How to Get the Best Manufactured Home Loans in Washington State

Buying a manufactured home in Washington can be an affordable way to achieve homeownership. With the right financing you can get a quality manufactured home without breaking the bank. In this article I’ll explain everything you need to know about getting a manufactured home loan in Washington, from loan types and requirements to interest rates and tips for securing the best terms.

What is a Manufactured Home?

First, let’s clarify what constitutes a manufactured home. Manufactured homes were previously known as mobile homes. They are built in a factory setting in accordance with the Housing and Urban Development (HUD) building code standards. This makes them different from modular or site-built homes.

Once constructed, manufactured homes are transported to the home site in one or more sections and installed on a permanent foundation. They can be placed in manufactured home communities, on private land, or even in some traditional neighborhood developments.

Manufactured homes come in a variety of widths, from single-wides to double-wides or triple-wides. They provide a budget-friendly homeownership option that still allows for plenty of customization in floor plans, amenities, and finishes.

Manufactured Home Loan Options in Washington

When it comes to financing a manufactured home in Washington, you have a few options:

• Chattel Loans – Also known as home-only loans. The home itself serves as collateral for the loan not the land it sits on.

• Real Estate Loans – The home and land are used as collateral. This allows for lower rates and better terms.

• FHA Loans – Insured by the Federal Housing Administration They require lower down payments and credit scores

• VA Loans – Offered to eligible veterans and service members. No down payment is required.

• USDA Loans – For low to moderate income buyers in rural areas. These offer subsidized rates and 100% financing.

Within each loan type there are fixed and adjustable rate mortgages available too. Your credit, debt-to-income ratio, down payment amount, and the appraised value of the home will determine which loan programs you qualify for.

Manufactured Home Loan Requirements in Washington

To qualify for financing on a manufactured home in Washington, here are some of the typical requirements:

• Down payment – Typically 10-20% of the purchase price is required. FHA loans can be 3.5% down and USDA loans are 100% financing.

• Credit score – Minimum scores range from 640 to 700 on most conventional and government loans. The higher your score, the better the terms you can qualify for.

• Debt-to-income ratio – Your total monthly debt divided by gross monthly income. Most lenders look for this ratio to be below 50%.

• Appraisal – The home must be appraised to confirm its value supports the loan amount.

• Age of home – Varies by lender, but many will finance newer or newer reconditioned homes. Some allow pre-1976 homes.

• Foundation – Permanent foundation and tie-downs required. But no engineering certifications needed.

• Home inspection – Recommended to identify any repairs needed.

• Insurance – Required to protect the collateral securing the loan.

As long as you meet these requirements, you should be able to qualify for a manufactured home loan in Washington. Be sure to shop around with multiple lenders and get pre-qualified to compare your options.

Interest Rates on Washington Manufactured Home Loans

Interest rates on manufactured home loans in Washington can vary quite a bit from lender to lender. They also fluctuate frequently based on market conditions.

That said, here are some general guidelines on current interest rates as of November 2022:

• Chattel Loans – 7-10% Interest
• Conventional Loans – 5-7% Interest
• FHA Loans – 3.5-5% Interest
• USDA Loans – 2-3.5% Interest

Government-backed loans like FHA and USDA tend to offer the most competitive interest rates right now. The lowest rates for conventional loans are for buyers with good credit and who are able to make a larger down payment.

Always compare loan estimates from multiple lenders. Ask if they offer rate locks to secure an interest rate for 30-60 days while your loan is processed. This protects you from any increases.

Tips for Getting the Best Manufactured Home Loan in Washington

Follow these tips to ensure you get the most ideal loan terms on your Washington manufactured home purchase:

• Shop lenders – Get loan estimates from banks, credit unions, and mortgage brokers. Compare all options.

• Improve your credit – The higher your score, the lower the rate. Pay down debts and dispute any errors on your credit reports.

• Save for a down payment – Putting 10-20% down gets you the best rates and financing.

• Lower your debt – Reduce monthly obligations like credit cards and auto loans. This improves your debt-to-income ratio.

• Pick a newer home – Newer manufactured homes qualify for better loan terms. Or have an older home recertified.

• Get pre-qualified – This shows sellers you are a serious buyer and gets the loan process started.

• Lock your rate – Protect yourself from rate hikes during the loan processing period.

• Watch closing costs – Origination fees, escrow deposits, and other closing costs should be reasonable.

• Compare quotes – Having loan estimates from multiple lenders gives you leverage to negotiate the best deal.

Taking the time to improve your credit, save for a down payment, and compare all of your financing options will help you qualify for the most competitive manufactured home loan in Washington. Be sure to connect with lenders that specialize in this type of home financing.

Top Manufactured Home Lenders in Washington

Here are a few of the top manufactured home lenders serving the Washington market that prospective buyers should consider contacting:

• 1st Security Bank – Offers home-only and land/home loans on manufactured housing. Has over 90 years combined industry experience on staff. Provides quick approvals and closing.

• Sound Community Bank – Locally owned Washington lender that offers manufactured home mortgages. No junk fees and customized financing options. Free pre-qualification available.

• Academy Mortgage – National lender with a manufactured housing department that handles FHA, VA, and USDA loans on manufactured homes.

• Ruoff Home Mortgage – One of the largest lenders nationwide for manufactured home financing. Offers a wide range of conventional and government loan programs.

• Consumer Mortgage and Finance – Specializes in financing manufactured homes nationwide since 1963. Offers traditional mortgages and specialty programs.

This list gives you a starting point of experienced lenders to begin discussing your specific situation and manufactured home financing needs in Washington. Be sure to get multiple quotes before making your decision.

Find the Best Loan for Your Manufactured Home