Manufactured and modular homes are popular across North Carolina, especially for buyers looking for more home and land without stretching their budget too far. But when it comes to getting a mortgage, there are a few details that can surprise buyers.
First, manufactured and modular homes are not the same thing. Modular homes are generally built in sections at a factory and then assembled on a permanent foundation. Once completed, financing can often look similar to financing a traditional home.
Manufactured homes can have additional requirements. Depending on the loan program, the lender may need to verify the home's age, foundation, title status, HUD labels and other property details before the loan can be approved.
Another issue buyers sometimes discover late in the process is that the land matters just as much as the home. If you are buying a manufactured home with acreage, adding a new home to land you already own or purchasing a home that has been moved from another location, the financing options may change.
The condition of the property matters, too. Additions, porches, decks or modifications to the original structure can create additional appraisal or inspection requirements. Something that looks minor during a showing could become important once underwriting begins.
There is also no single loan program that works for every manufactured-home purchase. Depending on the property and the borrower, FHA, VA, USDA or conventional financing may be possible. Each program has its own rules concerning the home, foundation, land and borrower qualifications.
That is why one of the best things you can do is talk with a lender before making an offer. Give them as much information about the property as possible, including whether it is manufactured or modular, its age, whether it has been moved and whether land is included.
Manufactured and modular homes can absolutely be financed in North Carolina. The key is knowing the requirements early so you can avoid finding out about a financing problem after you are already under contract.
