Facts about FHA Loan Every Modular Home Owners Need

Posted by Legendary Homes on April 10, 2015 in Modular Homes, Mortgage Lenders with Comments Off

Here are some facts about FHA loan for modular homes.

An FHA home loan allows a low down payment

Conventional lenders usually require a 20% down payment; you can pay less but are then required to buy private mortgage insurance for the lender’s benefit. That can add to your monthly payment.

FHA loans are easier to qualify for

Lenders who work with the FHA are willing to give you a break because the government is standing behind your FHA home loan. That gives first-time modular home buyers a real opportunity, as well as residents of disadvantaged neighborhoods, who can find obtaining a mortgage a real challenge.

FHA loan for modular homes has lower interest rates

In addition to lower down payments, FHA-guaranteed loans generally have lower interest rates. Since the FHA does not actually provide the financing or determine the interest rates of the loans it backs, the rate you pay for an FHA home loan will be negotiated with an FHA-approved lender.

FHA Loan can help you make home repairs and upgrades

An FHA loan or refinance is possible. To start, the Energy Efficient Mortgage (EEM) program can help you lower your utility bills by financing the cost of adding energy efficient improvements to your home. But other home improvements can be financed through an FHA insured loan, as well.

FHA loan has lower closing costs

Anyone that has purchased a home knows there are a lot of fees due at closing. Appraisal fees, inspection, credit report and broker fees and commissions, origination charges – it can be a mighty long list. While the FHA doesn’t regulate or determine fees, the closing costs for an FHA loan are generally lower than with a conventional mortgage.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Pros and Cons of FHA Loan for Modular Home Construction

Posted by Legendary Homes on April 9, 2015 in Modular Homes, Mortgage Lenders with Comments Off

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). It has come a long way to help home buyers.

An FHA loan has a number of pros and cons that you need to consider.

Pros of FHA Loan

Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. An FHA down payment of 3.5 percent is required. Borrowers who cannot afford a traditional down payment of 20 percent or can’t get approved for private mortgage insurance should look into whether an FHA loan is the best option for their personal scenario.

Another advantage of an FHA loan is that it can be assumable, which means if you want to sell your home, the buyer can “assume” the loan you have. People who have low or bad credit, have undergone a bankruptcy or have been foreclosed upon may be able to still qualify for an FHA loan.

Cons of FHA Loan

You knew there had to be a catch, and here it is: Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one is paid in full upfront – or, it can be financed into the mortgage – and the other is a monthly payment. Also, FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing, FHA Loan

Requirements of FHA Loan for Modular Home Buyers

Posted by Legendary Homes on April 8, 2015 in Modular Homes, Mortgage Lenders with Comments Off

FHA defines a modular home as “a structure that is transportable in one or more sections. And they set a number of requirements to successfully have a FHA loan.

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. The following are the requirements on how to apply for FHA loan.

Residency Requirements

The person applying for FHA loan for his modular home should have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state. Remember that it new loans are only available for primary residence occupancy.

FHA Loan Down- payment

Must make a minimum down payment of 3.5 percent. The money can be gifted by a family member.

Good Credit Score

Minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent. Typically you must be two years out of bankruptcy and have re-established good credit. Exceptions can be made if you are out of bankruptcy for more than one year if there were extenuating circumstances beyond your control that caused the bankruptcy and you’ve managed your money in a responsible manner.

Modular Home Complies with Standards

Also, an FHA loan requires that a property meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Why Finance your Modular Home with FHA Loan

Posted by Legendary Homes on April 7, 2015 in Modular Homes, Mortgage Lenders with Comments Off

FHA loan is not perfect, but they are a great fit in some situations especially with modular home financing. The main appeal is that they make it easy to buy property, but don’t forget that those benefits always come with tradeoffs. Here are some of the most attractive features:

Lower Down Payment

FHA loans allow you to buy a modular home with a down payment as small as 3.5%. Other loan programs generally require a much larger down payment.

It’s easier to use gifts for downpayment and closing costs. In addition, sellers can pay up to 6% of the loan amount towards a buyer’s closing costs. You’re most likely to benefit from that in a buyer’s market, but those do come around from time to time.

Lower Cost Interest Modular Home Loan

A modular home buyer can “take over” your FHA loan if it’s assumable. That means they will pick up where you left off – benefiting from lower interest costs. Depending whether or not have changed by the time you sell, the buyer might also enjoy a low interest rate that’s unavailable elsewhere.

A Chance to Reset

If you have recently come out of bankruptcy or foreclosure, it’s easier to get an FHA loan than a loan that does not come with any government guarantee (two or three years after financial hardship is enough to qualify with FHA).

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Modular Home Financing: VA Loan vs. FHA Loan

Posted by Legendary Homes on April 6, 2015 in Modular Home Builder with Comments Off

VA loans are similar to FHA loans in that the Department of Veterans Affairs isn’t the group which makes the actual modular home loan. Rather, the VA insures the loan — or, rather, a portion of the loan, to be exact.

