• Can I get a mortgage on a modular home?

    We get this question every once in a while.

    The short answer is: yes.

    BUT there is a big BUT…

    There are A LOT of stipulations when getting a mortgage on a modular home. To start with, it cannot be on leased land, although we have seen some banks consider it if the lease exceeds the amortization of the mortgage (eg. 25 years). So if it’s in a trailer park, forget it.

    Land

    If the land is acceptable, the next thing they look at is the make/model of the modular home. It needs to fall on their list they will accept.

    Foundation

    If the land is ok and the modular home meets their criteria, now we need to look at the foundation. If it is not on a proper, concrete foundation or pad of some type, they will not accept it.

    Utilities

    Next we look at utilities. You need to have at least electric running to it, and municipal or septic, well or cistern.

    Once all of these criteria are satisfied, the bank will look at the clients’ ability to qualify.

    If you cannot get a mortgage for any of the above reasons, you might consider seeking a personal loan OR leveraging another property.

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