What Is a Manufactured Home Loan?

Are you thinking about buying a manufactured home in Arkansas? With their growing popularity for affordability and flexibility, manufactured homes are a great option for many buyers. If you plan to take out a loan for your purchase, it’s important to understand your manufactured home loan options so that you’re prepared and know how to get a loan for a manufactured home. Luckily, Arkansas Federal Mortgage can help you navigate the process. 

What Is the Difference Between a Manufactured Home and Mobile Home?  

It’s easy to mix up the terms “manufactured homes” and “mobile homes,” but they actually mean something different. The term mobile home refers to homes built in factories and transported to their locations before June 15, 1976, that don’t meet the newer safety standards.   

On the other hand, manufactured homes built after June 15, 1976, must adhere to certain safety regulations defined by HUD (U.S. Department of Housing and Urban Development) and must remain in place once set up, providing a more stable living environment.  

How to Qualify for a Manufactured Home Loan  

When you are interested in financing for a manufactured home, it’s important to  explore loan options that are designed specifically for manufactured homes. To help make the process smoother, here are some things to consider before you apply for a loan for a manufactured home:  

• Check Your Credit Score: A solid score and a good credit history can help you get a better interest rate and terms on your loan. So, if you haven’t checked your credit report recently, now’s the time. Plus, as a member of Arkansas Federal, you can access your credit score anytime for free through Credit IQ, found within Digital Banking.  

• Know If You’re Buying Land: Are you planning to purchase land for your manufactured home? If so, you’ll need to factor that into your finances. The good news is that Arkansas Federal offers excellent options for land loans, and you can even combine both purchases into a single loan for added convenience.  

• Figure Out the Type of Manufactured Home You Want: There are various types and sizes of manufactured homes, and knowing what you want can help you determine the best loan options for you.  

• Save for a Down Payment: Most lenders, including Arkansas Federal, will require a down payment, so it’s smart to start saving. Having that cash ready can make a big difference in your loan application.   

Types of Manufactured Home Loans  

Like a home mortgage, you have several different types of loans to help with manufactured home financing, including:   

• FHA: One popular financing option is an FHA manufactured home loan, which is backed by the Federal Housing Administration (FHA).  

• Conventional Loans: If you’re looking for a more traditional financing option, conventional loan programs can make homeownership more accessible, especially for buyers of manufactured homes that meet certain requirements. For most conventional loans, a “manufactured home” must be at least 400 square feet, at least 12 feet wide, built to the HUD Code for manufactured housing, installed on a permanent foundation, and titled as real estate. For more information on eligibility and to see if you qualify, it’s best to work with your lender. 

• VA Loans: For military personnel, VA Loans provide excellent benefits, such as 0% down payments, competitive interest rates, and no required private mortgage insurance.  

Manufactured Home Loans with Arkansas Federal   

Ready to get started? You’re in the right place. When you finance a manufactured home loan with Arkansas Federal, you’ll enjoy: 

• Low Down Payments: Enjoy down payment options as low as 0% for a VA loan or as low as 5% for a conventional loan, making financing more accessible for Arkansans.  

• No Application Fee: There’s no cost to get pre-qualified, and the application process is easy.  

• Up-to-Date Loan Rates: Explore our mortgage rates anytime on our website, and you can lock in your rate for up to 90 days!Once your loan is approved, your rate can be locked up to 90 days.

• Home Loan Calculator: Use our handy calculator to estimate your monthly payments easily.  

Apply For a Manufactured Home Loan Today  

There’s no cost to get pre-qualified, and Arkansas Federal Mortgage can guide you through the entire process with various financing options available, including FHA, conventional, and VA loans. If you have questions about which type of manufactured home loan is right for you, our team is ready to assist you.