Requirements of FHA Loan for Modular Home Buyers
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.
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.