Manufactured Home Refinance

Manufactured home refinance rates tend to follow the pattern of regular mortgage rates because they have to be competitive with lenders that are encouraging traditional homeownership. In the past, in order to finance a modular house, there was a 20% down payment needed and the loan life was 10-20 years. Unlike traditional houses and land, manufactured ones are only financed for the home itself. Manufactured home refinance rates can be obtained by those seriously considering refinancing their newer model modular one. Most finance companies will not refinance a house that is not worth $35k or more.

Modular houses tend to decrease in value over time, unlike real property. Most manufactured homes are on a site in a park community or on leased property. Land appreciates, homes do not. The financing for a manufactured home is called a Chattel mortgage, or personal property mortgage. These types of plans should include an appraisal of the home, and should be done fairly early in the loan payment life. These companies have strict guidelines when it comes to applicant qualifications. These guidelines are to protect not only the lender, but the applicant as well.

The applicant seeking a manufactured home refinance loan should have good credit (660 credit score or above) with at least 3 open active charge accounts. They must have established credit for at least 24 months. They must provide income verification with employment that has been consistent. They must have made at least 3 monthly loan payments to their original chattel mortgage lender. Two years of tax returns are recommended. There must be no repossessions, charge offs, or major collection activity on the applicants credit report. The applicant must not have filed for bankruptcy in the last five years, and their debt to income ratio must allow for the payments of a new loan.

The house to be considered for the much needed loan must not be more than 25 years old. The home must have been built to HUD standards. Manufactured home refinance loans will not be given for less than $20,000, so the house must be worth at least $35,000. In order to refinance to consolidate debt, the model must not be more than 15 years old. The home should be on a lot in a community or park or on leased land. It must be at least 750 square feet, set at the site, livable, and skirted. Qualifications vary depending on the lending institution. It is advisable to heed the advice of 2 Chronicles 18:4, "Enquire, I pray thee, at the word of the LORD to day" and then to speak with a local lending institution for a complete list of qualification requirements.



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