5 Tips when Completing a Manufactured Home Loan Application

A manufactured home loan application will be considered across all factors including your credit history, the home you are acquiring and other minor details in your application. While you can control very little about how the lender or manufactured home's seller handles the process, you can control every detail of your own application. Taking the opportunity to prepare the application diligently will give you a better chance of securing financing and at a lower rate.

#1 Prepare Your Credit

When you know you will be seeking a large loan in the next year or two, it is time to start preparing your credit and financial health. This means you should assure you meet all monthly payments on existing debt for at least two years. You should pay down debt where possible and assure you are using only about 10% of your credit limits on any revolving lines. If you do not have good credit, consider saving for a larger down payment so your loan amount can be ultimately lower. 

#2 Meet Federal Housing Authority Qualifications

Getting a loan guarantee from a federal agency will greatly reduce your expense. Check to see if you meet qualifications. The FHA sets for the following rules:

  • Have adequate income to meet the payments and your other expenses
  • Use the home as your primary residence
  • Have a suitable place to locate the home; this may be in a manufactured home park if it meets FHA guidelines
  • Home must meet manufactured home standards for safety and installation
  • Have a warranty for at least one year on a new home
  • Home site must have adequate water supply and sewage disposal 

#3 Pay Attention to Detail

Your loan documents should show your attention to detail and professionalism. If you omit questions or neglect to answer honestly, you will be subject to automatic refusal of financing. The way you present your documents is as important as the information they contain. Your loan application should look as clean as a job application, and you should submit it on time in a professional manner.

#4 Provide Supplemental Information

If you have ever defaulted on a loan, consider writing an explanation as to why the default occurred. This is only a good idea if you have a solid reason, such as the loss of a job, a divorce, or an expensive medical payment. If you were simply irresponsible with your credit, it is better to provide other supplemental information. This can take the form of a reference from your employer, landlord or other lenders. Showing you have overcome any previous financial issues is key in obtaining a manufactured home loan.

#5 Be Patient

Loan processing takes time. Your lender will have to contact your employer, run a credit report and consider the merits of your application against other applications received. You may also have to enter loan negotiations, which can take more time. Financing will not be immediately deposited in your bank account unless you are using an instant loan option. In most cases, even after you are approved for a loan, you will have to wait for the funds to come through in full. It is not uncommon for the loan to take weeks to fulfill if it is coming from an outside lender and not the manufacturer.