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Financing Options

FIND HOMES

Intimidated by the home financing process? Don’t worry – Ma Williams can help you every step of the way, answering questions and making sure you are getting the terms that suit your budget and your specific needs.

Obtaining the necessary financing for your manufactured home is easier than you might think. Several loan options are available for borrowers regardless of income or credit status. Click on the links below to discover which loan type is best for you, and for information on interest rates and down payment.

Ma Williams also has lenders who provide construction financing so you don’t have to get a land loan to purchase the property.  We are able, in many cases, to help you save money by rolling all costs into one construction loan with draws to pay the seller of the land.

You will need to make sure your contract for the land purchase is written to provide enough time to find all costs necessary to develop the land, and fund your construction loan.  Please talk to us before you make an offer on land.

At Ma Williams, we’re here to make this daunting task as easy as possible. If you need additional information about any of the available financing options listed below, please contact us.

Construction Loans

  • The use of a one-time close construction loan with a land/home project allows you the ability to finance your project including land, by funding the construction loan once all costs are in for the project and the appraisal is complete to determine value.
  • Construction loan costs are generally higher than the standard conforming loan costs and are determined by your loan amount.
  • Once your construction loan funds, the land seller is the first person to be paid off, so that you the buyer now own the property and can begin preparation for the new home.
  • We offer FHA, Conventional and VA construction loans.
  • If you use a FHA or VA construction loan there are no payments made during the term of construction and no additional loans are required. The FHA and VA loans will finance in interest for the term of construction.
  • If a Conventional construction loan works best for you, you will be responsible for interest only payments on the funds released through the term of construction and no additional loans are required. All funds are disbursed as required with signatures on each draw from both the buyers and the dealer.
  • General construction loan terms range from 4 to 6 months from the date the construction loan funds.

Conventional Loans

  • This type of loan requires that you have open credit lines and good credit.
  • If you have had a Bankruptcy, the lender will require that the Bankruptcy have been discharged for at least three  years and you must have re-established credit.
  • This type of loan is geared toward the buyer with a good credit rating.
  • Conventional loans wil allow financing for buyers who have sold a home in a short sale or had a home foreclosed on, two years from the date of the foreclosure and/or short sale was sold with a 20% down payment.

FHA Loans

  • The FHA loan is a government insured loan which allows FHA underwriting guidelines to be a little more flexible than the conventional loan.
  • FHA loans do have a few more requirements than the conventional loan, such as mortgage insurance.
  • The FHA loan is geared for the buyers with low down payments and average credit.
  • If you have had a Bankruptcy, the lender will require that the Bankruptcy have been discharged for at least two  years and you must have re-established credit.
  • FHA loans will allow financing for buyers who have sold a home in a short sale or had a home foreclosed on, three years from the date the foreclosure or short sale home was sold.

VA Loans

  • The VA loan is a loan offered by the Department of Veteran Affairs to veterans.
  • The VA loan requires an honorable Discharge from the military.

Chattel Loans (Non-Permanent foundations only)

  • Chattel loans are loans for buyers whose home will be placed on a non-permanent foundation.
  • Chattel lenders require a minimum credit score of 590,

  • Buyers with lower credit scored are required to have a larger down.

  • Chattel loans are considered personal property. Your credit score and down payment will determine the interest rate for your Chattel loans; however, they start at about 7%.
  • Although Chattel loans are considered personal property loans, you still do have the choice to either have a 20 year or 25 year term loan in most cases.

Reverse Mortgage

  • A Reverse Mortgage is perfect for individuals over 62 years of age who would like to upgrade their current home with a new manufactured or modular home. The amount of funds available for your project are based on your age, appraised value of your property and current interest rate.
  • Reverse Mortgages have no effect on your Social Security or Medicare. Everybody qualifies! Even if you have bad credit, you qualify. There is no asset or income verification required. And the deed for your property always remains in your name.
  • You will have NO monthly payment, EVER! And there is NO down payment required.

Interest Rates

  • Interest rates for construction loans are generally higher than the standard conforming loan through the construction phase. Once the construction loan rolls over into a conforming loan, the rates are then the same or close to the conforming rates.
  • Interest rates for manufactured homes on permanent foundations are equivalent to stick built home interest rates.

Minimum Down Payment Requirements

  • Conventional loans usually require 20% down
  • FHA loans require 3.5% down
  • VA loans require ZERO down
  • Chattel loans generally require a minimum 5% down. There is an option for 10% which will allow you to option for the maximum loan term of 25 years.

Benefits of owning your own property: using equity as down payment

  • If you already own property the property and are on title, you may be able to finance your home with NO down payment by using the equity in the land as the down payment.
  • How this works: Once you have given the lender all of your cost associated with building your manufactured home, the lender orders an appraisal. The property is then appraised as if the new manufactured home is sitting on the property and permanently attached. Once your lender receives that appraisal, the lender will take the equity in your property and apply that number to your loan as a down payment. This means that you can complete a manufactured home with no money out of your pocket.

Insurance Funds for Fire Victims

  • “Ma” Williams has decades of experience working with insurance companies to help fire victims replace their lost or damaged homes. Many insurance companies work differently and we work with them to make the process equitable and fair for all parties involved in this transaction.
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