Most lenders won’t finance a manufactured home that has been moved from its original installation. We will. VA financing for veterans, and a Non-QM program for everyone else with 30% down. Doublewides and larger only.

Financing a Manufactured Home That Has Been Moved

Fannie Mae and Freddie Mac do not allow for manufactured homes that have been moved from their original installation to be financed with conventional financing. If you are trying to use FHA financing they will not allow this either. If you are a veteran however, the VA will allow you to finance a manufactured home that has been moved one time. VA financing is the only traditional type of financing that allows this.

With over 200 lenders at our disposal we do however have an option to finance manufactured homes that have been moved. It is not traditional financing though so there are some major restrictions. The first being that you must have 30% down. The max loan to value is 70%. The minimum loan amount is $100,000, so that minimum purchase price must be $154,000. The second big requirement is the home must be a doublewide or larger. See below for more restrictions. Keep in mind this is for everyone using financing that is not a veteran.

Requirements to Finance a Manufactured Home That Has Been Moved

• The home must be built on or after June 15th of 1976.
• It must be a doublewide or larger.
• It must be tied down (permanent foundation).
• You must own the land, it cannot be in a park or in a PUD, no HOA dues.
• The title to the manufactured home must be retired before closing (not at closing).
• 70% max loan to value on purchases, and 65% max loan to value on cash out refinances.
• The minimum loan amount with this program is $100,000.

Documenting Income

We have the ability to finance these homes as investment properties as well. Whether you are purchasing the home for a primary residence or an investment property you can use bank statements to qualify if you are self employed. You can also do what is called a DSCR loan, which stands for debt service coverage ratio loan. That means if it’s going to be an investment property you can qualify based on rent or potential rent that the property will garner. Other than that we can of course review your tax returns to qualify.

What Is the Drawback on Financing a Manufactured Home That Has Been Moved?

Because you cannot finance these properties with traditional financing, the number of lenders who will finance them is few and far between. If they do finance them often they are difficult to work with or slow. Higher interest rates and higher closing costs come with these unique products, but we do however aim to provide a smooth process for our clients. Certain lenders in this territory are notorious for being slow, but we aim to expedite the lending process as quickly as possible.

Keep in mind if the title has not been retired it will need to be done before closing. This can be a time consuming process. The title retirement is the legal step that converts the home from personal property (with a vehicle-style title held at the DMV equivalent) into real property attached to the land. In Florida this happens through the county tax collector’s office. The home is then taxed as real estate going forward instead of as a vehicle. Plan for 4 to 8 weeks for the title retirement to complete, and start it as soon as you go under contract.

Why a Home Gets Moved in the First Place

First thing is first, there are a handful of common reasons we see manufactured homes that have been moved from their original installation. The home was originally set up in a park on leased land and the owner bought their own land to relocate it. The home was inherited from a family member at one location and the new owner moved it to their property. The home was relocated as part of a divorce settlement or estate distribution. Or the home was moved when the original park closed or was sold for redevelopment. None of these situations are anyone’s fault. The agencies just don’t want to underwrite the moved-home risk, so the loan options narrow.

That’s why most lenders will simply tell a borrower “no” when they find out the home has been moved. The borrower then either gives up, settles for a chattel loan at very high rates, or has to keep calling around. We close moved-home loans every week. The Non-QM program isn’t cheap but it works, and for veterans the VA path is straightforward.

VA Financing on a Moved Manufactured Home

If you’re a veteran, this is almost always the right path. The VA allows manufactured homes that have been moved one time, with no down payment required, and you can include closing costs in the loan up to 100% of the property’s value. The VA does not require an engineer report. They do require a water test (bacteria and lead) if the property is on a well, which most rural Florida properties are. We close VA moved-home loans on doublewides routinely.

Keep in mind the VA still requires the home to be on a permanent foundation, with HUD plates present, and the title retired. The “moved” part doesn’t waive any of the other manufactured home requirements. If those base requirements aren’t met, no program will lend on the property regardless of whether it’s been moved or not.

Moved Manufactured Home FAQ

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Send us the property address and your scenario. We’ll come back with whether VA, Non-QM, or chattel is the right answer, plus the down payment math and a timeline.