Thinking about a manufactured home but unsure where to turn for financing? You’re not alone—many aspiring homeowners want to know if big banks like Wells Fargo offer loans for manufactured homes.
The answer isn’t always simple, making it crucial to understand your options before you start shopping. In this article, we’ll clarify whether Wells Fargo finances manufactured homes, explain what to expect, and share tips for finding the best loan for your needs.
Does Wells Fargo Finance Manufactured Homes?
If you’re exploring the possibilities of owning a manufactured home, one of the first questions you might have is whether Wells Fargo offers financing for manufactured homes. The answer is yes—but with important distinctions that you’ll want to consider before starting your homebuying journey. Wells Fargo has a well-established history in lending for manufactured housing, but the types of financing, requirements, and processes can differ from traditional home loans.
In this comprehensive guide, you’ll discover how Wells Fargo approaches manufactured home financing, what to expect, and how you can increase your chances of securing a loan.
Understanding Manufactured Home Financing
What Are Manufactured Homes?
Before diving into financing, it’s helpful to clarify what “manufactured homes” are. In simple terms:
- Manufactured homes are factory-built residences constructed after June 15, 1976, and shipped to a site for installation.
- Mobile homes usually refer to similar structures built before that date.
- These homes are built to federal HUD (U.S. Department of Housing and Urban Development) standards, ensuring quality and safety.
How Manufactured Home Financing Differs
Financing a manufactured home is not exactly like getting a standard mortgage. Here’s why:
- Property type matters: Loans for manufactured homes have different requirements than for site-built homes.
- Permanent foundation: If the home is affixed to a permanent foundation and titled as “real property,” financing is easier.
- Land ownership: Owning the land where the home sits can improve your loan options.
Wells Fargo’s Approach to Manufactured Home Financing
Wells Fargo has played a significant role in the financing of manufactured homes, especially within manufactured home communities and for multi-unit developments. However, the bank’s lending programs tend to be more accessible for certain types of manufactured housing.
1. Focus on Real Property Loans
- Wells Fargo is most active in offering financing when a manufactured home is attached to a permanent foundation and classified as real property (not just personal property or a vehicle).
- This typically means the home and land are being purchased together and are recorded under a single title.
2. Community and Commercial-Level Financing
- Beyond personal loans, Wells Fargo is a major lender for manufactured home communities (parks and multi-unit sites).
- They supply commercial loans to community operators for constructing, expanding, or refinancing entire manufactured home communities.
3. Limited Chattel Financing
- Chattel loans are for homes not affixed to permanent foundations, often located in leased lot communities.
- Wells Fargo does not generally provide chattel (personal property) financing for manufactured homes that are not classified as real property.
Steps to Secure Manufactured Home Financing with Wells Fargo
If you’re interested in buying a manufactured home with Wells Fargo, here are the typical steps you’ll follow:
1. Determine the Home’s Classification
- Confirm whether the manufactured home will be classified as real property (affixed to land you own) or personal property.
- Homes on rented lots are often considered personal property, limiting financing options.
2. Confirm Eligibility
- The manufactured home must be built after June 15, 1976 (to HUD standards).
- The home needs to be on a permanent foundation and taxed as real estate.
- You should own both the home and the land.
3. Prepare Financial Documentation
- Gather documents such as proof of income, credit history, bank statements, and tax returns.
- Be ready to provide details about the home (year, make, model) and the land (ownership, title).
4. Apply for Pre-Approval
- Meet with a Wells Fargo lending specialist to discuss your situation.
- Get pre-approved to see what types of loans, interest rates, and terms are available.
5. Home Appraisal and Inspection
- The bank will require a professional appraisal to determine the market value of the manufactured home and land.
- An inspection ensures the foundation is permanent and the property meets lending requirements.
6. Final Loan Approval and Closing
- Once all documentation is reviewed and the property is appraised, the loan will move to underwriting.
- Upon approval, you’ll sign the final documents and close on the home and land together.
Key Benefits of Financing with Wells Fargo
Selecting Wells Fargo for your manufactured home loan offers several potential advantages:
- Trusted Financial Institution: Wells Fargo is one of the largest U.S. banks, offering stability and a range of loan options.
- Competitive Rates: The bank can provide competitive loan rates for qualified buyers purchasing manufactured homes as real property.
- Comprehensive Customer Support: Expertise in various kinds of home loans—including those for manufactured housing—means knowledgeable support throughout your buying process.
- Wide Range of Mortgage Products: You may be able to access FHA, VA, or conventional loans if your property meets the eligibility requirements.
