With the influx of the “skoolie,” tiny house, and RV trend, manufactured homes are starting to get all eyes on them, too. Some people cannot afford the manufactured home outright and need to look into some sort of financing. Before you decide to take the leap, we would suggest you take a look at the regulations where you live. The manufactured home may need to be converted from being personal property to being real property so you can obtain a mortgage. If you want to get a mortgage on a manufactured home, you need to treat it just like a regular home – in the sense of having to pay property taxes, etc. There are other requirements that may play a part, too. For example, the type, age, and location of the manufactured home.
Something else to keep in mind is that there is a difference between a mobile, modular, and manufactured home. It can be confusing to some people. But if you want to have a mortgage on it, it is very important to know the difference. A manufactured home is a home that is built on an off-site location and then permanently installed at your location of choice. Your location of choice can be piece of property that is owned by the buyer. This would make your manufactured home eligible for financing. If you put the home on a leased lot, the home would merely be personal property. If it is considered personal property, it would not be eligible for a mortgage.
There are a handful of other requirements to finance a manufactured home. A very important requirement is that all building standards and rules are up to code. The home must also be build after June 15, 1976 and not have any axles, wheels, or hitches on it. Depending where you live, there is usually a minimum size of the home. You would have to check with the local building department to find out what is acceptable.
If you are seriously considering the manufactured home route, we highly recommend you speaking with your local building department and other authorities in your area if you are looking to finance.