This is because they are built with high-quality materials and construction techniques. Because modular homes are manufactured homes, architects and designers have approached styling creatively to elevate them from the stigma associated with the nomenclature.

You can get a 30 or 40-year DSCR mortgage for a 1 to 4-unit investment property based on its current or anticipated rental income. Loan amounts range from $150,000 to $3.5 million. To qualify, we’ll check your credit and require a down payment (or refi equity). No income or employment verification, no debt-to-income ratio, no tax returns, no financials needed. When financing Modular Homes, DSCR loans allow you to close the title in your personal name, trust name, or that of an LLC. A Modular Home is 1031 exchange eligible.

Apply online or call (866) 803-2853

Source: DSCRLender.com

The post The Benefits of Modular Homes first appeared on MortgageInsider.org.

Early mobile home in a Delaware trailer park

Mobile Homes

Mobile homes gained popularity in the early to mid-1900s as a practical option for people who needed to relocate for work while still providing a home for their families. Originally mobile homes resembled trailers or campers, complete with wheels and exposed tongues for towing.

The National Mobile Home Construction and Safety Act of 1974 and the HUD Manufactured Home Construction and Safety Standards released in 1976 set in place rules for mobile home production that required massive changes in building practices which all but killed the mobile home business as it was known up to that point.

New Manufactured Home being rolled into position

Manufactured Homes

Manufactured homes are predominantly built in a factory setting and once complete, the various parts are transported by truck to the home site for final assembly. Manufactured homes are sold in 3 sizes: Single, double, and triple-wide. Following the Housing Act of 1980, the terminology for all types of movable and/or factory-built dwellings changed to “manufactured homes” in federal law and literature.

While most manufactured homes remain stationary where assembled, it is possible to relocate them if they are constructed on a pier and beam foundation which makes them easier to load and move with minimal stress to the structure.

Example of a pier and beam foundation

Modular Homes

Modular homes are built in large, prefabricated sections in a factory, then transported and pieced together at the home site. While similar to manufactured homes in quality and build process, modular homes are engineered to adhere to state and local building codes. Modular homes are typically anchored to a foundation like a traditional stick-built home and come at a higher price due to added considerations for building code compliance.

A section of a modular home being lowered into place.

Mortgage Lending

For most banks mobile and manufactured homes are perceived as personal property rather than real estate. Even with the manufacturing standards and HUD codes established in 1976, financing options are limited. In addition to construction quality, resale value, and whether the home is on personally owned or rented/leased land are considered as factors that dictate financing. If the land is owned by the owner of the mobile/manufactured home, the bank may also want to know if the property is anchored to a foundation. For mobile and manufactured homes, government-backed loan options like FHA, USDA, and VA are available.

Although modular homes are considered manufactured, they’re constructed to a higher standard set by state and local building code guidelines. The modular home and the land it’s built on and anchored to are sold together like traditional stick-built homes which makes them the most viable financing option for a more diverse group of lenders. While traditional government-backed lending options are available, modular homes have the added potential to qualify for Non-QM (Non-Qualified) loans. Non-QM makes it possible for investors (DSCR), self-employed (1099, bank statements only, CPA Prepared P&L), foreign nationals, ITIN/DACA, Cannabis business owners, and more to qualify for mortgages when conventional loans are not an option.

The post Mobile, Manufactured, and Modular Homes. How Do Lenders View Them? first appeared on MortgageInsider.org.