When you buy a manufactured home, you expect your loan experience to stay simple and straightforward. But sometimes, the company that manages your loan (the loan servicer) may not be the right fit for your needs. Whether it’s due to customer service issues, confusing payment processes, or just wanting more flexibility, many homeowners wonder if they can change their loan servicer after buying their home.
The good news is that while you can’t directly choose your loan servicer the way you select your lender, there are steps you can take to potentially switch and make sure your manufactured home loan is being handled in the best way possible.
What Is a Loan Servicer?
A loan servicer is the company that manages your manufactured home loan after closing. They handle things like:
- Collecting monthly payments
- Managing escrow accounts (for taxes and insurance, if applicable)
- Providing customer service for your loan questions
- Keeping track of balances and pay-off information
It’s important to understand that your lender and your servicer are not always the same. The lender funds your manufactured home purchase, but the servicer manages the day-to-day operations of your loan.
Can You Switch Loan Servicers?
Homeowners usually cannot directly choose or swap their loan servicer at will. That decision is typically made by your lender or loan investor. However, there are two main scenarios where you might see your loan servicer change:
- Your lender sells the servicing rights: This is very common in manufactured housing and traditional mortgage markets. If this happens, you’ll receive notice of the change, and your payments will be directed to a new company.
- You refinance your manufactured home loan: If you aren’t happy with your current loan servicer, refinancing gives you the opportunity to move your loan to a new lender. With refinancing, your new loan may be serviced by a different company.
Steps to Take If You Want a Different Loan Servicer
If you’re considering making a change, here’s what you can do:
- Evaluate your current situation: Are you unhappy with customer service, billing, or escrow management? Pinpoint the issues so you know what you’re trying to fix.
- Contact your current servicer: Sometimes problems can be resolved directly. For example, adjusting your payment method, setting up autopay, or clearing up escrow confusion might solve the issue without needing a new servicer.
- Explore refinancing: Refinancing your manufactured home loan may allow you to secure a new lender and potentially a new loan servicer. You might also benefit from better rates or terms.
- Compare options carefully: Not all lenders or servicers are the same. If refinancing, make sure you research lenders that specialize in manufactured homes and manufactured housing so you’re working with experts who understand your needs.
Key Considerations Before Switching
- Costs: Refinancing comes with closing costs and fees. Be sure the long-term benefits outweigh the short-term expenses.
- Rates: If interest rates are favorable, refinancing can save you money and give you a better loan servicer experience.
- Timing: If you recently purchased your manufactured home, it may be best to wait until you’ve built some equity before refinancing.
Final Thoughts
While you can’t directly choose your loan servicer after buying your manufactured home, you do have options. Refinancing is the most practical way to change servicers while potentially improving your loan terms. At the same time, staying informed and working with a servicer that understands manufactured housing can make all the difference in your experience as a homeowner.
At ManufacturedHomeLoans.com, we’re here to help you explore your financing and refinancing options with confidence. Whether you’re buying, refinancing, or simply learning more about manufactured home loans, our marketplace and information hub are designed to guide you every step of the way.
