Many homeowners are sitting on significant equity, but owners of manufactured homes often wonder whether they can access it. While manufactured homes face additional lending requirements, home equity loans may be possible under the right conditions.
Why Manufactured Homes Are Treated Differently
Manufactured homes are evaluated differently than site-built homes due to construction methods, depreciation patterns, and property classification.
Key Requirements for Home Equity Loans
Property Classification
The home must typically be classified as real property rather than personal property.
Land Ownership
Most lenders require the homeowner to own the land beneath the home.
Permanent Foundation
A permanent, approved foundation is usually required.
Age and Condition
Newer, well-maintained homes are more likely to qualify.
Loan Options for Manufactured Homes
Available options may include FHA Title I loans, VA loans for eligible borrowers, specialized lenders, and credit unions.
Documentation Needed
Borrowers should be prepared with property records, foundation certification, appraisal information, and proof of land ownership.
Common Challenges
Challenges may include lower appraisals, borrowing limits, and higher interest rates.
Final Thoughts
Home equity financing for manufactured homes is possible in some cases and depends on meeting specific requirements.
If you own a manufactured home and want to explore home equity options, contact our team to review your situation.