HUD-standard Manufactured Homes Have FHA Refinancing Option

Manufactured home owners till now had to cope with high interest rates when it came to refinancing their loans. Considering that manufactured home loans have to be paid off in a very short period of time, home owners start looking around for refinancing very quickly.

FHA has pretty strict guidelines when it comes to manufactured home loan financing and refinancing but it is possible now for a manufactured home owner to get an FHA loan at the low mortgage rates prevalent. Like any other FHA loan, this one too comes with the usual advantages of building in the option for streamlining refinances later in case interest rates were to go up. As long as the manufactured home in question meets the requirements specified, the loan is like any other FHA loan.

What you would need to do if you are looking at an FHA loan to refinance is to first go look at the side of your manufactured home. Do you see an HUD tag there? The house has to be built according to the HUD standards to qualify and your tag should be on the house. If it isn’t, you will have to go find out to see if you do have a tag number or not. The next step is the foundation. You will have to check if this too was laid according to the detailed guidelines issued by HUD. This needs a structural engineer to tell you whether it was or not and this cost could go in with your new loan. All clear? Well, congratulations! You just qualified to being considered for the loan.

So if you do have problems with a short term balloon loan at your bank and you are looking for refinancing, FHA might be the way to go. You might not qualify for a 30 year fixed rate mortgage if the value of your property does not meet the minimum requirement norms but they could just have a scheme for you.

Entry Filed under: mortgage programs