenders advertising “no credit check” or “instant approval.” Make sure loans terms are clearly explained and there are no hidden fees. Also confirm that the loan program matches your home type – chattel for just the mobile unit