MANUFACTURED HOMES REVERSE MORTGAGE – MOBILE HOMES HECM LOANS
Manufactured Reverse Mortgage | Mobile Homes HECM Reverse Loan
Have you been trying to find reverse mortgage lenders in your state/city who can actually help you get a reverse mortgage loan on your manufactured/mobile home – to be honest so have we – but recently we have teamed up with a nationwide manufactured HECM lender who is able to help you get into a reverse Loan for your mobile home (the best part we dont require income or credit scores to qualify).
To Qualify for a manufactured homes reverse mortgage
- must be 62 years old (those 60 days from birthday will also qualify)
- must own the home – be your primary residence (live there 183 days out of the year)
- have equity in the property (equity definition below)
- never have defaulted on government debt (you can not have been late on any government insured or issued debt)
Currently qualifying mobile homes in a park deemed as Condoland are not eligable for a reverse mortgage
Mobile Homes Manufactured Home Reverse Loan Property Requirements
- At least 400 square feet minimum floor area
- own the land
- Built after June, 15 1976, to the Federal Manufactured Home Construction and Safety Standards as evidenced by an affixed certification label. (seal constructed in conformance with Federal Manufactured Home Construction and Safety Standards.)
- Property is classified and taxed as real estate and is designed to be used as a dwelling with a permanent foundation built to FHA requirements.
- Built and remains on a permanent chassis.
- Mortgage covers both the unit and its site, and has a term of not more than 30 years from date that amortization begins.
- Finished grade beneath home is at or above the 100-year flood elevation.
- acceptable perimeter enclosure (skirting is a must)
- wheels, axels, hitch must be removed
- must be permanently affixed to the property
- “The only movement acceptable for manufactured
homes is from the factory to the dealer and then to the site. Once there, it
must remain. It may be jacked up to have a permanent foundation installed”
How does a reverse mortgage work for a manufactured property
Reverse mortgages allow seniors who own their homes and have equity built up to access the equity without having to worry about mortgage payments and or selling the home. Seniors with double wide manufactured homes who meet the above qualifications are also able to access their equity with the HECM programs.
This program is insured by the government which adds many safety features for seniors and their heirs/estate. Seniors have had a hard time finding a reverse mortgage for mobile homes thus we decided to simplify the process and offer our free comparison HECM service for manufactured homes as well.
The reason it is called a reverse mortgage is that instead of the borrower paying the bank for a loan – the bank will give the borrower a loan or eliminate any mortgage/debts so that the senior can retire ( with no monthly payments due).This will free up your cash flow – allow you to keep more of your money in your pockets – while keeping ownership of the home and never having to make monthly mortgage payments.
Your heirs also dont have to worry about loosing their chance at owning your home ( as you can leave the property to them ), also since the loan is a non-recourse loan they wont have to pay for the loan balance if it ever exceeds the home’s value ( instead the government pays the lender since the loan is insured by FHA.)
Frequently Asked Questions (FAQ) Manufactured Homes & Reverse Mortgages
What are the up-front fees for a reverse mortgage loan on a manufactured home?
FHA Appraisal fee – $300-$450
HUD counseling fee – $80-$125
Foundation Certificate – $350-$1000 – A engineer has to do the inspection, this is separate from the appraisal.
IBTS-HUD Plate – $75 – this confirms home was manufactured 1976 and after.
Is it doublewide or bigger?
Reverse loans require the home to be larger than a single wide ( single wide manufactured homes will not qualify). Even if yours is classified as a super singlewide, the reverse mortgage will not work. Doublewides or triplewides are needed to make the loan work for you.
Has your home been moved twice (or more)?
If your home was placed on its original site, and then bought used and moved to its current site, it is ineligible for a reverse mortgage. The home must be placed on its original site and left there.
Do you own the land?
Manufactured homes in a park can work, but you need to own the land. If your home is on leased land, or in other words, you pay rent, reverse mortgages probably won’t be the solution for you.
Reverse Mortgage Interest Rates Different for Manufactured Homes?
Interest on the HECM loan is the same for manufactured homes click on the link above and you will be taken to our rates page – you can select both a fixed or adjustable rate.
How do I calculate how much money I can receive from my manufactured home reverse mortgage?
