Can I Get A Reverse Mortgage On A Manufactured Home

Youre Borrowing On Land You Will Own At The Time Of Purchase Or Currently Own For A Refinance

When you do not own the land and make lease payments on that land, it is considered a chattel loan and not a mortgage. Meaning your property is still classified as a vehicle and not taxed as real property as defined by the county assessor. Manufactured or Mobile homes residing on leased land or trailer parks most likely are not permanently affixed to the ground and could be moved, and therefore too risky for a traditional mortgage lender to lend on.

What Does Conventional Fha Usda & Va Loan Mean And Which Do I Choose

These terms refer to the program type, and more often, it is decided based on your goals. These can also be determined by other factors such as location, loan amount, borrower status, and borrowers desired transaction request. Each program has a different set of product offerings underneath it that are uniquely different.

How To Get A Reverse Mortgage Manufactured Home

The FHA and the HUD set the criteria for obtaining a HECM loan. For a manufactured home to be eligible, borrowers will need to make sure their home meets the following standards:

Have a floor area that is at least 400 square feet

Was built after June 15, 1976

Bears an HUD tag to show it meets federal safety and construction standards for manufactured homes

Be classified and taxed as real estate

Was moved from where it was made directly to the property site

Besides meeting specific criteria for manufactured homes, you also need to meet the basic eligibility requirements for a reverse mortgage, like the following:

Be 62 years old or older

Fully own the property or have significant equity in it, typically 50%

Use the property as your principal residence

Not be delinquent on any federal debt

Have the financial resources to afford ongoing charges like property taxes, insurance and homeowners association fees

Participate in counseling with a HUD-approved HECM counselor

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The Borrower Has Substantial Equity In The Home

Equity includes the amount of money paid on the mortgage plus the amount the home has accrued in value above the amount owed. Specific amounts are determined by the FHA and dependent on multiple factors, including borrower age and current interest rates. In general, borrowers will need around 50% equity in the home to qualify.

After determining you meet the eligibility requirements and that a reverse mortgage is a good idea for you, the next step will be to research available lenders and loan offerings.

This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.

We Want Your Property Type & Actively Seek To Help You:

• Your local bank or credit union may be acting like they are doing you a favor to keep you with them, but in fact, they dont want this property type on their books. They may talk you into putting more money down or taking a higher rate, saying they are making an exception to the guidelines. In this case, their inability to be competitive or desire for your property type is costing you more just by staying loyal. And while we love loyalty, we feel you shouldnt take a rate that is 2-5% higher, requiring 20% or more down to sacrifice for that loyalty.

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You Can Obtain An Fha Approved Reverse Mortgage For Your Manufactured Home

A Reverse Mortgage is a Loan Program that allows you to use the Equity in your Home to pay your Mortgage Payments. The Reverse Mortgage is available for your Manufactured Home.

You may be able to receive cash in addition to having NO Payments to make on your home. The Primary Reverse Mortgage is an FHA/HUD backed loan. That is to say that you are guaranteed to receive the Loan Payment Program you select.

The Reverse Mortgage loan is for people with limited or fixed income that want to stay in their home, payment free, until they sell the home or pass away. You can take out a Reverse Home Mortgage Loan, and still be free to sell your home at any time.

It is a fabulous program for certain Senior Citizens, and I work with Seniors a good deal.

For an Example of how a Reverse Mortgage Works: My clients name was Frank. He lived in the mountains in his manufactured home and he owned his home worth $160,000. He only owed $33,000 on his house.

But, cash flow was a problem for him. He had limited fixed income with Social Security. He paid $300 a month for his manufactured home, plus taxes and insurance.

The Reverse Mortgage on his manufactured home could help him in this way:1) He would no longer have the $300 a month payment. That would be paid from the equity in his manufactured home.2) He could either receive another $300 a month, or take $50,000 in cash, or use a $50,000 credit line.

Your Loan Request Is Greater Than $75000

Weve found that the higher rates below $75,000 cheat you out of getting a much more beautiful home. Sure, you may have your reasons like buying a home for a friend, the property is cheap and exactly what you want, or you have a deal too good to be true. But does that loan make financial sense?

If you seek a loan under $75,000 for your mobile home, maybe you can qualify for an FHA 203k or VA renovation loan. Renovation loans allow you to upgrade your new home purchase or renovate you’re existing modular home increasing your loan amount, equity position, and home value and lowering your rate at the same time.

