Loans for Older Manufactured homes (commonly know as Trailers)
Manufactured homes are commonplace in North Carolina, as well as around the country. As homes become more and more expensive, a manufactured home can offer a family a way to own their own home. Manufactured homes are not the same as 'modular' homes - read more about the differences here.
- Manufactured homes most often depreciate similar to cars, rather than modular homes or stick built homes
- They must be on a qualifying foundation to qualify for a mortgage
- It can be more difficult to get a loan on a mobile home built before 1976.
If you are looking at an older mobile, you may be able to use a personal loan, or of course, cash! Some credit unions can also be helpful.
HUD tags post 1976 On June 15th, 1976 a new rule was brought in by HUD - and while HUD is the agency with the requirement, most lenders follow suit. The rule was designed to make sure that manufacturers comply with safety standards, and all mobile homes after this date are required to have HUD tags to meet most lending guidelines.
Before this rule came into effect, some mobile homes had electrical issues that caused fires and other safety issues.
HUD does not inspect homes. Homes built prior to June 15, 1976, even with modifications, do not meet the HUD standards and cannot be accepted as compliant with the HUD Code. As the homeowner, you may find a licensed engineer willing to inspect your home for compliance with your state’s housing code. FHA does not insure mortgages on manufactured homes built prior to June 15, 1976. Most other mortgage insurance firms follow FHA’s policy.