Manufactured Home Refinance - Current lending restrictions are firmly in place, and while it may be a challenge to secure this type of home refinance, it's not an impossible feat.
With the right combination of research, patience, and timing, securing a manufactured home refinance is a possibility, especially if you've been diligent about maintaining a good credit score.
When refinancing a manufactured home, the first step is determining what type of loan you currently have. If you purchased the land and home together and have the manufactured home permanently attached to the property, it's likely that you have a mortgage loan; if you purchased your home and land individually, you may have a personal loan.
If you have a mortgage, you'll need to shop around to locate a lender that will offer financing options for manufactured homes. Since the rates and fees will vary widely, it's best to obtain quotes from at least 10 lenders before narrowing your choice.
With personal loans, lenders have more flexibility to adjust for rates and terms, so the process of securing a refinance may be simpler. As with manufactured home rates, personal loan rates and associated fees will vary dramatically, so it's imperative that you shop around to find the lender with the most favorable offering.
Before attempting to refinance, make every effort to improve your credit score. Manufactured homes carry a significant risk to the lender, and a high credit score can help offset some of this risk. Improve your personal credit by paying down credit cards to at least half of their available credit limit (30% is ideal), and demonstrating a solid history of on-time payments. Also, be sure that your home is in good repair and well maintained, as an appraisal and inspection will be crucial components of your refinance.
This type of home refinancing can be a stepping stone for securing your financial future. Before refinancing, make certain that you understand the rates and terms and that you never sign any contract that's not in your best interest.