When mortgage financing is involved, there are two factors that make the home eligible. First, it must meet the HUD manufacturing standards, and second, it must be a permanently installed structure.
Manufactured homes qualify for FHA and VA loans, as well as RHS loans, those made by the Rural Housing Service (RHS) of the Department of Agriculture. Mortgages on manufactured homes can also be sold to Fannie Mae and Freddie Mac.
The requirements for a manufactured home to be eligible for a mortgage that Freddie Mac will buy are typical of those required by lenders in general. However, Freddie Mac considers mortgages on manufactured homes to have a higher risk than other homes. For this reason, it does not buy all the mortgages that it would from traditionally built homes.
Finding the right mortgage for a manufactured home can be a little more difficult. The best way to get mortgage financing for a manufactured home is to talk with local lenders that are established in the area. In many instances, smaller local banks are better than major banks. This is because the major banks may have policies that are set by people far from your town. These executives may not be located in an area where manufactured homes are common and may know little about them.
Just as Freddie Mac says that mortgages on manufactured homes are considered a higher-risk loan, originating lenders will also require a premium in most instances. Expect to pay a higher interest rate than charged for mortgages for traditionally built homes in the same area.