Refinance a Manufactured Home: Conventional, FHA, VA, USDA

If you own a manufactured home, you can refinance your mortgage through most of the same programs as traditionally built properties. However, there are some unique restrictions for refinancing manufactured homes that you'll want to be aware of.

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Rules That Apply to Most Manufactured Home Refinance Loans

Lenders follow guidelines based on the loan types they offer. Conventional mortgages, as well as those secured by the FHA, VA, and USDA, all have their own requirements. Plus, some lenders may have additional criteria—called “overlays”—in excess of what loan guidelines require.

However, despite the vast loan options available, some standard rules apply to almost all manufactured home refinances.

Unless otherwise stated, all of the refinancing programs covered require your home to be:

• Manufactured (on or) after June 15, 1976

• Classified as real estate and; vehicular title eliminated

• Located on land that you own (some exceptions exist for properties configured as condos or planned unit developments)

• Permanently attached to a foundation that meets local standards

• Never previously installed on another site

• Constructed to HUD standards

• Affixed with a HUD certification label and date plate (alternative verification is allowed in some circumstances)

• In compliance with all other local codes and regulations

Conventional Guidelines for Refinancing a Manufactured Home

Conventional loans are a popular choice for qualified homeowners. You might opt for a conventional refinance if:

• You have very good or excellent credit

• Your debt-to-income ratio is low

• You have at least 20% equity in your home and can avoid mortgage insurance

You can refinance your manufactured home mortgage with a conventional loan on single-unit houses that are your primary residence or second home. Investment properties and manufactured homes with multiple residential units are not eligible.

All homes must also be at least 12 feet wide and have a finished area of at least 400 square feet. Conventional loans following Freddie Mac guidelines have an enhanced minimum requirement of 600 square feet.

As with most conventional loan programs, to qualify for a manufactured home refinance, you must have a:

• Minimum credit score of 620

• Debt-to-income ratio no higher than 45% (50% with other compensating factors)

Conventional Rate-and-Term Refinance for Manufactured Homes

Previously, only multi-width manufactured homes were eligible for conventional rate-and-term loans. However, the guidelines have been updated, and single-wide properties can now also qualify.

With a standard rate-and-term refinance, you can take out a loan for up to 95% of your primary residence’s value. Manufactured homes are also eligible for the Community Seconds and Affordable Seconds programs, which allow for a loan-to-value as high as 105%.

For rate-and-term refinances on second homes, you can borrow up to 90% of the property’s appraised value.

Conventional MH Advantage and CHOICEHome Refinances

The Fannie Mae MH Advantage and Freddie Mac ChoiceHOME programs are made for multi-width manufactured homes built to a higher level of quality than basic HUD standards.

These properties are more spacious than typical manufactured homes and are designed more similarly to site-built houses. They generally have additional characteristics and features, including:

• Attached garages or porches

• Aesthetic roof designs with eaves and a higher pitch

• Quality building materials designed for enhanced durability

• Adherence to energy efficiency standards

MH Advantage and ChoiceHOME refinance loans are eligible for a loan-to-value ratio as high as 97%. Properties that qualify for these mortgages also benefit from standard-priced mortgage insurance and lower rates.

Conventional Cash-Out Refinance for Manufactured Homes

You can get a conventional cash-out refinance for multi-width manufactured homes that serve as your primary residence. Single-wides, as well as second homes and investment properties, are not eligible for cash back at closing.

Lenders allow for cash-out refinances on manufactured homes for up to 65% of the appraised value. However, you must have owned your home and its land and had your existing mortgage for at least 12 months to qualify.

The exception is if you're refinancing a property you own outright, in which case you must have still been on the title for at least six months.

FHA Guidelines for Refinancing a Manufactured Home

Backed by the Federal Housing Administration, FHA refinances are a good choice for borrowers who may not qualify or just barely meet the minimum requirements for conventional mortgages.

You might choose to apply for an FHA refinance if your:

• Credit score is between 500 and 620 (or even higher)

• Debt-to-income ratio is between 45% and 50%

• Current mortgage is secured by the FHA, and you're eligible for a streamline refinance

FHA manufactured home refinances are available for single-family primary residences at least 400 square feet in size. The house must be permanently attached to a foundation with its towing hitch and running gear removed.

The foundation is required to be situated above your area's 100-year return frequency flood elevation. If it has a basement, it needs to be above that elevation level. Your home must also have been permanently attached on your site for at least 12 months before you can do an FHA refinance.

One word of caution: if you’ve made any additions or major changes to your manufactured home, you may need a local government agency or structural engineer to certify that its structural integrity has not been compromised.

