*Estimated payments above do not include amounts for taxes and insurance payments. Your payments may be greater. APR equals Annual Percentage Rate and assumes a purchase price of $200,000 with a 25% down payment and zero (0) points. Your rate and APR may be higher, all loans priced individually. Rates are subject to change at any time. 75% LTV available to those who qualify. For 75% LTV or non-conforming rates, contact the Mortgage Department.
Fixed Rate Mortgage loans may be subject to risk-based pricing adjustments known as Loan Level Pricing Adjustments (LLPA) based on the most recent Fannie Mae LLPA chart.
Fixed Rate Mortgage loans not sold to the secondary market (portfolio loans) may be subject to internal Loan Level Pricing Adjustments (LLPA).
LLPA adjustments consider items such as loan to value, credit score, loan purpose, term and other factors and may cause your rate to be higher.
As you make plans to pursue your goals, these calculators can help you get your finances in order.
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Buying a manufactured home in California can be an affordable way to achieve homeownership. But to get the best deal, you need to understand how manufactured home loan rates work.
I’ve purchased two manufactured homes in California over the past 15 years Based on my personal experience, I want to provide an in-depth look at current mortgage rates for manufactured homes and how to get the lowest rate possible
Overview of Manufactured Home Loans in California
Let’s start with a quick primer on what constitutes a manufactured home and how they are financed in the Golden State:
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Manufactured homes are factory-built residences that arrive in sections and are joined together on site. They must meet certain construction standards set by the U.S. Department of Housing and Urban Development (HUD).
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These differ from mobile homes, which are built to lower standards and are still considered personal property in California. You can’t get a traditional mortgage loan for a mobile home.
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To qualify for favorable loan terms, the manufactured home must be considered real estate and be placed on land that you own.
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Special mortgages exist for financing manufactured homes, including conventional loans, FHA, VA, and USDA options Rates are generally 05 to 1% higher than site-built home loans.
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You’ll need a down payment of at least 3% to 5%. Requirements vary by lender and loan type. Your credit score and debt-to-income ratio will also be checked.
Now let’s look at current rates and how to get the best deal.
Current Manufactured Home Mortgage Rates in California
As of January 2023, average interest rates for manufactured home loans in California are:
- Conventional loans: 6.5% to 7%
- FHA loans: 6% to 6.5%
- VA loans: 6% to 6.5%
- USDA loans: 5.5% to 6%
Rates for conventional mortgages are higher because they are considered riskier by lenders. Government-backed loans offer lower rates thanks to guarantees and other incentives.
Within each loan type, your personal creditworthiness determines where your rate will fall in that range. The better your credit score and financial profile, the lower your rate.
7 Tips to Get the Lowest Manufactured Home Loan Rate
While rates are largely based on broader economic factors, you still have control over getting the most competitive rate possible. Here are my top 7 tips for minimizing your interest rate:
1. Have a down payment of at least 10% to 20%
The more you can put down, the less risky you are to lenders. Aim for 20% if possible.
2. Get your credit score above 720
Take time to improve your credit before applying. Pay down balances and correct errors on your reports.
3. Lower your debt-to-income ratio
Lenders want to see your total monthly debt payments capped at 43% of gross monthly income.
4. Shop around with multiple lenders
I compared quotes from 5 different lenders on my last purchase. Rates varied by 0.5%.
5. Ask about discount programs
Some lenders offer lower rates for first-time buyers, veterans, or new construction.
6. Opt for a shorter loan term
15-year loans often have lower rates than 30-year ones. But payments are higher.
7. Consider an adjustable-rate mortgage (ARM)
ARMs start with very low teaser rates, but the rate changes over time. Know the risks.
Finding the Best Manufactured Home Lender in California
In addition to shopping for the lowest rate, you also want to find a lender that specializes in manufactured home loans. Here are signs to look for:
- Offers conventional, FHA, VA, and USDA manufactured home loans
- Has loan officers experienced with manufactured housing
- Can handle loans for homes in mobile home parks
- Has a track record of closing loans quickly
- Charges reasonable fees and closing costs
As California’s largest bank specializing in manufactured home lending, Community West Bank checks all these boxes. I’d highly recommend getting a quote from them. Their loan officers really know the intricacies of manufactured home mortgages and can find you the perfect loan for your situation.
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Financing a Manufactured Home: What you need to know
FAQ
Can you get a mortgage on a manufactured home in California?
Who is the best lender for manufactured homes?
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Company
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Starting Interest Rate
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Loan Terms (range)
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Manufactured Nationwide Best Overall
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Varies
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15, 20, or 30 years
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ManufacturedHome.Loan Best for Good Credit
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Varies
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Varies
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21st Mortgage Corporation Best for Bad Credit
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Varies
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Varies
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eLend Best for Low Down Payment
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Varies
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Varies
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Why are mortgage rates higher for manufactured homes?
What is the cost of a manufactured home in California?
How do I get a mobile home loan in California?
With the right loan, you can enjoy the comforts of your mobile or manufactured home with peace of mind. You can contact us at 888-855-1423 or apply online. Looking for mobile home loan in California? Billcutter provides flexible financing options for purchasing or refinancing mobile homes.
Can you get a loan for a mobile home?
Financing a mobile or manufactured home may be a little different from financing a house. That’s because most lenders don’t consider these homes eligible for most types of mortgage loans. However, some lenders will give you a loan for a manufactured home if it meets their specific requirements and rests on a permanent foundation.
Can you buy a mobile home with a conventional mortgage?
While not every lender offers these types of loans, you do have a range of options to pick from. Some manufactured homes can be purchased with conventional mortgages, and government-backed loans like FHA, USDA, and VA loans are also on the table when you’re thinking about financing a mobile home.
What is a manufactured home mortgage?
They may have higher interest rates, shorter loan terms, and different down payment and credit score requirements. Manufactured home mortgages can be used to finance both the purchase of the manufactured home itself and the land it will be placed on, or just the home only if it will be located in a rented lot or mobile home park.
Can you get a mortgage on a manufactured home?
Yes, you can get a mortgage on a manufactured home. There are several options, including FHA loans, VA loans, and certain conventional loans. The home usually needs to meet specific requirements, such as being on a permanent foundation and classified as real property. Can you get a reverse mortgage on a manufactured home?
How is a mobile home loan different from a regular mortgage?
A mobile home loan is different from a regular mortgage because it typically refers to financing for several types of homes largely assembled in factories. Mobile homes aren’t the same as traditional “stick-built” or “site-built” homes, which are built directly on top of their permanent foundation.