Great, if you answered YES to each of these, you passed the first part of our pre-qual test. If you have a NO somewhere, call us now, or take our eligibility checker to discuss your situation. Answering NO doesnt mean you wont qualify it just means we need to find out which area impacts your request.

Before we discuss the programs we offer, lets review the most important ways to make the process as smooth as possible.

*Construction and Renovation Loans For Manufactured Homes Are Not Available In Alaska, Hawaii, or New York. Cash-Out Loans Not Allowed In Texas or on Single-Wide Manufactured Homes.

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Home Loans for Retirees or with Fixed Incomes

Once retired, the elderly often feel the need to downsize their home, which is why a manufactured home remains the number one housing option for most of them. Lower maintenance and reduced utility costs are other principal factors why manufacturing homes appeal to retirees. Thanks to the Equal Credit Opportunity Act enforced by the Federal Trade Commission , financing a manufactured home is also quite easy for retirees living on a fixed income now.

So, what options do retirees have when it comes to financing a manufactured home?

Fannie Mae senior home buying program

Eligible retirees may qualify for a Fannie Mae loan under certain conditions.

Under the Fannie Mae senior home buying program, the lender uses the borrowers retirement assets to qualify for the mortgage. In addition, vested assets from retirement accounts can be used for the down payment, closing costs, and reserves. However, all retirees must mention that they will receive regular income from the asset for at least three years.

Customized solutions, flexible loan terms, and quick processing and underwriting are some of the additional features of this financing option that attract retirees living on a fixed income.

Freddie Mac senior home buying program

Freddie Mac also renewed its guidelines to meet the needs of the retirees with limited incomes but substantial assets. So, this is yet another option retirees or those with fixed income can consider.

VA Loans

Follow These 3 Steps To Get A Competitive Low Fixed

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What Disqualifies You From Getting A Reverse Mortgage

Some of the things that can prevent you from getting a reverse mortgage include not using the home as your principal residence, not having sufficient equity in the home, and lacking the financial resources to pay the ongoing costs of homeowners insurance, property taxes, maintenance, and upkeep. Other disqualifications include being delinquent on federal debt or living in an ineligible property.

What Is A Modular Home

Often times Iâll hear homeowners that have manufactured homes misclassify their home as either a mobile home or modular home. A modular home is usually built in sections and then these sections are shipped to the home site to be assembled there. In terms of home lending, modular homes are treated more like site built or stick built homes that would be classified as an SFR. Most loans will work for a modular home just like a stick or site built home.

Want more info about reverse mortgage? Call us at 492-2252 x704 or Email us at

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Reverse Mortgage Manufactured Home Requirements

• The homes floor area must be no less than 400 square feet .
• The structure must be built and remain on a permanent chassis, and it must be connected to the foundation through welds, bolts, and various light gage metal plates.
• The home must have a seal that shows it has been constructed in conformance with Federal Manufactured Home Construction and Safety Standards. If your home was constructed after June 15th, 1976 it will have this seal.
• The finished grade elevation beneath the manufactured home or, if a basement is used, the lowest finished exterior grade adjacent to the perimeter enclosure, shall be at or above the 100-year return frequency flood elevation.
• The home must be classified and taxed as real estate and cannot have been installed or occupied previously at any other site or location.

*Manufactured homes are often referred to as mobile homes however a true mobile home where you do not own the land and is not taxed as real-estate are not eligible for any FHA reverse mortgage loan.

Can You Get A Reverse Mortgage On A Single Wide Manufactured Home

• Want more info from Reverse Mortgage Loan Advisors? [email protected]

Here are some basic Manufactured Home Reverse Mortgage Requirements:

This post is not intended to go over the requirements that pertain to income, credit, etc.. The following is just a quick look at the most basic criteria required for your property. You should also note that while were specifically talking about single wide criteria, theyd also apply to double wide homes as well. Remember, the lenders that do reverse mortgages on single wides are fewer and farther between vs its double wide counterpart.

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Reverse Mortgage Eligible Properties

Applying for a reverse mortgage is a viable option for some older adults. Organizing this type of mortgage allows those around the age of retirement to access a portion of their home equity to use for health care expenses and other purposes.

Reverse mortgages are geared toward individuals 62 years of age or older. These arrangements enable seniors to stay in their homes without a monthly mortgage payment as long as they stay up to date with home insurance and tax payments.

