Manufactured Reverse Mortgage | Mobile Homes HECM Reverse Loan
Have you been trying to find reverse mortgage lenders in your state/city who can actually help you get a reverse mortgage loan on your manufactured/mobile home – to be honest so have we – but recently we have teamed up with a nationwide manufactured HECM lender who is able to help you get into a reverse Loan for your mobile home (the best part we dont require income or credit scores to qualify).
Contact us toll free at 877.700.0534
To Qualify for a manufactured homes reverse mortgage
- must be 62 years old (those 60 days from birthday will also qualify)
- must own the home – be your primary residence (live there 183 days out of the year)
- have equity in the property (equity definition below)
- never have defaulted on government debt (you can not have been late on any government insured or issued debt)
Mobile Homes Manufactured Home Reverse Loan Property Requirements
- At least 400 square feet minimum floor area
- own the land
- Built after June, 15 1976, to the Federal Manufactured Home Construction and Safety Standards as evidenced by an affixed certification label. (seal constructed in conformance with Federal Manufactured Home Construction and Safety Standards.)
- Property is classified and taxed as real estate and is designed to be used as a dwelling with a permanent foundation built to FHA requirements.
- Built and remains on a permanent chassis.
- Mortgage covers both the unit and its site, and has a term of not more than 30 years from date that amortization begins.
- Finished grade beneath home is at or above the 100-year flood elevation.
- acceptable perimeter enclosure (skirting is a must)
- wheels, axels, hitch must be removed
- must be permanently affixed to the property
- “The only movement acceptable for manufactured
homes is from the factory to the dealer and then to the site. Once there, it
must remain. It may be jacked up to have a permanent foundation installed”
Equity needs to be available for the HECM loan to be approved – simply take the amount that your home can appraise for (the value of the home) and subtract from this any outstanding mortgage debt (simply what the home is worth minus any debts)
"Being able to receive a reverse mortgage on a manufactured home has been a real challenge for many seniors - we started many months ago discussions to helping seniors with mobile homes by offering a nationwide service where you can easily get a HECM loan for your manufactured home."
How does a reverse mortgage work for a manufactured property
Reverse mortgages allow seniors who own their homes and have equity built up to access the equity without having to worry about mortgage payments and or selling the home. Seniors with double wide manufactured homes who meet the above qualifications are also able to access their equity with the HECM programs.
This program is insured by the government which adds many safety features for seniors and their heirs/estate. Seniors have had a hard time finding a reverse mortgage for mobile homes thus we decided to simplify the process and offer our free comparison HECM service for manufactured homes as well.
The reason it is called a reverse mortgage is that instead of the borrower paying the bank for a loan – the bank will give the borrower a loan or eliminate any mortgage/debts so that the senior can retire ( with no monthly payments due). This will free up your cash flow – allow you to keep more of your money in your pockets – while keeping ownership of the home and never having to make monthly mortgage payments.
Your heirs also dont have to worry about loosing their chance at owning your home ( as you can leave the property to them ), also since the loan is a non-recourse loan they wont have to pay for the loan balance if it ever exceeds the home’s value ( instead the government pays the lender since the loan is insured by FHA.)
Seniors are responsible for some out of pocket HECM fees and the homes taxes and insurance are continued to be paid by the borrower.
There are 4 different ways for mobile home owners to receive the funds from the equity
1.) lifetime monthly income – you will receive a certain amount for the rest of your life and your spouses – you are responsible only for the homes insurance/taxes/maintenance.
2.) credit line – you will be given an amount of money you can tap into – you can take out as much as you need when you need it
3.) lump sum – you will receive a lump sum cash payment
4.) combination – such as a credit line and lifetime monthly income is one example
The different types of manufactured homes reverse mortgages
HECM Standard – Fixed & Adjustable interest rates – This option provides seniors with the most equity to be released – the fixed rate option is for the lump sum while the adjustable rate option is for the credit line/monthly income option.
HECM Saver- Fixed & Adjustable – overall the HECM saver’s provide lower closing costs by reducing the mortgage insurance premiums from 2% to only .01% – with the lower fees you will not be able to access the same amount of equity as with the Standard HECM (this is a great option is you dont need a lot of equity).
Frequently Asked Questions (FAQ) Manufactured Homes & Reverse Mortgages
What are the up-front fees for a reverse mortgage loan on a manufactured home?
FHA Appraisal fee – $300-$450
HUD counseling fee – $80-$125
Foundation Certificate – $350-$1000 – A engineer has to do the inspection, this is separate from the appraisal.
IBTS-HUD Plate – $75 – this confirms home was manufactured 1976 and after.
Is it doublewide or bigger?
Reverse loans require the home to be larger than a single wide ( single wide manufactured homes will not qualify). Even if yours is classified as a super singlewide, the reverse mortgage will not work. Doublewides or triplewides are needed to make the loan work for you.
Has your home been moved twice (or more)?
If your home was placed on its original site, and then bought used and moved to its current site, it is ineligible for a reverse mortgage. The home must be placed on its original site and left there.
Do you own the land?
Manufactured homes in a park can work, but you need to own the land. If your home is on leased land, or in other words, you pay rent, reverse mortgages probably won’t be the solution for you.
Reverse Mortgage Interest Rates Different for Manufactured Homes?
Interest on the HECM loan is the same for manufactured homes click on the link above and you will be taken to our rates page – you can select both a fixed or adjustable rate.
How do I calculate how much money I can receive from my manufactured home reverse mortgage?
Below is a link for our HECM calculator it works the same way for manufactured homes – the tricky part here is to make sure the actual property meets the guidelines – then if you are ready we can assist you in receiving multiple quotes. The value you receive is based on the value of the home and your age – among other factors.
What happens if my spouse is not yet 62 – we own a mobile home and want a reverse mortgage?
This is a difficult call which needs to be thoroughly analyzed – as the HECM loan would come due if the borrower who is 62 older passes away – for those who are near the age requirement it usually is a safe call to consider one.
Does the HECM Saver apply if I have a manufactured home? HECM saver reverse mortgage
yes, you can qualify for the HECM saver program – this program reduces the upfront mortgage insurance cost, one negative is you have less access to your equity ( the bank wont lend you as much as with a HECM standard.)
Top reverse mortgage banks/lenders who do manufactured loans? we have simplified this search for you by teaming up with one of the few nationwide lenders who can help you in securing your retirement with a HECM reverse mortgage.
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