Can You Finance a Single Wide Manufactured Home on Your Own?

It is no secret that manufactured homes have been the most affordable option to own a home in the United States over the last decade. But, unlike traditional site-built homes, getting financing for these types of properties can be difficult if you do not have an established credit history or a large down payment saved up. 

However, as we will explain below, there are definitely options if you are willing to do some research and put in some legwork.

Here’s how to finance a single wide manufactured home in Alex City on your own:

What is a single-wide manufactured home?

A single-wide manufactured home is a type of prefabricated housing typically composed of one large section. These homes are usually built in a factory and then transported to their final destination, where they are assembled on-site. 

Single-wide manufactured homes are a popular choice for first-time homebuyers, retirees, and people who want to downsize. Because they are usually more affordable than traditional stick-built homes, single wides are a great way to get into homeownership. But can you really finance one of these homes on your own?

How to Finance a Single Wide Manufactured Home?

If you are thinking about financing a single-wide manufactured home in Alex City, there are a few things you should know. First, while it is possible to finance these homes on your own, it can be challenging to find lenders who are willing to do so. This is because many lenders consider manufactured homes to be high-risk investments. As such, you may need to put down a larger down payment than you would for a traditional home loan. Additionally, you may need to pay a higher interest rate.

Here are other financing options you can consider: 

Freddie Mac

Manufactured homes are ineligible for Fannie Mae financing. However, they can get financed through Freddie Mac. But there are some conditions that manufactured homes should fulfill to be eligible for Freddie Mac. 

You can finance a single-wide manufactured home through Freddie Mac, as long as the house is located in a Planned Unit Development (PUD). PUDs are generally age-restricted communities that have a homeowners association. The home must also have a Department of Housing and Urban Development (HUD) Certification Label or the HUD Data Plate. The home must also be built after June 15, 1976, and be permanently affixed to a foundation that meets local building code requirements.

FHA 

You may also be able to finance your manufactured home in Alex City through the Federal Housing Administration (FHA). The FHA offers loan programs with lower down payments and more flexible credit requirements than traditional lenders, making it a good option for first-time homebuyers or those with less-than-perfect credit. 

To qualify for an FHA loan, your home must be built after June 15, 1976, and be permanently affixed to a foundation that meets local building code requirements. You will also need to provide the FHA proof of your income, employment history, and other financial information.

USDA

The United States Department of Agriculture (USDA) offers many programs to help low- and moderate-income households finance a single-wide manufactured home. 

To qualify, the home must be at least 12 feet wide and have a minimum of 400 square feet of living space. Additionally, the home must be located in a USDA-designated area and be your primary residence. If you meet these qualifications, you may be able to finance your home through the USDA’s Single Family Housing Direct Loan program or the Single Family Housing Guaranteed Loan program. 

Conclusion

Buying a home is something many people dream of doing, and if you are ready to take the plunge, financing an affordable manufactured home can be an excellent option. However, if you are not sure that this particular living situation is right for you, it is important to learn all you can about the different ways you can buy your manufactured home and the pros and cons of each one before making your decision. If you have decided to finance your own single-wide manufactured home on your own, we hope this article will help you understand what that entails and what your future might look like under this scenario.

Do you want to buy a manufactured home in Alex City or the surrounding areas as a single person? Call Jaco Sales Alex City at 256-500-4305 or fill out this form to speak with one of our sales associates and find the best financing option for your needs.