Below is a link for our HECM calculator it works the same way for manufactured homes – the tricky part here is to make sure the actual property meets the guidelines – then if you are ready we can assist you in receiving multiple quotes. The value you receive is based on the value of the home and your age – among other factors.
reverse mortgage calculator
What happens if my spouse is not yet 62 – we own a mobile home and want a reverse mortgage?
This is a difficult call which needs to be thoroughly analyzed – as the HECM loan would come due if the borrower who is 62 older passes away – for those who are near the age requirement it usually is a safe call to consider one.
Does the HECM Saver apply if I have a manufactured home? HECM saver reverse mortgage
yes, you can qualify for the HECM saver program – this program reduces the upfront mortgage insurance cost, one negative is you have less access to your equity ( the bank wont lend you as much as with a HECM standard.)
Modular home reverse mortgages
Double-wide homes reverse mortgage
Manufactured homes reverse mortgage
Mobile homes reverse mortgage
Which banks do mobile home reverse mortgages
Can I get a reverse mortgage on a mobile home or manufactured home?
A lender that finances a reverse mortgage is counting on its ability to sell the property down the road to recoup its investment with interest.
Since the sale of the property is the most common way for a reverse mortgage to be repaid, its condition is usually more important to the lender — and the government agency backing the loan — than the condition of the borrower’s credit.
That’s why there are specific standards for a property that must be met for the homeowner to qualify for a reverse mortgage. When the bank or mortgage company goes to sell the property, they want to encounter as few obstacles as possible.
The assessment of the property’s qualifications will occur during the appraisal process. The Federal Housing Administration (FHA) has developed Minimum Property Standards (MSP) to guide appraisers through the process of determining property eligibility.
Are mobile and manufactured homes eligible?
The FHA and the U.S. Department of Housing and Urban Development (HUD) have strict guidelines on the eligibility of manufactured homes and mobile homes for reverse mortgages.
Mobile homes generally are not eligible for a reverse mortgage because, by definition, they are not affixed to a permanent site, which is a core requirement of the FHA and HUD. Also, many mobile home owners do not own the land that holds the property, but typically lease it from an association or park ownership.
The FHA defines manufactured housing as “structures that are transportable in one more more sections designed to be used as a dwelling when connected to the required utilities…”
FHA considers modular housing different than manufactured housing and appraisers can evaluate modular homes the same as stick-built properties.
To qualify for an HECM or any FHA-insured mortgage, a manufactured home must meet the following minimum requirements:
- The floor area must be at least 400 square feet.
- It must have been constructed on or after June 15, 1976.
- The home was designed specifically to serve as a single family’s primary residence.
- The home must conform with Federal Manufactured Home Construction and Safety Standards. It will have a seal bearing this designation.
- The property and the site must exist as a single real estate entity in accordance with state law.
- The mortgage must cover both the unit and the site.
- The home must have been moved from the factory it was built to its current site. If it had ever been placed on a separate site, then it is ineligible for an HECM.
- The house must have a permanent foundation built to comply with the Permanent Foundations Guide for Manufactured Housing.
- The finished grade elevation beneath the manufactured home or, if a basement is used, the grade beneath the basement floor must be at or above the 100-year return frequency flood elevation.
Other factors to consider
Even if the property meets these standards, lenders may have additional requirements. For example, some lenders won’t consider a reverse mortgage on a manufactured home unless it were at least 800 square feet and built on or after 1990.
Also keep in mind that manufactured homes typically appraise for less than traditional homes. Since the home’s value is a key factor in determining how much a homeowner can borrow from a reverse mortgage, this could limit the amount of funds available.
For example, a 65-year-old who owes nothing on a $150,000 home will have a principal limit of about $81,000. After paying about $6,000 in closing costs, the borrower’s available reverse mortgage funds would only be $75,000.
Another issue arises when manufactured homes are built on large acreages. These types of properties are often difficult to obtain a reverse mortgage on because the value of the land is often as much, if not more so, than the value of the physical structure, a scenario that loan underwriters often balk at.
As with all properties insured by the FHA, there are other minimum property standards. Before signing off on a reverse mortgage, appraisers and underwriters will also assess the condition of the property, the presence of hazards such as pollutants, and external conditions such as noise, traffic, or odors that could affect its marketability.