• Are Insured or Guaranteed by the Federal Government
  
• Allow for less than perfect credit
  
• Allow for NO or a low down payment on purchases
  
• Have fixed 30 year terms and rates
  
• Is easier to qualify for
  
• Offers more protection during financial hardships
  
• Allow for manufactured home financing
• Allow for refinancing and cashing out up to 100% of the homes value
  

Let’s look at the key features of each type of loan.

VA Loan (Veteran Financing) Let’s begin with the VA loan option. Under the VA loan a qualified veteran can purchase a home or refinance a home up to 100% of its value. NO Down payment on a purchase (100% financing) Refinance up to 100% of your homes value Make home renovation Consolidate debt Rate reduction No pre-payment penalty 30 year fixed rates and terms No monthly mortgage insurance Energy efficiency repair program As a useful hint when you're ready to use your benefits you should have your DD214 and Certificate of eligibility at the ready. HUD Insured Loan Under the HUD Insured loan (FHA) program a person can purchase a home with as little as 3% down, can refinance up to 95% of the homes value for cash out, home renovation or debt consolidation. For a rate reduction only under the HUD Insured program may you go as high as 97% of your homes value. Purchase with as little as 3% down 30 year fixed rates / terms No prepayment penalty Consolidate debt Make home renovations Reduce rate Make Foundation repairs Flexible credit criteria Past Bankruptcy’s allowed Streamlined rate reduction option HUD Insured financing is usually the best option for the majority of home owners due to the make sense underwriting guidelines allow for by HUD. USDA Rural Development Loan (FmHA) Used for purchases only, there are unique advantages of going through a USDA Rural Development loan. No Mortgage Insurance No Cash reserves required No stated maximum loan amount; maximum loan based on repayment ability Loan up to 102% of appraised value allowed – not the lesser of the Sale Price or Appraisal New and Existing homes qualify 30 year fixed rates and terms No Prepayment penalty Subsidized Funds for low income Seller assist allowed Loan amount can include closing costs and repairs up to appraised value New Construction Financing Construction Financing is used as a bridge loan to assist with the purchase of the home, the land and the site preparation. Once the manufactured home is affixed to the land and meets all HUD/ VA/ USDA (FmHA) guidelines then the final government loan is closed. Allows for construction of home and site of your choice Allows for flexibility in purchasing the land and home Expedites Closing Short term / Interest Only loan Processed concurrently with final loan thru FHA, VA, USDA (FmHA). Manufactured Home Frequently Asked Questions What is a Manufactured Home? Manufactured Homes are built in a factory and made to specific building codes as administered by the Department of Housing and Urban Development (HUD). These homes are constructed to meet the Federal Manufactured Home Construction and Safety Standard Act of June 15, 1976. The federal standard regulates manufactured housing design and construction, strength and durability, transportability, fire resistance, energy efficiency and all these codes are to ensure safety and quality for the homeowner. The HUD Code also sets performance standards for heating, plumbing, air conditioning, thermal and electrical systems. Each home is labeled with a tag that is the   manufacturer’s guarantee the home was built according to the standards set by the HUD manufactured housing codes. Example of HUD TAG --- Manufactured homes generally come in two-section units and their dimensions range from 8 feet or more wide and 40 feet long. Manufactured homes can be placed on a basement, cement slab, cement block foundation and or piers with anchors.  Prior to closing and funding on a manufactured home an engineer inspection is required to ensure that the home is properly and safely affixed to the foundation. Thanks to new and innovative designs manufactured homes come in many configurations ranging from the one bedroom home all the way to triple and quadruple wide homes with 5 bedrooms and three bathrooms. The manufactured housing industry is always adding new and exciting designs and innovations to the product line.  The HUD Code for construction makes a manufactured home safe for your family. How long does it take to build a manufactured home? That depends on your manufacturer and the design you’ve chosen, however because the homes are built indoors in a factory the weather is never a delay. It usually takes 2-3 weeks for your home to be manufactured. Once delivered to the site it usually takes 3-4 weeks for the local builder to complete their work on the home and site. What does the local builder need to do before the manufactured home is delivered? Depending on the site and each site is different. The builder needs to make sure the land is correctly graded, install a new foundation, (pier, cement block, cement slab, basement etc.) water (well or public) needs to be in place and ready for connection to the home, sewage (septic system or public) needs to in place and ready for connection to the home, electricity and phone service all need to be ready. Reasons to choose a Manufactured home: High degree of quality control Lack of exposure to the elements during construction Better control of inventory of materials including protection from theft and the effects of rain and snow Volume purchasing discount as well as more efficient use of materials Shorter time to move-in Better quality of construction Homes usually come with a warranty