The home buying experience can be an overwhelming experience that can be exhilarating, fun, stressful and exhausting. The process of securing a mortgage, successfully bidding on a home and completing the transaction can be lengthy, complex and involve seemingly endless professionals. Those professionals may include a buyer’s agent, a loan officer, a home inspector, title […]
Differences in manufactured homes and how to finance them
You may have heard of different terms to refer to homes that are not traditionally built on-site, like ‘modular’ or ‘manufactured’ homes. These homes are a good option for homeowners looking for an affordable, environmentally-friendly, and quickly-built option.
However, a modular home is different from a manufactured home. Modular homes rest on a permanent concrete foundation while manufactured homes can be moved. Unlike traditional homes, manufactured homes are not built on a permanent foundation. Instead, they are pre-built and assembled on-site, sometimes resting on blocks or a concrete foundation.
Standard manufactured homes
Standard manufactured homes come in single, double wide, and triple wide. Under Missouri law, the title to a manufactured home is held as a Certificate of Title issued by the Missouri Department of Revenue and has thirty days from the date of purchase to purchase the title and pay sales tax on the home.
Because they are not on a permanent foundation and thus not considered real property and must be converted to one before you can finance a standard manufactured home, to finance a standard manufactured home, you must meet the following requirements:
- The home must be manufactured after June 15, 1976
- Property must be fee simple, meaning you own the land
- You must provide an Affidavit of Affixture (433A or state equivalent) showing that the manufactured home has been permanently affixed to land
- The home must be transported directly from the manufacturer to the site
CrossMod™ manufactured homes
A CrossMod™ is another manufactured home option you can choose from that is a HUD-code manufactured home. CrossMod™ homes are built to higher standards and resemble traditional site-built home with features like front porches, pitched roofs, garages, or carports.
There are many options to choose from for energy efficiency and aesthetics, so you can make your manufactured home fit your lifestyle and budget. CrossMod™ homes must meet specific construction, architectural, and energy-efficient design standards.
Financing options for manufactured homes
Much like a traditionally-built home, you must consider financing when you purchase a manufactured home. At SmartMortgage, we offer financing options for your purchase of a manufactured home, including:
- Conventional loan with a 5% down payment
- FNMA MH Advantage program with 3% down
- FHA with 3.5% down
- VA with 0% down
- USDA with 0% down
If your manufactured home is on a permanent foundation, you may be eligible for a conventional or government-backed mortgage. Your SmartMortgage lender will work with you to find the best loan option for your manufactured home.