- Refinancing Options: If you already own a manufactured home and the land, refinancing through Wells Fargo may be possible, depending on your circumstances.
Challenges and Things to Watch Out For
While the possibility for financing exists, manufactured home loans can present unique challenges:
1. Property Eligibility
- Not every manufactured home qualifies. Homes must often be newer (built after 1976), safely installed, and titled as real estate.
2. Land Ownership
- The strongest loan terms are available when you own the land. If you’re buying just the home, financing options are limited.
- Homes located on rented lots generally are not eligible for conventional mortgage loans.
3. Foundation and Installation
- Wells Fargo (and most lenders) requires the home to be affixed to a permanent foundation meeting federal, state, and local requirements.
4. Loan Type Limitations
- You may not have access to all mortgage types; certain government-backed loans (like FHA or VA) may have extra requirements.
- Chattel loans, for homes as personal property, may not be available from Wells Fargo.
5. Appraisal Issues
- Manufactured homes may have lower appreciation rates than site-built homes.
- Getting a fair, accurate appraisal can sometimes be more complex.
6. Down Payment and Interest Rates
- The required down payment can be higher (often 5%–20%), and interest rates may be slightly more than for site-built homes.
Practical Tips for Success
To maximize your chances of securing financing for a manufactured home through Wells Fargo, keep these practical tips in mind:
- Purchase Land Whenever Possible: If you can buy the land along with your home, you’ll qualify for more—and better—loan options.
- Insist on Permanent Foundations: Seek homes that are already (or can be) affixed to permanent foundations.
- Confirm Certification: Only consider manufactured homes built after 1976 and certified to HUD standards.
- Gather Your Paperwork: Early preparation of financial and property documents will streamline the process.
- Check Your Credit: Review your credit report and scores ahead of time, as better credit improves approval chances and loan terms.
- Consult a Mortgage Specialist: Wells Fargo’s loan officers can clarify requirements based on your property and financial status.
- Consider Future Resale: Choose a home and land that will hold value over time for better long-term financial security.
Best Practices When Financing a Manufactured Home
- Do Thorough Research
- Understand all the unique requirements for manufactured home financing.
-
Compare options among different lenders, including Wells Fargo.
-
Assess Total Costs
-
Always factor in both home and land prices, along with insurance, property taxes, and ongoing park fees (if any).
-
Plan for Inspections and Appraisals
-
Be ready to pay for the necessary (and sometimes more costly) appraisals specific to manufactured homes.
-
Pay Attention to Title and Deed
-
Ensure both the home and land are titled correctly and in your name to make closing smoother.
-
Understand Loan Terms
- Ask about loan duration, fixed vs. adjustable rates, and any prepayment penalties or fees.
Concluding Summary
Wells Fargo does finance manufactured homes, with a primary focus on those considered real property—meaning they are affixed to a permanent foundation and the borrower owns the land beneath. While you may run into restrictions for homes on leased lots or for personal property loans, Wells Fargo remains a reputable choice if your property meets the necessary requirements.
Taking the time to understand the nuances of manufactured home financing will help you approach the process with confidence. By following expert advice, gathering the right documentation, and working closely with your lender, purchasing a manufactured home can be a smooth and rewarding experience.
Frequently Asked Questions (FAQs)
1. Does Wells Fargo offer loans for manufactured homes on rented land?
Wells Fargo generally does not offer loans for manufactured homes located on rented land, as most of their loan programs require the home and land to be purchased together and classified as real property.
2. Can I get a Wells Fargo mortgage for a mobile home built before 1976?
No, manufactured homes must be built after June 15, 1976, to qualify for financing, as they must adhere to federal HUD standards.
3. What types of loans does Wells Fargo offer for manufactured homes?
Wells Fargo offers conventional, FHA, and VA loans for manufactured homes, but only if the home is permanently affixed to owned land and meets all other qualifying criteria.
4. Is a permanent foundation required to finance a manufactured home with Wells Fargo?
Yes, a permanent foundation is typically required. The home must be installed according to state, local, and HUD guidelines to be considered for a mortgage.
5. What documentation do I need to apply for a manufactured home loan at Wells Fargo?
You’ll need proof of income, recent tax returns, a credit report, property details (including HUD certification), land ownership documentation, and information about the foundation. Your loan officer may request additional documents as needed.
By understanding the ins and outs of manufactured home financing with Wells Fargo, you’ll be well-equipped to make informed decisions and take the next steps toward affordable homeownership.
