Lending rates and issues when buying a manufactured home

I’m looking at buying a vacation home that is waterfront. From what I can tell in the listing of a potential property, it is a 3 section manufactured home placed on poured concrete foundation. It’s been in place since 1995 and obviously never going anywhere else. It has been renovated and in great cosmetic condition. My lender says they will finance it but because it is manufactured, it is 500 basis points higher for the rate. I have only talked to this lender who was great from a rate standpoint on 3 refinances I did last year. I understand that trailer and manufactured homes carry higher risk and many lenders wont underwrite them at all. Anyone else have experience with a manufactured home on a solid foundation? Is this the norm? Are there known lenders who are cheaper or more open to defining manufactured with solid foundation? Am I naive and all manufactured get painted with a broad brush?

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What if you are more ignorant, and cant tell (or dont know what it means)?

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The listing itself says manufactured in the deeper details. You are probably on to something though. If I didn’t go out of my way to declare anything or point it out, it might not be caught but at the risk that it pops up as a last minute surprise at closing.

It’s almost certainly going to be discovered up in the appraisal and underwriting process. I guess you could roll the dice and see. If you’ve got an experienced realtor and/or mortgage broker, they’re likely going to know the answer before you apply. I’d definitely avoid any lies on the mortgage application.

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My in-laws bought one back in 2005 and sold it in 2011. I remember them talking about limits in the loan years and having some trouble when reselling it because most companies don’t want to finance used manufactured homes.

I did a quick search and this is an example article, but would recommend you look at that issue with length of loans.

https://www.bankrate.com/loans/personal-loans/how-to-buy-a-mobile-home/#:~:text=Maximum%20loan%20term%3A%20%23Manufactured%20home%20or%20manufactured%20home,home%20and%20lot%3A%2025%20years%20plus%2032%20days.

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Thanks for the article. I saw the actual house today. It’s basically sitting on blocks, not a poured foundation. What’s unfortunate is that the land is waterfront and the real driver for making the house worth well over half a million dollars but that still means the full financed amount is penalized with the higher interest rate even if the house is a small portion of the total value. The house went pending while we were standing in it, despite having an offer review date this weekend, so this is all moot now.