Manufactured Home Refinance

A mortgage is a long-term investment. Most mortgages range from 15 to 30 years, and in that time a lot can change both in the real estate market and personally, for the homeowner. If interest rates are lower than when your loan originated, if your credit score has improved, and if you have equity built in your loan, refinancing your mortgage might be worth considering.

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Benefits of Refinancing

Manufactured home loans traditionally start out with a higher interest rate and less desirable terms than a mortgage on a conventional property. There are several benefits to refinancing a manufactured home:

  • Improve the terms of the loan – refinance with a fixed interest rate instead of an adjusted rate mortgage (ARM), remove a balloon payment, or transition to an FHA loan.
  • Pay off the loan faster – oftentimes you will find a shorter-term loan with a lower interest rate. In some cases, when your interest rate decreases, you can keep your monthly payment the same while paying off the loan much faster.
  • With a lower interest rate, you are saving money and will have smaller monthly payments.
  • Consolidate other debt into one loan – when you refinance you will often have the option of rolling other type of debt into your new loan with a lower interest rate.
  • Take out a mortgage equity loan – once you have built up equity by paying down your mortgage, you can cash out up to 85% of that equity with a second mortgage when you refinance your loan.

Qualifications for Refinancing

These are some common qualifications that a bank or lender will check for before offering to refinance your loan.

  • If you are looking to refinance with an FHA loan, the size of the dwelling must be at least 400 square feet. With a conventional loan, the dwelling must be at least 600 square feet.
  • The homeowner must own the land that the dwelling is sitting on.
  • The manufactured home is a single-family dwelling.
  • The home was built after 1976. In 1976, the Department of Housing and Urban Development (HUD) created higher standards of building for manufactured homes. Manufactured home built before 1976 are classified as “mobile homes.”
  • The dwelling has a title and is classified as real estate, not personal property.
  • The home has been permanently fixed to the ground for at least twelve months (the home is not on wheels or a moveable platform).

If your income to debt ratio has decreased, or if your credit scores have improved you might be able to refinance a manufactured home with as little as five percent equity in the loan. Call Signature Lending Services at 877-948-2562 so we can help you learn more about your refinancing options.

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