How to Get a Reverse Mortgage on a Mobile Home

Table of Content

• How to Choose a Reverse Mortgage Program
• Is It Possible to Get a Reverse Mortgage on a single wide manufactured home?
• Should I Refinance My Mortgage To Pay Off Debt
• How are Reverse Mortgages Beneficial? Are they a Scam?
• Manufactured Home Requirements
• You must meet any additional requirements specified by your lender and HUD
• Is It True I May Actually Buy A New Or Different Home Using A Reverse Mortgage

Unfortunately, reverse mortgages cannot be used to acquire a manufactured home from a dealer, so you must buy it with cash initially or use alternate financing. The key factor in determining whether a property is eligible for reverse mortgage financing is about marketability. The lender needs to feel comfortable that there’s a market for the home if they have to foreclose at any point and become the owner of the property.

Reverse Mortgage Loan Advisors is simply a website designed to offer information about the FHA insured reverse mortgage program. However, the owner of the site is licensed as a reverse mortgage specialist in several states. Anyone that inquires and requests more information may be contacted by the owner of this site.

How to Choose a Reverse Mortgage Program

I have scoured the internet and called lots of lenders, but none want to help. Housing has become extremely costly in the last few years. For quite a few Americans owning a mobile or manufactured home makes good financial sense. Plus, the mobile homes built these days are quite stunning and the quality has become top notch. According to ManufacturedHousing.org, as many as 22 million Americans live in manufactured housing or mobile homes.

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. Before getting a reverse mortgage, you must first pay off and close any outstanding loans or lines of credit that are secured by your home. These can include a mortgage and a home equity line of credit .

Is It Possible to Get a Reverse Mortgage on a single wide manufactured home?

You could have the mobile removed and take out the reverse mortgage or depending on the size of your lot, you may be able to divide the lot so that the land your son's mobile sits on is a separate parcel completely. In that manner, you would still own the land on which it sits and it would not be encumbered by the reverse mortgage. The manufactured home would have to meet all of HUD's requirements as well as there needs to be adequate recent sales of similar properties. The most problems we run into with manufactured homes is that they do not meet HUD requirements, are not common in the area or there are no recent sales for the appraiser to use to determine a value.

If you are unsure if you can, that should be your first step. When all else fails, and your property is just not getting bank lender’s attention, there is always the world of private lending. If you are intending to have a lake or cottage property, check here for those lending rules. Before April 2013 you only needed to pay VAT on the removable items in a mobile home for example, the furnishings. Once your home is appraised and the loan has a preliminary approval, you’ll need an engineer’s certification attesting to compliance with the Permanent Foundations Guide for manufactured Housing.

Should I Refinance My Mortgage To Pay Off Debt

Is it still necessary to own the land under the home? If so, is there any way to get a loan that is NOT FHA approved where you wouldn't need to own the land? My home, which I own outright, is worth quite a bit -- in a beach community and walking distance from the ocean -- but I really need some more income to stay here. As I stated, not every property will qualify for HUD insurance. To reiterate for anyone else reading, you are referring to the manufactured home requirements.

If those requirements are met, the loan takes no longer than any other reverse mortgage and so before I could give you any kind of an honest answer, I would need to know when the last requirement was met. If all the requirements including the manufactured home foundation inspection were all completed 6 months ago, something is definitely wrong. If, however there are no recent, nearby sales, there is no way to determine the marketability or the amount a buyer is willing to pay for such a property and therefore, HUD will not insure the loan.

For HECM for Purchase loans youll need cash to pay the difference between the HECM proceeds and the sales price plus any closing costs. Manufactured homes sit on permanent foundations and are taxed as real property. Unlike mobile homes, their permanence qualifies them for reverse mortgages as long as they meet the remaining HUD/FHA guidelines.

The good news is that there are plenty of lenders that do allow manufactured homes, and the property type is definitely acceptable to HUD—with some exceptions. When you work with experienced professionals, they can help you develop a homeownership strategy that will work best for your situation. If you’re 62 or older and live in a mobile or manufactured home, a reverse mortgage might allow you to convert part of the equity you’ve built in your home into retirement income while staying put in your home. However, mobile homes are not the same as manufactured homes.

If you apply for the reverse mortgage, the appraised value will be established by an independent appraisal conducted by a licensed FHA approved appraiser. South River Mortgage is one of the nation's top reverse mortgage originators. With a focus on reverse mortgages, South River Mortgage's trustworthy advisors are able to help thousands of seniors each year. According to HUD regulations, it is illegal to remove HUD tags or HUD data plates.

For example, you may be able to take out a reverse mortgage to simply lower the payments on your existing primary residence, thus freeing up money to make payments on a conventional loan for a second home. Or, you may be able to use the lump sum proceeds from your reverse mortgage to pay in full for a vacation property. Technically, a mobile home is a factory built home that was constructed before June 15, 1976. These mobile homes are not eligible for the FHA / HUD insured reverse mortgage.

Let's get you the best possible quote on a reverse mortgage. Yes, the very first thing an appraiser will look for is the HUD tag located on the exterior of your manufactured home. And this implies that the home was built on, or after June 15, 1976. Units located in a manufactured condominium complex are not eligible.

The products or services offered herein have not been sponsored or endorsed by any government agency. This website has not been reviewed, approved or issued by HUD, FHA or any government agency. So be sure to talk to a GoodLife expert who can help you figure out if you’re eligible for this government-backed loan.

A “HECM for Purchase” loan requires that you be 62 years of age or older and that the home you are purchasing be your principal residence. You will need to have cash available for the down payment. There will also be closing costs, which will be higher than those with other reverse mortgage loans.

If you put less than 20% down your home will be under more scrutiny by Canada Mortgage and Housing. An FHA Title I loan can be usedfor refinancing a manufactured home as well as purchasing one. Founded in 1976, Bankrate has a long track record of helping people make smart financial choices.