What to Know about Refinancing a Modular Home

Posted: Oct 11, 2012
Author: 1st Choice Home Centers

Mortgage lenders usually treat modular homes the same as standard single-family dwellings. If you want to refinance a modular home, it’s very important to first establish that it is in fact a modular home and not a manufactured home. Lenders may treat manufactured homes and modular homes differently.

A modular home doesn’t have a hitch or an axle underneath the structure, which a manufactured home may have.

Read your current mortgage loan documents to see if there are any amendments or clauses stating that your house is “manufactured.” If there’s nothing to this effect, you can be pretty sure that it is modular. Contact several mortgage lenders and ask for a quote to refinance a modular home. Ask how much experience they have with refinancing these particular structures.

A competent mortgage lender will want to verify that the home is modular and not manufactured. This is typically done through a title attorney or a title company. It’s a standard part of the process and having it done early will help expedite the closing of your refinancing loan.

Once you have chosen a lender and completed an application, schedule a time for an appraiser to visit your home. The appraiser will want to inspect the interior and exterior, as well as the attic and crawl spaces. If your refinancing application is approved, closing a mortgage on a modular home is no different to any other type of dwelling.