Conventional Manufactured Home Loans
Flexible Financing with Competitive Rates
Traditional financing with flexible terms • MH Advantage program available • 3-5% down payment options
Fannie Mae MH Advantage Program
The MH Advantage program recognizes that today's manufactured homes are built to higher standards and deserve financing terms closer to site-built homes. This program offers enhanced benefits for qualifying manufactured homes.
MH Advantage Benefits:
MH Advantage vs. Standard Conventional
Does Your Home Qualify?
MH Advantage requires specific construction features and standards. We can help determine if your chosen home qualifies for these enhanced benefits.
When Conventional Loans Make Sense
Higher Income Borrowers
If you exceed USDA or FHA income limits, conventional may be your best option
Investment Properties
Conventional loans are the only option for manufactured home investments
Second Homes
Planning a vacation or weekend home? Conventional financing is available
Higher Loan Amounts
Need to borrow more than government loan limits? Conventional has higher limits
Credit Advantage
Excellent credit (740+) often gets better conventional rates than government loans
Speed and Flexibility
Conventional loans often close faster with fewer restrictions
Conventional vs Government Loan Comparison
| Feature | Conventional | FHA | VA |
|---|---|---|---|
| Down Payment | 3-5% minimum | 3.5% minimum | $0 for veterans |
| Credit Score | 620+ required | 580+ accepted | No VA minimum |
| Loan Limits | Higher limits available | County FHA limits | No VA limits |
| Mortgage Insurance | PMI if <20% down | MIP required | Funding fee only |
| Property Types | Primary, second, investment | Primary only | Primary only |
| Flexibility | Most flexible terms | Standard programs | Veteran-specific |
Which Option is Best for You?
The best loan depends on your specific situation. Government loans often have lower down payments and easier credit requirements, while conventional loans offer more flexibility and can be better for higher-income borrowers or investment properties.
Conventional Loan Requirements
Standard Conventional
- Minimum 5% down payment
- 620+ credit score required
- DTI ratio up to 45% (sometimes higher)
- Two years employment history
- Stable income verification
- Adequate cash reserves
MH Advantage Program
- Minimum 3% down payment possible
- Enhanced construction standards met
- Permanent foundation required
- Professional architectural features
- Energy efficiency requirements
- Higher appraisal standards
2024 Conventional Loan Limits - Northern Arizona
Yavapai County
Includes Prescott, Prescott Valley, Chino Valley
Coconino County
Includes Flagstaff, Sedona, Williams
Gila County
Includes Payson, Globe, Pine-Strawberry
Navajo County
Includes Show Low, Holbrook, Winslow
Need to Borrow More?
For loan amounts above the conforming limits, jumbo manufactured home loans are available with slightly different terms. We can help you explore these options if needed.
Private Mortgage Insurance (PMI) Costs
PMI Rates by Down Payment
PMI is required for down payments less than 20%
| Down Payment | PMI Rate (Annual) | Monthly PMI Cost |
|---|---|---|
| 5% | 0.85% | $106 (on $150K loan) |
| 10% | 0.65% | $81 (on $150K loan) |
| 15% | 0.45% | $56 (on $150K loan) |
| 20%+ | 0% | No PMI required |
PMI Can Be Removed
Unlike FHA MIP, conventional PMI can be removed when you reach 20% equity through payments or appreciation, saving you money long-term.
- • Automatic removal at 22% equity
- • Request removal at 20% equity
- • No lifetime PMI requirement
PMI Tax Deductibility
PMI may be tax-deductible for eligible borrowers, subject to income limits and tax law changes. Consult your tax professional for current regulations and your specific situation.
Ready to Explore Conventional Financing?
Let R.J. help you determine if conventional financing offers the best terms for your situation
Flexible financing solutions for every situation