manufactured housing. Of course, the more substantial the home, the more likely to be considered for a mortgage. Finally, if the property is in a flood zone, it’s going to be much more difficult to get approved for a loan, if any lender will approve at all. That all being said, there are loan programs for mobile and manufactured home with Fannie Mae, Freddie Mac, FHA, VA, and USDA. There are more requirements and steps to loan approval than there would be for a traditional home. In most cases when it comes to mobile home mortgages, the lender may require a shorter loan term. This is because mobile homes depreciate in value similarly as a car or recreational vehicle, whereas a single-family house will commonly go up in value. Since a mobile home can only go down in value, the lender will want the mortgage paid off sooner than a traditional home. Rural Properties: While the USDA provides very favorable loan terms for houses that are in rural areas, rural properties can still be challenging to finance. One of the main reasons it’s difficult is because it’s harder to get insurance. For example, a rural property is often far away from the local fire station. This puts the home (and the residents) in considerable danger, because if the home catches fire it is more likely that it will not survive. If the lender knows that the borrower will have issues getting insurance, the lender is going to be more hesitant about approving the loan. The loan officer must know how to deal with and resolve those kinds of issues. On the other hand, an advantage of rural properties is that it’s often possible to obtain a loan with the USDA loan program. Fortunately, there are a multitude of great programs for rural properties in the USDA program.
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