How can I get a loan to buy a manufactured home? Part 2: Owner Financing, VA Loans, Freddie Mac or Fannie Mae
If you are buying a manufactured home, your financing options are limited. Not every lender wants to extend credit to buy a trailer or mobile home. The same thing applies to any other non-conventional home.
If you are working with a real estate agent, they can help. If you found a manufactured home yourself, driving around or shopping on Facebook Marketplace, you need to find a way to borrow the money.
Sometimes the owner will finance the purchase of land or a mobile home if you have some money to put down.
If the seller owns the house outright or you can afford a large enough down payment to pay off what is remaining on the mortgage, the seller can act as the lender. The seller would retain the same rights over the property as a bank who loans you the money to buy a house. But the seller could not continue to use the house as an asset. The seller can no longer take out a loan using the house as security.
Be careful, though. A lot of rent-to-own offers are scams.
If you qualify for it, you can get a VA loan for a 1976 or newer manufactured home on a permanent foundation with land. A VA mortgage is not available for a trailer on a lot.
Freddie Mac or Fannie Mae
Freddie Mac is the Federal Home Loan Mortgage Corporation (FMCC). Fannie Mae is the Federal National Mortgage Association (FNMA). Both were created by Congress to provide federal backing for mortgages. There may be financial assistance available to first time home buyers.
Freddie Mac Manufactured Homes Mortgages
Expand homeownership opportunities to more borrowers with mortgages secured by manufactured homes. Freddie Mac’s requirements for manufactured homes are designed so that the mortgages we purchase are originated, underwritten and serviced to help qualified borrowers buy homes they can both afford and maintain.
Fannie Mae Manufactured Housing Financing
Affordable financing options
With the country facing a shortage of housing supply, manufactured housing provides a solution for borrowers ready to purchase affordable homes. Whether a borrower is taking one of the most affordable paths to homeownership, or a more attainable alternative to site-built homes, Fannie Mae offers options to help a range of customers achieve the dream of homeownership.
A bank or private mortgage company can help you find a loan you qualify for. The same steps that help you get a mortgage apply to getting yourself into a position to buy a manufactured home.