FHA loan for manufactured home

[Mike]

I've been approved for a FHA loan but the loan officer said that they could give me the loan for a house already built or a manufactured home already on a permanent foundation but not to buy a new manufactured home. I have two options though. Since the land is owned by my father in law, HE could buy the double wide and then sell it to me, with the land, and I could get the loan that way. I don't think he'll do that. Or if I could get the dealership to agree to order, deliver and setup the double wide on a permanent foundation, I could get the loan. AFTER this is completed and appraised. Everything would have to be in writing, of course, as far as the dealership having a guarantee that they would receive the money once the home was delivered. Is this something a dealership would do?

[rmurray]

Some would if they can take a first lien on that free and clear property...if the loan does not close..he owns the property...

NOW...I have NEVER heard of this kind of limit on an FHA loan..obviously he just does not want to goe through the time it takes to get a home built....Try another lender...If you are approved FHA at any lender..you will be approved...new construction of existing home...

[Mike]

"New construction of existing home". Is this a "type" of loan that you can get thru a FHA program?

[rmurray]

No...that is a typist whose mind is much faster than his fingers...I meant to say if you are approved for a permanent FHA loan..you will be able to get a construction loan to build the home with...Sorry..

[Mike]

Can you obtain an FHA loan for a new manufactured home and put it on your land without putting up the land? A home only loan, I guess. I would be placing it on land that was give to me and my wife from her dad but it hasn't been done on paper. And he won't deed it to us if we're going to put it up. I'm thinking that FHA won't do that.

[rmurray]

The program you are asking about is FHA title 1....to my knowledge there are 2 companies out there using this program...One is 21st Century Mortgage...

These loans have very high interest rates...over 12.5%..with low downs...they will NOT finance property improvements...so..wells, septics, electrical all have to be paid cash...the down payment requirement is about 5% and cannot be gifted...terms are for 20 years...Maximum loan is about $45,000....

You would be much better own property...Placing a new manufactured home on someone else's property is something that is nearly impossible to do any more...The FHA loan you had approved should be only about 6.5%...the saving in interest on the home would pay for the property in most market areas...also they will finance all improvements and the 3% down can be a gift from a nonprofit charity which most lenders have a list of the approved groups..

The only way to think about a temporary home on dads property is to buy an older used home and finance it for 5 to 7 years...where you will be building equity quickly and be able to sell it out in about 2 or 3 years..

Good Luck