- FHA Manufactured Home 1x Close loans are unique because they enable one closing for both the construction loan and permanent financing loan on a modular or manufactured home.
- FHA Manufacture Home 1x Close loans qualify the borrower for the construction loan and a permanent FHA loan prior to the start of construction.
- This loan program eliminates the risk associated with the standard 2 time close, where the borrower is qualified for the construction loan and then re-qualified for the permanent FHA loan after the construction of the home is completed.
- During the construction period, borrower is not responsible for any mortgage payments.
- This program has flexible underwriting guidelines and can qualify borrowers with lower credit scores.
- To be eligible for the FHA Manufactured Home 1x close program, borrowers must have a minimum credit score of 580.
- Borrowers must have a minimum down payment of 3.5% of the loan amount.
- All standard FHA limits and requirements would apply to this loan program.
- Borrowers must pay an Upfront Mortgage Insurance Premium (UFMIP) upon closing of the loan, which is added to the purchase price of the home.
- Borrowers must pay an annual mortgage insurance premium (MIP). This premium payment amount is based on the loan’s Loan-to-Value ratio and the timeframe of the loan.
- All FHA loans must be full income documentation and must be owner occupied.
- The FHA Manufactured 1x Close Program is ideal for manufactured home dealers and homebuyers because it eliminates the significant risk associated with having 2 loan closings.
- If you are looking to purchase a manufactured or modular home, this loan program is superior to any other loan program that may require 2 separate loan closings.
- Contact your American Home Free Mortgage expert to help you take the risk of closing on your manufactured home mortgage!
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