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Navigating the Financing Maze for Manufactured Homes with Zippy

Navigating the Financing Maze for Manufactured Homes with Zippy

The dream of homeownership is universal, and for many, manufactured homes offer a practical and affordable path to making this dream a reality. However, navigating the financing landscape for manufactured homes can be distinct from the process of traditional site-built housing. Recent news stories underscore the importance of understanding financing options and making informed choices when venturing into manufactured home ownership. Wanting to share the best ways to navigate this process, we turned to one of our trusted lending partners, Zippy, for insights and guidance.

Regarding financing a manufactured home, two primary routes should be considered: Conventional Mortgages and Chattel Loans.

Conventional Mortgages:

   - Available to qualified buyers who purchase a manufactured home and a parcel of land.

   - If you own the land, conventional mortgage options, including FHA, may be accessible.

 Chattel Loans:

   - Tailored for purchasing manufactured homes in existing communities, treating them as personal property where the borrower owns the home but rents the land.  

- This option offers advantages such as faster approval, flexibility, and increased accessibility, making homeownership attainable for a broader audience.

5 Advantages of owning a manufactured home in a Roots community:

1.      Lower your monthly payments and potentially put little to no money down if you rent in the community.

2.      Improve your credit and invest in your future, one month at a time. 

3.      Lock in monthly home payments with fixed loan rates. No pre-payment penalties.

4.      Become a permanent fixture in your community.

5.      Enjoy the freedom and security of homeownership.

Decoding Interest Rates

Interest rates for manufactured homes are subject to variation based on several factors:

  • Age and Size of the Home: Older and smaller homes may incur higher rates.
  • Loan Amount and Down Payment: A larger down payment can result in more favorable rates.
  • Loan Term: The length of the loan influences the interest rate.
  • Borrower's Credit: A crucial determinant, your credit score impacts the interest rate you qualify for.


Preparing for the Journey

Before embarking on the journey of purchasing a manufactured home, it's beneficial to organize your financial house:

Save for the down payment and closing costs:

A good guide is to plan to put down between 5% -10% of the cost of the home (for example, if the home price is $100,000 you would need a minimum of 5%  or $5,000 down). 

Understand your credit score:

  • Credits scores range from “poor: 300” to “Excellent: 850” and serve as an indicator of how likely someone is going to repay borrowed money and pay bills based on historical purchases and practices.
  • Don’t let your credit score hold you back. For example, ZippyMH accepts credit scores starting at 575.
  • Gather essential financial documents such as bank statements, pay stubs, and tax returns.


 Getting pre-qualified by a lender is a pivotal step. It not only provides insights into your affordable range based on your financial situation but also allows exploration of various lending products, including conventional loans and government-backed options like VA and FHA loans.   Lenders, like ZippyMH, offer an online risk-free pre-qualification process.

“We wanted to create a digital front door for the homeownership journey for manufactured housing that was fast, easy and 100% virtual - because we believe in empowering homeownership for individuals and families across the nation.”  Ben Halliday, Zippy Co-founder and CEO, Ben continues “We wanted potential homebuyers to be able to go online, fill out a form and within seconds receive an offer – and have direct access to friendly ZippyGuide (a licensed mortgage loan originator), to provide support at every step of the way.”

Financing a manufactured home is a significant decision, and financial preparedness is paramount. Afterall, it is most families' most significant and most personal bill.  Recent news stories underscore the importance of informed decision-making in this arena. Whether opting for a conventional mortgage or a chattel loan, assembling your financial information, defining your goals, and seeking housing counseling can pave the way for a successful and affordable homeownership experience. It's a path that opens doors to the dream of owning your own home.

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