Fannie Mae makes Mobile Home Loans Cheaper
Boosting Affordable Housing, Fannie Mae is seeking to bridge the gap in affordable housing by making manufactured housing a more acceptable alternative to traditional built-on-site housing. It hopes to do that with its MH Advantage program, which is lowering down payment requirements and lender fees on manufactured housing loans.
The new MH Advantage loans require a 3 percent down payment, which is down from 5 percent in Fannie’s existing manufactured housing loan. Also, Fannie is not charging the 50-basis-point loan level price adjustment that usually applies to manufactured housing loans, the National Mortgage News reports.
To qualify, MH Advantage loan homes must meet specific construction, architectural design, and energy efficiency standards that compare to site-built housing. Eligible homes will be identified by a “Mortgage Financing Notice” or an “MH Advantage” sticker. The sticker means that the home meets the requirements and a borrower could qualify for the MH Advantage financing. But the borrower must still meet certain loan eligibility requirements to be approved.
Government-sponsored enterprises Fannie Mae and Freddie Mac have both been expanding their support for manufactured housing in recent months under a directive issued by the Federal Housing Finance Agency, called Duty to Serve.
Know the Features & Flexibilities
HomeReady mortgage addresses common financial challenges and offers expanded eligibility guidelines, such as:
- Offering a 3% down payment option. First-time and repeat homebuyers can purchase a home with a down payment as low as 3% of the purchase price.
- Allowing co-borrower flexibility. All borrowers do not have to reside in the property. For example, parents, who won’t be living in the home, can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home. Income limits may apply.
- Accepting additional income sources. Rental payments may be considered as another allowable income source to help qualify a buyer (i.e., rental payments from a basement apartment).
Homeownership Education Requirement
We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.