To Qualify For A Reverse Mortgage In Canada The Following Factors Are Assessed:

• You and your spouseâs age
• Location of your home
• Appraised value of your home
• The condition of your home
• Your home equity

The Reverse Mortgage Facts You Need to Know!

Read about the pros and cons of a reverse mortgage to see if it is right for you.

In 2 minutes find out how you can qualify for tax-free cash with the CHIP Reverse Mortgage® and get your FREE guide today!

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Fha Guidelines For Condo Reverse Mortgages

• Structural soundness
• Absence of hazards

Property inspections include an Individual Condominium Unit Appraisal Report, which is an appraisal form specifically created to assess condominiums.

Many discrepancies or required repairs can be easily rectified, but until 2019, it was challenging to obtain an FHA loan on a condo due to restrictive lending policies. In fact, out of the 150,000+ condo projects across the country, only 6.5% are approved for FHA lending.

How To Apply For A Reverse Mortgage

Find a FHA-approved lender. HUD itself does not extend loans. Instead, interested borrowers have to contact an FHA-approved lender if they want to apply for a loan. HUD maintains a searchable database for these lenders on its website.

Get your documents in order. There are also specific forms of documentation that the mortgagee must obtain to secure FHA backing. If an HUD tag is not present on the home, a verification statement must be obtained from the Institute for Building Technology and Safety.

A mortgagee must also obtain a certificate stating that the home complies with standards set in the Permanent Foundations Guide for Manufactured Housing. This certificate can be obtained through either an engineer or architect.

Meet the basic age and ownership requirements. The borrower must be at least 62 years of age, act as the principal resident and either own the home outright or be able to pay off their mortgage balance with the proceeds generated from closing the reverse mortgage.

Continue paying taxes and insurance. Applicants must also have enough funds to pay taxes, insurance and repairs on the home.

Meet with a housing counselor. Those applying for a reverse mortgage must also meet with an HUD-approved mortgage counselor to discuss how the loan functions and the applicants obligations.

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Who Is Eligible For A Reverse Mortgage

Eligibility for a reverse mortgage can depend on what type of reverse mortgage youre interested in getting. For example, some state and local government agencies, as well as certain nonprofit organizations, offer reverse mortgages, but if youre looking for a federally insured option, then you need a home equity conversion mortgage . These reverse mortgage products are backed by the U.S. Department of Housing and Urban Development .

So who qualifies for an HECM? To be eligible, homeowners generally must:

• Be age 62 or older
• Own their home outright or have paid down the majority of their mortgage balance
• Not be delinquent on any federal debts
• Have financial resources to cover the ongoing costs of homeowners insurance, property taxes, maintenance, and repairs
• Attend HUD-approved consumer counseling

You also must own and reside in an eligible property. Under HUD guidelines, eligible properties include:

• Single-family homes
• Individual condominium units that meet Federal Housing Administration approval requirements
• Manufactured homes that meet FHA requirements

Requirements for eligible properties may be different if youre getting a reverse mortgage through a program that is not affiliated with HUD. There are unscrupulous lenders out there, so be extra careful if you are getting an unaffiliated one.

In addition to your financial resources, your potential future income and also may be considered as part of the reverse mortgage application process.

Reverse Mortgage Application Process

GoodLife is glad to assist you in finding a reverse mortgage solution to help you find an additional source of retirement cash. Were delighted to be TrustPilots top-rated lender, and we offer the finest rates in the market, which can match or beat our competitors rates.

Our unique business model allows us to handle the entire reverse mortgage application process in-house, saving you time and money. Most importantly, we move quickly to fund the loan so you can receive fast access to cash.

• Education Well start by getting to know you and your financial goals, and then well go over the HECM program and how reverse mortgages work. Our purpose is to enhance peoples lives by assisting them in achieving greater financial independence, but were also committed to making sure that this type of loan is the right fit for the right person at the right time.

• Counseling All applicants must attend an approved counseling session to speak with a counselor who will go through relevant information and validate your eligibility for a HECM, according to HUD criteria.Theyll serve as an unbiased third party that can answer any extra questions you might have.

• Application Following that, well arrange for a professional appraisal to ensure that your property is safe and up to FHA standards. The appraiser will also make an estimate of your homes value to assist us in determining how much equity we can help you access through loan proceeds.

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