Financing for new manufactured homes is a vital aspect of the buying process. For most homeowners, searching for a reliable financing option includes searching for available manufactured loans. In such housing loans, there are several key down payment options to consider and it varies greatly depending on the type of loan selected by the borrower.
Numerous zero down payment or low down payment programs exist for loans and buyers are qualified for availing such options in some cases. However, it is highly important that proper research is carried out regarding this down payment options before purchasing the manufactured home for sale. Described below are some of the key zero down payment options to consider while buying a manufactured home.
VA Loan or USDA Loan
VA loan (Veteran’s Administration) or USDA loan (United States Department of Agriculture) are the two common products having zero down payment options. The main criteria for qualifying for a VA loan are that the borrower must be either a Veteran or active in the US Military duty. For this, the borrower should produce the necessary Certificate of Eligibility and prove their credentials to partake in the program.
For checking their eligibility, Veterans can contact their local VA field office. For availing a USDA loan, the borrower needs to qualify for the various income limitations. Moreover, the property must also be situated in a USDA rural boundary area.
FHA loans (Federal Housing Association) is the other low down payment option to consider for purchasing a manufactured home for sale. With the only requirement of 3.5 percent down, gifted funds, gifted land, or equity can be included in the down payment. When considering the debt ratio and credit history, the guidelines for FHA is more flexible as compared to other investor guidelines. Moreover, the borrower must pay the upfront insurance premium and a monthly premium in the FHA.
Another major zero down payment option is the existing land equity. When purchasing a new manufactured home for sale, most of the borrowers consider the replacement of the existing older home on the property. However, the borrower can use the accumulated equity on the property for covering the entire down payment. The seller also gives into the closing costs in some cases, which can result in the borrower to acquire the home loan without spending their money.