A very common question in the reverse mortgage world is, “ can I get a reverse mortgage on a manufactured home ”. Simply put, the answer is “maybe”. So the real question for you is probably
“ can I get a reverse mortgage on MY manufactured home ”.
It will be helpful to distinguish the type of home you have. Often times people confuse a manufactured home with a modular home. One main reason for this (in my opinion) is that the stigma associated with a modular home is a nicer one than the stigma associated with a manufactured home.
The Four Types of Manufactured Homes
Technically, there are not four types of manufactured homes. However, there are four types of factory built homes. I’m referring to homes not built or framed on the home site out of wood, stucco, etc.
The first type is a manufactured home built before June 1976
While this is similar to what is today technically called a “manufactured home”, it’s a “mobile home”. For all intents and purposes, a home built in January of 1976 might LOOK just like one built in July of 1976. However, the main difference is that if built after June of 1976, they had to be built to HUD standards. If the manufactured home was built before June 1976, it won’t have HUD tags. Can you get a reverse mortgage on a manufactured home (mobile home) built before June 1976? Sorry, the answer here is “no”. HUD will not insure a reverse mortgage for a mobile home.
The second type is a manufactured home built after June 1976 (Doublewide).
This should have the HUD tags on it. This is a manufactured home (as opposed to modular, or mobile). So, you might be wondering “ Can I Get A Reverse Mortgage On A Manufactured Home built after June 1976”. The answer is “yes”, you probably can get a reverse mortgage for your doublewide manufactured home.
Here are the basic guidelines:
- Home should be built after June, 1976
- House must be detitled so it’s no longer taxed as personal property.
- Must be taxed as real property.
- The tongue and axle are removed & must be on a permanent foundation.
- Can’t be in a flood zone.
- Can’t have been in more than one location.
- Your home should have HUD tags.
- Must have at least 400 square feet of living area.
- There must be at least 2 comparable sales that are manufactured homes (can be outside the neighborhood if needed).
- Must have permanent utilities installed.
NOTE – not every lender will fund a loan for a manufactured loan. If one lender tells you no, check other lenders if your home meets the criteria above. Also, some lenders will only do newer manufactured homes. For example, I have seen some lenders that will only do it if it was built in 1990 or more recently.
The third type is a manufactured home built after June 1976 (Single wide).
This type of home should also have a HUD tag on in. The main difference between a single wide and a double wide pertains to the question ” Can I Get A Reverse Mortgage On A Manufactured Home if it’s a single wide built after June 1976?”.
The answer is still “yes”. It should meet the same criteria as above. However, even less lenders will do this type of loan. That being the case, you just might have to shop around a little more to find a lender that will do it.
- The fourth type of manufactured home is actually called a modular home.
Modular homes are houses that are manufactured in a remote facility and then delivered to their intended site for assembly.
Can I Get A Reverse Mortgage On A Manufactured Home if it fits the definition of a modular home? The answer is “yes”. Almost all lenders that do reverse loans will do a loan on a true modular home. Normally, they are treated more like a regular, stick built, single family residential home.
Quirks in terms of getting a reverse mortgage on a manufactured home:
- A foundation inspection is required to ensure the home and foundation meet FHA standards. This isn’t a big deal, but it does add about $500.00 in additional cost. Sometimes this can just be invoiced so that you can pay that through closing.
- Also, the appraisal cost about $100-150.00 more than for a regular SFR appraisal.
A reverse mortgage can be a great way to access some extra money that doesn’t require a monthly payment like a regular mortgage.
If you are still wondering ” can I get a reverse mortgage on a manufactured home ” or have any other questions email us at Info@ReverseMortgageLoanAdvisors.com
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