Plus, to qualify for a non-streamline FHA refinance loan, you must have a:

• Minimum credit score of 500 (some lenders may have higher requirements)

• Debt-to-income ratio no higher than 50%

FHA Streamline Refinance for Manufactured Homes

You may be eligible for a streamline refinance if the FHA secures your current manufactured home mortgage. This allows you to simplify the refinancing process by eliminating the need to:

• Undergo an in-depth credit check

• Reverify your income

• Schedule and pay for a home appraisal

Only current FHA loans can qualify for a streamline refinance; borrowers with other loan types must apply for an FHA cash-out refinance.

FHA Cash-Out Refinance for Manufactured Homes

The FHA cash-out refinance program for manufactured homes allows you to borrow up to 80% of your current appraised value. This makes it an attractive option for homeowners with limited equity or who need more funds than a conventional cash-out would allow. FHA cash-out refinances are available irrespective of your current loan type.

VA Guidelines for Refinancing a Manufactured Home

VA loans are guaranteed by the Department of Veterans Affairs and are available to qualifying service members, veterans, and some surviving family members. You must have a Certificate of Eligibility to take out a VA mortgage. Still, rates are often comparable to or better than conventional options.

Refinancing a single-wide manufactured home requires a minimum floor area of at least 400 square feet. For a double-wide, that figure increases to 700 square feet.

In addition to being permanently attached to your site's foundation, VA guidelines also specify that this process must be completed in accordance with local code to “withstand supporting loads and wind-overturning loads.”

Unlike most loan types, VA guidelines do not restrict manufactured homes previously installed elsewhere. However, while it's possible to refinance a moved manufactured home with a VA loan, many lenders have overlays prohibiting it.

To qualify for a non-streamline VA loan, you must also have a:

• Minimum credit score of at least 580 (VA guidelines set no minimum, although lender criteria generally range from 580 to 620)

• Debt-to-income ratio no higher than 50% (VA guidelines set no maximum, although lender criteria generally range from 41% to 50%)

VA Streamline Refinance for Manufactured Homes

If you currently have a VA loan for your manufactured home, you may be eligible for a low-document rate-and-term refinance, referred to as an Interest Rate Reduction Refinance Loan (IRRRL). This process allows you to reduce your interest rate and monthly payment without paystubs, W-2s, tax returns, bank statements, or even an appraisal.

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VA Cash-Out Refinance for Manufactured Homes

You can also pay off an existing manufactured home loan (such as replacing dealer financing) via a cash-out refinance and include the cost of purchasing a lot. With a VA mortgage, you can cash out up to 100% of the property's value, although some lenders may set the limit at 90%. Shop around if you need the full 100% loan.

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USDA Guidelines for Refinancing a Manufactured Home

USDA loans are designed for moderate-income homeowners who live in designated rural areas. Purchase loans are available for manufactured homes, but only existing mortgages secured by the USDA are eligible for their refinance program.

If you currently have a USDA loan, you may be able to refinance your mortgage with a Streamlined-Assist. Like the FHA and VA no-doc refinances, the USDA Streamlined-Assist allows you to reduce your mortgage rate or change your loan terms without requalifying or obtaining an appraisal.

To be eligible to refinance your USDA mortgage, you must have made your past twelve payments on time and be able to realize at least a $50 monthly savings by refinancing.

Frequently Asked Questions About Refinancing a Manufactured Home

Here are answers to some of the most commonly asked inquiries.

What Does It Mean for My Manufactured Home to Be Titled as Real Estate?

Builders and dealers generally title manufactured homes as personal property, similar to automobiles. However, the home must be titled as real property to qualify for most mortgage types. This is generally accomplished by permanently attaching the house to a suitable foundation and filing an Affidavit of Affixture with your county clerk.

Can I Refinance a Manufactured Home if I Don’t Own the Land?

In most cases, no. Conventional lenders and most government-backed programs will only approve a loan if you own the land to which the manufactured home is permanently attached. However, the FHA Title I program allows for loans even if you don’t own the property, albeit at reduced limits. As of March 2024, you can refinance a manufactured home without land for up to $105,532 for a single-wide and $193,719 for a multi-wide.

Where Can I Find My Home’s HUD Certification Label and Date Plate?

All conventional and government-backed lenders will require your home to have a HUD certification label and date plate. The certification label is a 2" by 4" aluminum tag attached to your house's exterior, which includes the identification number for your manufactured home. Multi-wide properties may have multiple labels. The date plate is a sheet of paper located inside the home, typically near the electrical panel, in the utility room or closet, or inside a cabinet. It contains information about your home's build, features, and ratings.

Discover Your Options for Refinancing a Manufactured Home

Refinancing a manufactured home is similar to getting a loan on any other property, albeit with a few more considerations. If your house qualified for a mortgage initially, it will likely be eligible for a refinance unless significant alterations have been made.

Apply with an experienced lending company today to discover exactly which manufactured home refinance programs you qualify for.

Check your eligibility for a manufactured home loan refinance.