Affordability What are my options when it comes to foundations for my home? The manufactured home must be permanently affixed to a foundation that is suitable for the soil conditions of the site. All foundations, both perimeter and interior, must have footings that are located below the frost line. Any wheels, axels and hitches must be removed. Suitable foundations are: Piers with anchors Cement block around the perimeter Cement slab Full basement Each foundation choice has its benefits such as cost, durability, safety and for future resale. Piers by far are the most cost effective foundation system. The pier foundation can be ready in just 1-3 days and should you desire at a later date to move the home, this foundation allows for easy removal. Piers are set according the manufacturers specifications usually constructed out of cement block with cement poured footing and then attached with an anchoring system from the chassis of the home to the ground. The size and weight of the home will determine the number and spacing of the piers. Cement Slab is a quick, cost efficient and like piers you can easily move the home. Weather protection is limited. Cement Block Perimeter is just like it sounds. Cement block is usually built to about 2-3 feet above ground level and goes all the way around the home. This foundation is more expensive than the piers but offers a closed in crawl space for storage and is much stronger and weather resistant. Resale is much improved. Full Foundation with basement is the most extensive and expensive foundation. It takes more time to build and once the home is set it usually is not movable. The benefits are great strength and durability, added value to your home and increased living space. Residential Lending Services requires an inspection and certification from a licensed engineer which states the foundation system installed, meets HUD guidelines and the home is safely secured to your foundation. What to consider when selecting the site for your home? If you are placing a manufactured home on land that you are purchasing or land you already own, you need to consider how far away the utilities are and the cost of the hook up. If public utilities are not available at your site you need to find out if ground water and subsoil conditions are satisfactory for a well and septic system. These are very important items that need investigation before the purchase of a home. The last thing you want is to have the home delivered and set up on your new foundation just find out you can’t have water, sewage or electricity hooked up! What is the process for delivery of my new home?Usually your home is shipped from the manufacturer directly to the retail sales center for inspection by the retailer (your dealer). If there is damage during transportation it will be repaired prior to delivery at the home site.  If your new home is shipped directly to the site from the manufacturer then transporter is held responsible for the safe delivery of the home. It is very important that you inspect the home prior to it leaving the sales center and then once again when it arrives on site. All damage should be reported immediately to all parties (dealer, transporter, manufacturer). Who handles the installation? Manufacturers will provide detailed instructions for how the new home needs to be installed. The contracted installer will follow those directions as each manufacturer has their own specifications for installation. Many states require installers to be registered and approved. Help hints: Get written proof of the installer’s qualifications. Get a written warranty for the installation. Have a written agreement Review the installation process with the installer If possible be on site the day of install Who connects my utilities? Installation generally includes the connections to water, electricity, gas and sewage. If you do not have this included in your purchase agreement you may need to contract separately to have these connections made. You may also contact the local utility companies to see how they can assist you. For more information and to be approved for a loan please call 1-866-562-6318 to speak with a knowledgeable manufactured home specialist. Checklist Before you purchase your new manufactured home Selection of the home: Call Residential Lending Services at 1-866-562-6318 for your loan approval. Select a reputable retailer. What are your floor plan needs? What options are you looking for in a home? How do you want the exterior to look? How many rooms do you need? What special weather protection needs does your area require? What energy saving options are available? Placement of your home: Do you own the land already? Are you looking for a land and home package? Are utilities easily accessible? Will I need well water and or a septic system? What are the zoning regulations for where I can place the home? Are there any easements I need to be aware of for the site? If on a private road who will maintain the road? Warranty Protection: What warranties are offered by the retailer, manufacturer and installer? Make sure to get the warrantee’s in writing Who performs the service under the warranties? What is NOT covered under the warranties? Installation of the home: Make sure the site is accessible by the trucks transporting the home. Who does the install? Who warranties the install? How long does install take? Who determines proper installation? Will someone inspect the site prior to installation to make sure the site is properly prepared? If something goes wrong on the install who should I call?  Financing: Did I call Residential Lending Services 1-866-562-6218 to make sure my loan is ready?