Manufactured homes or modular homes are comparatively less affordable than usual homes in Houston. With this thought, many home buyers contemplate investing in manufactured homes to turn their dream into reality. However, they often get confused about whether they can pursue FHA manufactured home loans in Houston, Texas. This write-up will help you clear all your doubts and assist you in making the right financial decision.
FHA Manufactured Home Loans
FHA manufactured home loans are government-backed mortgages insured by the Federal Housing Administration and issued by FHA-approved lenders. These loans enable borrowers to purchase homes built in a factory. The specialty of these loans is first-time homebuyers can purchase a newly manufactured home even if they have a low credit score and a riskier profile.
FHA Manufactured Home Loan Requirements and Guidelines
FHA home loans are comparatively easier to obtain than conventional mortgages. But still, you have to meet a few standard loan requirements and follow loan guidelines to qualify for this loan.
Standard FHA loan requirements – FHA loans require a minimum credit score of 580, a 3.5% down payment, and a 43% debt-to-income ratio. Besides, the new home should be your primary residence and must have a two-year constant work history to show the steady flow of your income. These requirements remain the same for manufactured home loans.
FHA manufactured home loan guidelines – Besides the standard needs mentioned above, FHA manufactured home loans require the following guidelines.
- The manufactured home should have its existence after 15thJune 1976.
- The home should consist of 5 acres of land.
- The minimum loan amount should be $100K.
- The home should comply with the Manufactured Home Installation Standards.
- The new residence should have a red-colored HUD certification label attached to all sections. It should remain prominent even after you apply paint.
- The manufactured home should be at least 400 square feet in area.
- Though created in a factory, the new home should have a permanent foundation.
- The home should have an FHA-approved water supply and sewer system.
- The manufactured home must come with a one-year warranty.
The Bottom Line
FHA-manufactured home loan guidelines might be stricter, but these loans are the best for first-time borrowers. Once you understand them, it becomes easy job to pursue the loan. Make sure you consult with your lender about these guidelines, learn the process in detail, and apply for the loan cautiously. Get in touch with the financial specialist and get the required fund for your dream home.