The manufactured home loan industry has undergone several changes over the past couple of years and the main change is that most all banks have discontinued their subprime manufactured home loan programs. Many still loan under Fannie Mae guidelines but these loans are capped at a maximum 65% loan to value. The problem with this is that many manufactured home owners purchased their properties a few years ago at much higher loan to values when the banks were much more flexible in their loan programs, so when a borrower tries to get cash out for debt consolidation today, they realize it’s almost impossible to find a lender who will go to 80-95% loan to value.
Manufactured homeowners with bad credit are having a tougher time finding mortgages for their homes and many are in adjustable rate mortgages that are starting to climb towards the sky. Leaving borrowers frustrated with very few options in finding a decent loan for their properties.
The truth is that there are still lenders, investors and mortgage brokers that specialize in the subprime financing of manufactured homes. Subprime, meaning borrowers with less than perfect credit to even terrible credit. Even A paper borrowers may be forced to go this route to consolidate debt and obtain a loan with a higher loan to value
The first thing every manufactured homeowner with bad credit should do is their homework and there is no easier way than the good old trusty internet. When searching the web, keywords will be the golden key to connecting with the right lender, investor or mortgage broker. Try keyword phrase searches such as, bad credit manufactured home loan, manufactured home loan, manufactured home loans, manufactured home lenders, subprime manufactured home loan, etc. Each search will pull up different results. Some sites will be just lead portals for companies to sell your information and some will be the companies you want to talk to.
When searching for a manufactured home loan, my advice is to always talk with someone or a company that specializes in these types of loans. If you just go down to your local mortgage company down the street, chances are they can’t help or will give you the run around leaving you stressed out and frustrated.