Purchasing a manufactured home offers an affordable alternative to traditional housing. However, if you are considering financing a manufactured home, learning about the age limits for loan eligibility is key. Different financing options and lenders have specific guidelines in response to the question "How old can a manufactured home be for financing?"
This article outlines key factors that influence the financing process and helps you make informed decisions when buying a manufactured home.
Financing and Age Restrictions
When applying for a loan on a manufactured home, the age of the home plays a significant role. Lenders typically have stricter guidelines for older homes, and most prefer homes built within a certain range of years. The guidelines can vary based on the type of loan and lender you are working with. For example, federal programs such as FHA, VA, and USDA loans have specific age restrictions when it comes to financing manufactured homes.
How Old Can a Manufactured Home Be for Financing?
- FHA Loans
The Federal Housing Administration (FHA) offers loans for manufactured homes. However, the home must meet certain criteria. The FHA typically will not finance homes that are more than 20 years old at the time of the loan application.
For homes older than 20 years, the lender will generally require an additional inspection and review to make sure the home meets modern standards of safety and quality. If the home was built before June 15, 1976, it may not be eligible for FHA financing, as this is when federal standards for manufactured homes were first established.
- VA and USDA Loans
The Department of Veterans Affairs (VA) and the U.S. Department of Agriculture (USDA) also offer loan programs for manufactured homes. These government-backed loans have similar restrictions to FHA loans regarding the age of the home.
In most cases, homes older than 20 years may not qualify for VA or USDA financing, though exceptions can sometimes be made if the home has been well maintained and meets other criteria. The home must also be considered real property. This means it is permanently affixed to the land and legally recognized as a structure.
- Conventional Loans for Manufactured Homes
Conventional loans are available through private lenders and tend to be more flexible than government-backed loans. However, conventional loans for manufactured homes still have age restrictions, though they can vary by lender.
Most lenders will finance homes that are up to 30 years old. Older homes may be eligible for refinancing. Nevertheless, they often require additional inspections and documentation to prove they meet current safety standards and are worth the investment.
Key Factors Beyond Age
While the age of a manufactured home is a key consideration when securing financing, other factors can influence whether you qualify for a loan. Here are some additional aspects that lenders typically review:
- Condition of the Home: Lenders often require an inspection to make sure the home is in good condition, regardless of its age. Homes that are well-maintained and structurally sound are more likely to qualify for financing, even if they are older.
- Location: The location of the manufactured home can impact its eligibility for financing. Homes located within a well-established manufactured housing community or on permanent foundations are more likely to be financed than those located on temporary or leased land.
- Type of Home: Single-wide and double-wide manufactured homes may be treated differently in terms of financing. Double-wide homes tend to have a higher resale value. They can make them more favorable for loan approval.
Cambio Communities: A Place to Call Home
Cambio Communities offers a range of manufactured housing communities where you can find affordable, well-maintained homes. Our communities are designed to offer comfortable living with easy access to nearby amenities and services. Explore our available listings for the perfect home to suit your needs.
