Because manufactured homes are less common than conventional homes or condominiums, homebuyers may need to work with a specialized lender

An EEM works like other FHA-insured mortgages. The bank approves and funds the mortgage and the FHA insures the loan to protect the lender in case of default. You must have an assessment to confirm the improvements are cost-effective, such as showing that the money saved over time with the improvements is equal to or greater than the cost. The cost savings influences the maximum loan amount.

Manufactured Home Programs

FHA offers financing for mobile and manufactured homes and factory-built housing. Homebuyers can opt for a loan for the mobile home only, if they already own the land, or can seek a loan for a mobile home that will be located in a mobile home park.

USDA Loans

The USDA guarantees home loans for low- and moderate-income households living in rural areas. There’s no-down-payment requirement, which means first-time homebuyers can get up to 100% financing on a new home.

Borrowers must live in a USDA-eligible area, but they have the flexibility to purchase an attached or detached home, condo, or modular or manufactured home. Borrowers must make 115% or below of the median household income and must have difficulty getting a conventional mortgage without private mortgage insurance (PMI). There are no credit score requirements, but applicants are expected to demonstrate a willingness and ability to handle and manage debt.

First-time buyers who are purchasing a home in a USDA-eligible area must apply with a lender within the USDA’s approved lender network. The UDSA provides a list of active lenders searchable by state.

VA Loans

Qualified members of the U.S. military, including active duty, veterans, and eligible surviving spouses, can take advantage of VA loans, which are backed by the U.S. Department of Veteran Affairs, to purchase a home.

How the Loan Works

VA home loans are provided by banks and mortgage companies. As the VA guarantees a portion of the loan, lenders can provide better terms, including 100% financing and lower interest rates. VA loans also have the advantage of limited closing costs and no private mortgage insurance (PMI).

Because the VA home loan is a lifetime benefit, you don’t have to worry about using up your benefits within your first home purchase. You can use the guaranty multiple times.

How To Apply

You can apply for a VA loan with the lender of your choice, but first you’ll need to obtain a Certificate of Eligibility (COE) either through the VA’s eBenefits site or by mail. In some cases, your lender may be able to assist you.

After the COE, the lender will request a VA appraisal (assessment) of the house you’re considering, then will decide whether to accept your application and move toward closing on the home.

You may need to pay the VA funding fee. This one-time fee helps to lower the cost of the loan for U.S. taxpayers because the VA home loan program doesn’t require down payments or monthly mortgage insurance. Your lender will also charge interest on the loan in addition to closing fees.

Native American Direct Loans

The NADL program helps Native American veterans and their spouses purchase a home on Native American trust lands. Your tribal organization must participate in the VA direct loan program, and you must have a valid Certificate of Eligibility.

Unlike VA loans, where the lender provides the funds, the VA is the lender for the NADL home loan program. There are credit and income requirements, but these loans don’t require a down payment, there are limited closing costs, and there’s no need for PMI.

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