Mortgage Refinance

Refinancing a manufactured home mortgage can be a smart move if you’re looking to lower your monthly payments, reduce your interest rate, or tap into your home’s equity. But it comes with some unique considerations compared to traditional home refinancing.

Key Requirements

To qualify for most mortgage refinance options on a manufactured home, you typically need:

• Ownership of the land the home sits.
• The home is to be permanently affixed to a foundation.
• The home is to be titled as real property (not personal property)
• A HUD certification label (for homes built after June 15, 1976)

Types of Refinance Loans

Conventional Refinance: Requires a credit score of 620+, and the home must meet size and foundation standards. Offers both rate-and-term and cash-out options.

FHA Refinance: More flexible credit requirements (580+), and includes FHA Streamline for existing FHA loans.

VA Refinance: For eligible veterans, with options like the VA IRRRL (Interest Rate Reduction Refinance Loan).

USDA Refinance: For rural properties, with income limits and location restrictions.

Benefits

Lower monthly payments
Better interest rates
Access to home equity (via cash-out refinance)
Potential to switch from a chattel loan to a mortgage (if the home is now real property)

Challenges

Homes not classified as real property may only qualify for personal loans or chattel refinancing
Older homes (pre-1976) are often ineligible
Closing costs and appraisal fees still apply