VA Loan for Modular Home

The VA’s loan insurance is known as the VA guaranty, and it gives U.S. lenders the confidence required to make 100% LTV mortgages to qualified VA borrowers.

Veterans can use their hard-earned modular home loan benefits to purchase condos, single-family residences, and even multi-unit properties so long as they plan to live in the home as their primary residence.

Military borrowers wanting to use the VA loan program for anything other than a primary residence will find lenders unwilling to make such loans. The lone exception is for the refinance of a home which was previously owner-occupied, but which is now a rental home.

The VA will allow homeowners who once lived in a home which is currently a rental to refinance using the VA Streamline Refinance.

FHA Loan

The Federal Housing Administration (FHA), provides mortgage insurance on modular home loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories.

FHA insured loans require mortgage insurance to protect lenders against losses that result from defaults on modular home mortgages. FHA lending limits vary based on a variety of housing types and the state and county in which the property is located.

Before you start the loan process, you’ll want to be prepared for the loan application. Have your information organized and ready for your loan officer. Be prepared to pay for property appraisal and a credit report. While FHA defines which closing costs are allowable as charges to the borrower, the specific costs and amounts that are deemed reasonable and customary are determined by each local FHA office.

Today the mission of the FHA includes helping borrowers get amounts they qualify for, and assisting lenders by reducing their risk in issuing loans.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Steps to a Veteran’s Guaranteed Modular Home Loan

Posted by Legendary Homes on April 5, 2015 in Modular Homes, Mortgage Lenders with Comments Off

The main purpose of the VA loan program for modular home construction is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is competitive with the rate charged on other type of mortgage loans.

The following steps should help you to understand what VA can and cannot do for the modular home purchaser.

Find the property suitable for your needs.

Go to a lender, and apply for the loan.

Present your discharge or separation papers relating to latest period of service and/or a Certificate of Eligibility.

Property is appraised by approved appraiser.

Estimate of property’s reasonable value is determined.

If application is approved, you get the loan.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

Key Factors to Have a VA Loan for Modular Home

Posted by Legendary Homes on April 4, 2015 in Modular Homes, Mortgage Lenders with Comments Off

VA loan for a modular home approval may be easier than many think. Understanding the key factors help you on the VA home loan process.

VA Entitlement

Borrowers must, first and foremost, be eligible for VA loans for modular home. This means they must have satisfied the service requirements and have enough “entitlement” available to be considered for a VA loan. Entitlement is a word used to refer to the amount the VA will guarantee for a particular veteran borrower.

Modular Home Property Eligibility

The lender’s handbook states that VA modular home loan benefits are to be used mainly for owner-occupied properties. The VA lists single-family homes, VA-approved condos, townhouses and multi-family modular homes as properties generally eligible for VA financing. The VA also guarantees the financing of modular homes if they are attached to a permanent foundation; but not all lenders offer VA loans for modular homes.

Length of Occupancy

By law, VA borrowers must occupy the homes they finance. VA borrowers must verify that they will occupy their homes within a reasonable time. For most, this means within 60 days after closing. Borrowers who are deployed away from home may receive an extension of up to 12 months. A spouse is the only relative that can satisfy the occupancy requirement in a VA-eligible borrower’s stead.

Income & Credit

VA-eligible borrowers must qualify for the loans they obtain. Veterans must have steady and ample income and satisfactory credit. Lenders are given some flexibility to decide whether a borrower is a safe credit risk within VA guidelines. VA-approved lenders may set their own credit score minimums. The VA recommends borrowers have no more than 41% debt-to-income ratio and at least enough residual income to cover typical living expenses.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

VA Loan Criteria for Modular Home

Posted by Legendary Homes on April 3, 2015 in Modular Homes, Mortgage Lenders with Comments Off

A criteria or guideline is always given whenever the construction of a modular home is financed by a lender or bank. The following criteria pertains to the criteria when applying for a VA loan for modular home construction.

Modular Home must be Classified as Real Property

It’s possible for modular homes to be classified as a vehicle, or personal property, instead of real property. When the home is transported to the site, it needs a vehicle’s license to travel upon public roads, much like a travel trailer would.

Modular Home must be Affixed to a Permanent Foundation

According to the VA lender’s handbook, the modular home can’t simply be left on the wheels it was transported on. It must be placed on a permanent foundation.

A foundation not only supports the weight of the modular home, but also helps the structure withstand strong wind. Without a good foundation, the home could topple. In some areas of the country, VA even requires hurricane ties to be installed on the home per local code.

Conforming to Minimum Property Requirements

According to the VA handbook, the modular home must be at least 10 feet wide and 400 square feet if a single wide, or 20 feet wide and 700 square feet if a double wide to be eligible for financing. There is no age restriction for the manufactured home.

Beyond manufactured home-specific requirements, VA sets forth general Minimum Property Requirements for any home that is financed with a VA loan. The overall goal of MPRs is to ensure that the veteran is buying a home that is livable and free from major defects.

