Being Prepared to Apply for Manufactured Home Financing
If you have made the decision to purchase a manufactured home and will require financing, it is advisable to prepare the documents and information likely to be required when applying for that loan. This can be done online, by telephone, or in person with a loan officer.
Typically the original credit application you complete will ask for basic information and facts to be used in pre-qualification. Following the credit check, the lender will issue a conditional credit approval, subject to your supplying documentation confirming the information you presented on the credit application.
Having documents gathered and ready to submit to lender well in advance of your financing application submission, and/or when requested, will usually shorten the approval process and relieve the anxiety that comes with the status of the application.
Lender document requirements may vary depending on the lender and the type of manufactured home or modular home financing program needed, but there are many common requirements you can have readily available to meet the needs of most lenders.
The following list outlines the most probable documents and information that you will need to support your loan request:
- Government-issued photo identification such as a driver’s license for each applicant. If the home address is different than the one shown on the identification, you will need to explain the reason (i.e., recently moved, etc).
- Addresses for the past 5 years including landlord information, if applicable.
- Current pay stubs for everyone applying for the loan. Non-employee compensation may require tax verification (i.e. 1099’s, financial statements).
- W-2 forms for all applicants.
- Most recent tax returns. If self-employed, business tax returns for the previous two years and a current Profit and Loss statement.
- Documentation of additional income such as pensions, Social Security (S.S. Awards Letter), child support or alimony.
- List of assets, such as 401K accounts, stocks, etc.
- Source of down payment funds. Many lenders require that you prove with bank statements that the amount of down payment you have dedicated is in your bank account and has been there for a reasonable amount of time (aged). Lenders usually will not approve loans with borrowed down payments. Sometimes “gifted” down payments will be approved, if you provide a gift letter from the giver verifying the reason/relationship and the amount given. The gift letter should state that there is no requirement for repayment.
- Lenders may request information about a blemish found on your credit report. Be prepared to offer a true and logical explanation of the item(s).
Many of these documents may not apply to your situation. However, gathering all documents that could apply well in advance of submitting your application will support and expedite the loan approval process, shortening your route to happy ownership of a manufactured home.