Mobile homes built before that date, even if they have modifications, can’t be accepted as compliant with the HUD code. These certifications ensure that the manufacturer complies with safety standards created by HUD.īefore the rule, manufactured homes were prone to electrical and wiring problems that caused home fires, such as heating and cooking equipment being close to sleeping areas. On June 15, 1976, a new rule from the Department of Housing and Urban Development, or HUD, required manufactured homes to have “HUD tags” to meet most lending guidelines. Since government regulations limit how high banks can raise interest rates, borrowers may see higher closing costs that they’ll have to cover.īorrowers with such small loans are also more likely to have high risk factors such as lower credit scores, less income, less emergency savings and less collateral value on the home than people taking out larger loans. A small loan amount can require paying a higher interest rate because the small loan won’t justify the origination costs. “The lenders are thinking what can they get back if the borrower forecloses on the loan,” says Alexander Romanov, who buys homes in Washington state through .īut getting a $100,000 mortgage can be difficult to get because it’s not high enough to be profitable for major lenders.

That’s about a third of the cost of traditional home, before the price of land is added. Buying a mobile home comes with a unique set of issues that don’t normally come up when buying brick-and-mortar, traditionally-built homes, especially when trying to get a - which is closer in size to a single-family home built on site - costs about $100,000, according to Homes Direct, a seller of manufactured homes.

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