Conforming to Local Building Codes

Counties, cities, and states have building codes that all structures must adhere to. For example, a county may require a certain amount of insulation in the home, or various standards for electrical wiring. The manufactured home will have to adhere to these standards as well.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

FAQ about VA Loan for Modular Home

Posted by Legendary Homes on April 2, 2015 in Modular Homes, Mortgage Lenders with Comments Off

There are a number of frequently asked questions that concern the VA loan. Legendary Homes Inc of southern Michigan gives you some of these questions with their corresponding answers;

How much is the guaranty?

Veterans Affairs will guarantee up to 50 percent of a VA loan up to $45,000. For loans between $45,000 and $144,000, the minimum guaranty amount is $22,500, with a maximum guaranty, of up to 40 percent of the loan up to $36,000, subject to the amount of entitlement a veteran has available. For loans of more than $144,000 made for the purchase or construction of a home or to purchase a residential unit in a condominium or to refinance an existing VA-guaranteed loan for interest rate reduction, the maximum guaranty is the lesser of 25%. This figure will change yearly.

Is $36,000 the biggest loan a veteran can get?

No. You may generally borrow up to the reasonable value of the property or the purchase price, whichever is less, plus the funding fee, if required. For certain refinancing loans, the maximum loan is limited to 90 percent of the value of the property, plus the funding fee, if required.

What is the maximum VA loan?

There is no maximum VA loan, except that the loan cannot exceed the lesser of the appraised value or purchase price, plus VA funding fee and energy efficient improvements, if applicable. However, lenders usually won’t make a no-downpayment loan larger than $417,000 ($625,500 in Alaska, Hawaii, Guam, and U.S. Virgin Islands) due to secondary market limitations.

Must the VA loan be repaid?

Yes. A VA guaranteed loan is not a gift. It must be repaid, just as you must repay any money you borrow. The VA guaranty, which protects the lender against loss, encourages the lender to make a loan with terms favorable to the veteran.

Does VA make any loan directly to eligible veterans?

Yes, but only to Native Americans on trust land or to supplement a grant to get a specially adapted home for certain eligible veterans who have a permanent and total service-connected disability(ies).

How are VA loans processed?

There are two ways a lender may process VA home loans: “prior approval” or “automatic.” When the loan is processed on a prior approval basis, the lender takes your application, requests VA to appraise the property, and verifies your income and credit record. All this information is put together in a loan package and sent to VA for review. If VA approves the loan, a commitment by VA to guarantee the loan is sent to the lender. The lender then closes the loan and sends a report of the closing to VA. If the loan complies with VA requirements, VA issues the lender a certificate of guaranty.

In automatic processing, the lender still orders an appraisal from VA, but has the authority to make the credit decision on the loan without VA’s approval. The biggest difference between prior approval and automatic processing is the time saved by avoiding the need to await VA’s approval before loan closing.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing, VA Loan

How to Build a Modular Home in Michigan with a VA Loan

Posted by Legendary Homes on April 1, 2015 in Modular Homes, Mortgage Lenders with Comments Off

Building your dream home is a possibility with a VA modular home loan. But it isn’t always an easy road.

This no-down payment program allows qualified borrowers to use their VA entitlement to obtain a mortgage for new construction. The issue is that it can be challenging for VA borrowers to locate a lender willing to issue a construction loan. The VA doesn’t actually make home loans; rather, it basically insures them. It’s up to individual VA-approved lenders to determine what kind of loans they’ll issue.

What’s increasingly common is that veterans need to secure a modular home construction loan from a builder or a local lending institution. As the home building process wraps up, qualified borrowers can then refinance that short-term construction loan into a permanent VA mortgage.

Getting a Modular Home Construction Loan

Because it’s tough to find VA loan lenders out there willing to pay the up-front costs of construction, many veterans wind up using a home builder or a local financial institution. That can present hurdles like a down payment, which may be required to secure a construction loan. You can and should talk with as many builders and local banks as possible. Look for the best possible terms out there in terms of down payment, closing costs and more.

Some builders may have programs or deals especially for veterans and military families to build a modular home through VA loan. Be sure to do your homework on the company and ensure it’s a legitimate builder with a track record of success and satisfied homeowners.

You can also check with lenders to see if they’ll actually do a true VA loan, where the lender pays draws to the builder as the project progresses. But know going in that you might struggle to locate one. Like so many other lenders, Veterans United does not make construction loans to build new homes.

You’ll have considerably better luck locating VA lenders willing to turn that short-term construction loan into a long-term VA loan. This is something Veterans United can help you with.

In case you still have questions about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile, you can check our modular home price sheets by signing up to our blog.

Topic: Modular Home Financing

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Legendary Homes Inc
10197 S Meridian Rd US 127
Clarklake, Mi 49234
(517)206-2435
http://LegendaryHomesInc.com
Todd_Rutledge@LegendaryHomesInc.com

Located in Jackson County Michigan