It's a great way to downsize. Or pick up and go somewhere else.
Join the 22 million Americans who now live in manufactured homes. Although financing is difficult in some places, that's not the case in North Dakota. Capital Credit Union makes this lifestyle choice quite practical by allowing you to pre-qualify for attractive rates before you go shopping for your dream home.
If interested in purchasing a manufactured home, prospective homebuyers should scheduled an appointment with a Financial Services Representative to determine what size loan they qualify for based on income and current debts. The appointment, which includes reviewing finance options, down payment requirements and costs involved in obtaining a manufactured home loan, takes approximately 30 minutes.
Step 1: Prequalification
Prospective homebuyers who are beginning to shop for a manufactured home may get prequalified for a loan. It is helpful to bring along pay stubs covering 30 days or W-2 forms. After the manufactured home application is completed and credit file information is collected, the prequalification is good for a limited time.
Step 2: Finding the Home
When the prospective homebuyer has found a manufactured home to purchase, a purchase agreement/bill of sale should be received from the seller, a market evaluation of the property is completed and full loan approval is obtained.
Step 3: The Closing
A 30-minute closing appointment is scheduled with the borrower(s), seller(s), realtor(s), closing agent and Financial Services Representative to finalize the transaction.
In order to purchase a manufactured home, each applicant should provide the following information:
- Employers for the last two years, copies of current pay stubs covering 30 days and/or W-2 forms for the last year
- Complete addresses of all residences for the last two years
- Proof of homeowners insurance coverage
- Proof of down payment and closing cost funds
Terms & Down Payments1
New or used manufactured homes with the following amortization terms:
- 5- or 7-year amortization (no balloon)
- 10-year amortization (6-year balloon): more than $15,000
- 15-year amortization (6-year balloon): more than $50,000
- 20-year amortization (6-year balloon): more than $100,000 and less than 15 years old
Down payment for new and used manufactured homes:
- 15-20% is required based on credit2
- Maximum age of home: 20 years
- Minimum credit score: 680
- Direct deposit of paycheck to a Capital Credit Union checking account
- 2-12 months of taxes and insurance in reserves (escrow account)
- First year of insurance paid at closing
Questions & Answers
Question: Why should I get prequalified?
Answer: You may be better able to negotiate with the seller. When sellers receive an offer from a prequalified buyer, they know that the buyer can secure financing.
1APR ranges from 7.00% - 10.75% depending on term, credit and whether the manufactured home is new or used. Rates are subject to change. A payment example on a $30,000 6-year balloon loan with a 10-year amortization at 8.50% APR would be a monthly payment of $371.96 and a balloon payment of $15,462.26. This payment does not include amounts for taxes and insurance premiums, actual payment obligation will be greater. 2Terms and conditions may vary depending on application and credit history. All loans subject to credit approval.