Realtors, Consider Manufactured Homes for your Buyers

In the state of Wisconsin there are many manufactured homes and in the counties that I focus on, Adams and Juneau, manufactured homes are a large percentage of the homes available. Many of these homes are vacation homes and because of the low purchase cost and the ease of constructing, it just made sense for the owners to purchase a manufactured home.

But, this year, there has been a stigma attached to these homes, primarily by the Home Mortgage Insurance companies (PMI) who are not offering mortgage insurance on loans with less than a 20% down payment. Because mortgage insurance is not available, lenders in Wisconsin are not offering conventional mortgages; which all makes sense. However, mortgage loans are available for these properties through FHA and VA. These loan programs are available for no down payment (VA) or as little as 3% down for a FHA loan.

My point here is that if your buyer is interested in a manufactured home there is no reason to turn them away, which is what some lenders and Realtors are doing. It does take more time to find a lender who participates in a VA or FHA approved program, but the money that your buyer can save on these properties is well worth the effort.

Part of the issue with manufactured homes was the quality of construction. However, homes built after 1976 must have conformed to more stringent HUD building codes and these properties are very well built. Homes that have been built recently have 6x6 stud construction, improved electrical and plumbing and are very attractive real estate options. So, when you find a manufactured home on your property search don't automatically skip it. Do your buyer a favor and take a closer look.