A reverse mortgage can provide homeowners with additional income. However, homeowners do not make payments to the lender with this type of mortgage, and the loan is not due until after you move or die.
With a reverse mortgage, homeowners surrender equity in their house in exchange for payments from the lender, which may be advantageous for retirees seeking to augment their income.
If you are a senior (62 years or older) who owns a manufactured or mobile home, you may be wondering if a reverse mortgage is an option for you. The short answer is that they may be qualified for a reverse mortgage for manufactured homeowners While it is possible to obtain a reverse mortgage on manufactured houses, mobile homes are not the case. It may be a little perplexing. After all, mobile and manufactured homes are frequently conflated.
In this article, we will explain the distinction and walk you through the process of obtaining a reverse mortgage on your manufactured home.
The Distinctions Between a Manufactured Home and a Mobile Home
The terms manufactured home and mobile home are frequently used interchangeably. However, there is a significant distinction between the two. That is
“The dates of their construction.”
The Manufactured Home Construction and Safety Standards Act was enacted on June 15, 1976. This statute established new guidelines for the manufacture of mobile houses.Although the terms “mobile home” and “manufactured home” are sometimes used interchangeably, it is technically acceptable to refer to dwellings of this type constructed after 1976 as manufactured homes. These homes adhere to the new government regulations.
Homes constructed before the passage of the law are more accurately referred to as mobile homes. These residences are typically smaller and less secure, with fewer of the amenities found in recent builds. Houses constructed under the law bear a red marking on the exterior referred to as the HUD tag. In brief, you can apply for a reverse mortgage loanif your home qualifies as a prefabricated home, which means it was constructed after 1976.
While mobile homes are not typically eligible for reverse mortgages, some manufactured houses have been certified by the Department of Housing and Urban Development (HUD) and meet Federal Housing Administration (FHA) standards.
Is It Possible to Obtain a Reverse Mortgage on a Mobile Home?
Since the phrase “mobile home” refers to manufactured homes constructed before June 15, 1976, a reverse mortgage is not available for a mobile home. Such houses do not have the HUD stamp, which makes them ineligible for financing under the terms of the Federal Housing Administration's criteria. On the other hand, the reverse mortgage process should be straightforward if your property was built after that period and you meet all of the other conditions. The Federal Housing Administration (FHA) insured home equity conversion mortgage is the most prevalent type of reverse mortgage for prefabricated homes. It is the Department of Housing and Urban Development (HUD) that regulates these mortgages. As an alternative to a reverse mortgage, several states may offer different types of loans that can differ significantly from one another.
In order for a manufactured home to qualify, a manufactured home must first be evaluated in order to be considered for financing. Home appraisers are trained to pay attention to and report on a wide range of building faults.
