Manufactured homes can be refinanced by themselves or with the land they sit on.
One of the advantages of a manufactured home is that it is generally less expensive than a stick-built home. This is because these homes tend to be smaller and placed on rented land, such as a trailer park. However, it will still cost tens of thousands of dollars, which means that homeowners of manufactured homes still need access to financing plans for first mortgages and to refinance mortgages at lower rates.
Instructions
1. Make sure that your manufactured home qualifies. Lenders refinancing a manufacturered home expect it to be in good repairs and to be larger than a minimum size (usually 600 square feet). It will need to be on a lot and built later than 1976. These elements will help the home appraise for a greater value so that you will have more equity in your home.
2. Make sure you are financially prepared to refinance. Your credit should be good. The better your credit score, the better the rate you can get. You should also have a solid work history with verifiable income, not have a recent bankruptcy and enough money to pay closing costs.
3. Choose the type of loan you want. Because a manufactured home is separate from the land, you can refinance it with a personal property loan where the home becomes the loan collateral. If the home is tied to the land, then you can get a traditional mortgage. The differences between the two will primarily be in the length of the loans and the interest rates.
4. Apply for the loan of your choice. Michigan manufactured homes can be refinanced up to 95 percent of the appraisal. If you are seeking to get cash back with your refinance or to consolidate mortgages on the home, it can be no more than 80 percent of the appraisal.
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