Can You Refinance A Manufactured Home?

Yes!  You can refinance a manufactured home that is installed on a permanent foundation and has an HCD-433 form recorded.  The HCD-433 form is the form that converts a manufactured home to real property.  So the manufactured home is taxed just like any other house.  The manufactured home must have been built after June 15, 1976 to be up to current building codes.    

You can refinance a manufactured home to lower the interest rate/payment, to change the loan term (switching to 15, 20, or 30 years), or to pull money out of the equity that you have in your home based on the amount of equity that you have.  All these options are available for manufactured homes just like they are for regular (stick-built) homes. 

Contrary to what some people believe, manufactured homes on permanent foundations do not constantly depreciate like most personal property items.  Manufactured homes will increase or decrease in value based on the real estate market in that area, just the same as regular homes do.  When values go up some homeowners can pull money out of their equity to pay off existing debts, make improvements to their home, lower the interest rate/payment on their loan, or even to take a long-overdue vacation. 

One of the benefits of working with Ma Williams is that the lenders we work with do not offer loans with prepayment penalties.  This means that you have the option to pay ahead to lower your principal balance or to refinance your mortgage loan at any time without any penalty for paying it off early. 

We have seen articles that state that not all manufactured home properties are eligible for refinancing.  That is not an issue for Ma Williams customers that purchase a home from us to be placed on a permanent foundation with the HCD-433 form recorded.  The restrictions on refinancing in these articles apply to only personal property, not real property.  Real property refers to a home permanently affixed to land. 

Should you choose to pursue refinancing your manufactured home on a permanent foundation with HCD-433 recorded, you should have no issue in getting an FHA or Conventional loan as long as you meet the government and/or lender requirements. 

Questions?  We can help.  Talk to us.