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Is Your Home a Manufactured Home or Modular Home? Why That Makes a Difference When Getting Financed

Although manufactured and modular homes are often referred to interchangeably, the differences between the two can have a tremendous impact on your financing options. The reason for this comes down to whether the home can be classified as real property or personal property. In order for a manufactured home to be considered real property, the structure must have a permanent foundation and must be considered a “permanent dwelling.” If not, it is considered personal property (i.e. a modular home).

So how can you tell, which one you have (manufactured or modular)? The best way to think about it is, if you have a mobile home with a VIN number (with or without wheels), then it is a manufactured home and will be classified as personal property as far as the lender and the IRS are concerned. On the other hand, if your home is pre-assembled and is sitting on a foundation, you have a modular home on your hands and you should not have a problem finding traditional mortgage financing.

If you have a manufactured home (think personal property), your financing options may be limited. Due to the home’s legal classification, lenders will often look at it in the same way they look at a car loan. But don’t worry. You still have options; it may just take a little extra digging to find the right lender. Find a lender that specializes in manufactured homes or avoid the hassle of searching for a specialty lender by letting RateGator find the right lender for you.