Can You Get a Home Equity Loan on a Double-Wide? Financing Options Explained

Can you get a home equity loan on a double-wide? This is a question that many double-wide homeowners ask. The good thing is that double-wide homes can qualify for home equity loans, although eligibility depends on an array of factors, such as the lender’s guidelines, the home’s classification, and the kind of foundation.

This article goes over the criteria for eligibility, financing options, and processes for accessing the equity in your home, as well as if you can obtain a home equity loan on a double-wide.

What Is A Loan For Home Equity?

Homeowners can get a single payment with a set interest rate and repayment period by using the equity in their house as security for a home equity loan. In essence, the loan amount is based on your equity-homes’ values minus mortgage balances.

A loan for up to $80,000 could be taken out on the double-wide with a $200,000 value and, for that same reason, $120,000 in the mortgage.

Can You Get a Double-Wide Home Equity Loan?

It is possible to obtain a home equity loan on a double-wide, but banks have specific criteria for the construction and classification of property. For your double-wide to be eligible, it has to meet the criteria that follows:

1. Home Must Be Considered Real Property.
Your double-wide needs to be permanently attached to a foundation and count as real estate instead of personal property.
Before being eligible for a home equity loan, you might need to turn your house into real property if it continues to be regarded as personal property (like a car or mobile home).

2. Owned Land Is Needed For The Residence.
Typically, lenders want you to be the owner of the land on which the double-wide is located.
A home equity loan may be difficult to get if your house is on leased property.

3. The House Must Fulfill HUD Requirements
HUD Manufactured Home Construction and Safety Standards must be met by double-wide homes in order for them to be eligible for traditional financing.
A HUD certification sticker also referred to as a HUD tag, attests to the house’s adherence to federal safety regulations.

4. Both Your Income And Credit Must Be Eligible.
Before granting a home equity loan on a double-wide, lenders will evaluate your credit score, debt-to-income (DTI) ratio, and general financial health, just like they do with any other loan.
Although some lenders may accept lower scores with higher loan rates, a credit score of 620 or higher is usually required.

Alternatives for Home Equity Loans for Double-Wide Houses

There may be alternative financing alternatives open to you if you are not eligible for a typical home equity loan:

HELOC (Home Equity Line of Credit)
Like a credit card, a HELOC lets you take out loans on the equity in your house whenever you need them. While it is a flexible choice, fluctuating interest rates typically go with it.

Title 1 Loan from FHA
The FHA Title 1 loan provides funding for house improvements without requiring real property classification for homeowners who do not own the land where their double-wide home sits.

A Cash-Out Loan
You may replace the current mortgage with a larger one while receiving the difference in cash with a cash-out refinancing. If the rates of borrowing are lower now than they were when you bought your house, this other option could be helpful.

Loans for Chattel
You can be qualified for a chattel loan, which is a kind of finance intended for prefabricated homes if your double-wide is still regarded as personal property. However, compared to traditional mortgages, these loans usually have higher interest rates.

How to Complete a Double-Wide Home Equity Loan Request

When you’re ready to apply for a double-wide home equity loan, do these actions:

Verify the Classification of Your Home
Make sure that your double-wide is securely fastened to a foundation and qualifies as real property.

Calculate Your Equity
Find out how much equity you have in your residence by using an online estimate or a home assessment.

Check The Lender’s Requirements.
Verify if lenders offer home equity loans for double-wide manufactured homes by contrasting them.

Verify Your DTI Ratio And Credit Score.
To boost your chances of being accepted for a loan, make sure your debt-to-income ratio is less than 43% and improve your credit score if needed.

Collect Required Documents
Typically, lenders need:

• Evidence of land ownership and homeownership
• Verification of income (tax returns, pay stubs)
• Title and home appraisal records
• Evidence of HUD-certified

Apply and Receive Acceptance
Send in your application, wait for approval, and then move on through the lender’s assessment process.

So, can you get a home equity loan on a double-wide? The answer is yes, provided your home satisfies lender requirements such as classification as real property, compliance with HUD requirements, and whether you own the land.

If you are ineligible for a traditional home equity loan, alternatives such as HELOCs, FHA Title I loans, or cash-out refinancing may be potential options. To boost your chances of being approved, check your credit, home equity, and lender requirements before applying.

Knowing the financing options can help you buy a condo or get a double-wide home equity loan with ease and unlock the financial potential of your home!