Trying to secure financing for your factory-built home, especially a HUD-code manufactured home can be difficult. This is one area where most home buyers really make some big mistakes. For many, the main attraction to owning a factory-built home is the cost savings compared to traditional building methods. If you’re not careful you could end up spending more than you bargained for.
Did you know that by lowering your interest rate only 1% you could save $17,000 over the course of 30 years? By working with a lender in advance, you will learn which loan packages are best for you. This is an important step; one that is overlooked by many. Suggestion: know what you can afford before you spend countless hours shopping for a home.
The best advice I can give you is - spend some time talking with local lenders in your area before you head out the door to look at factory-built homes. I recommend contacting at least three different lenders. Be sure to ask, “Does your bank specialize in factory-built home loans?” You may need to qualify this by stating which type of factory-built home you’re considering. It’s easier to secure financing on modular homes built to local and state building codes compared to HUD-code manufactured homes.
Understanding your lending options before you look at a particular home gives you the edge when dealing with a builder or dealer. Find a lender you feel comfortable with, one who listens to you and offers practical alternatives for your particular situation.
Most people depend too much on their builder or dealer. Once they have gained your trust with finding a home, you let your guard down and accept the terms of financing without shopping around. Most builders and dealers have relationships with lenders and can arrange financing for you. But, most will have higher fees. So remember you want to shop for a lender, just as you shopped for a home. Some builders do a very good job, but others do not. So, do your homework and be informed. If your builder or dealer can secure the best financing for you, take advantage of it.
In A. M. Watkins book, “Manufactured Houses-Finding and Buying Your Dream Home for Less,” he states, “No matter what kind of financing you seek, the importance of shopping for a good loan at the lowest cost cannot be overstated. You will generally save by obtaining your own loan direct from a lender, rather than financing the deal with your friendly mobile-home dealer who will be delighted to handle the details for you. It’s convenient, all right, but it can also cost you extra money. After all, the dealer must do extra work, so why shouldn’t he or she be paid extra?”
MODULAR
HOME RESOURCES 
The best advice I can give you is - spend some time talking with local lenders in your area before you head out the door to look at factory-built homes. I recommend contacting at least three different lenders. Be sure to ask, “Does your bank specialize in factory-built home loans?” You may need to qualify this by stating which type of factory-built home you’re considering. It’s easier to secure financing on modular homes built to local and state building codes compared to HUD-code manufactured homes.