Manufactured Housing News

For many California homeowners, manufactured homes provide an affordable and comfortable alternative to traditional housing. However, just like any home loan, the mortgage terms you start with aren’t necessarily the ones you have to keep forever.

Refinancing a manufactured home can offer financial benefits— like securing a lower interest rate, reducing monthly payments, or shortening your loan term. Understanding when and how to refinance can help you save money and move towards financial stability.

Why Consider Refinancing?

The biggest reason homeowners refinance is to try and improve their financial situation. This might mean lowering your monthly payment by locking in a better interest rate, switching from an adjustable-rate mortgage to a fixed-rate loan for predictable payments, or shortening the loan term to pay off your home faster. Some homeowners also refinance to tap into their built-up equity for major expenses like home improvements or debt consolidation.

Types of Refinancing Options

There are several ways to refinance a manufactured home in California:

• Rate-and-term refinance: This is the most common type, allowing you to replace your current loan with one that has a lower interest rate, a shorter term, or both.
• Cash-out refinance: If your manufactured home has gained value, you may be able to borrow more than your current balance and use the difference as cash for other needs.
• FHA or VA refinancing: Government-backed programs like FHA Title I or Title II and VA loans (for eligible veterans) can offer lower rates and flexible qualifications, especially for homes considered real property.

The best choice depends on your current loan structure, your financial goals, and whether your manufactured home meets the right criteria. While Triad does not offer cash-out refinance or FHA/VA refinancing, we are one of the top lenders in the manufactured housing space and understand the unique steps involved in refinancing a manufactured home.

Key Considerations Before You Refinance

Not all manufactured homes qualify for traditional refinancing. Most lenders require the home to be permanently affixed to land you own and built after June 15, 1976 (to meet HUD standards).

You should also consider the cost of refinancing. While lowering your monthly payment is appealing, refinancing typically comes with closing costs ranging from 2% to 5% of the loan amount. Be sure to calculate your break-even point—the time it will take for your monthly savings to outweigh the upfront costs.

Is Now the Right Time to Refinance?

Interest rates fluctuate, so it’s worth comparing your current rate to today’s market. If rates have dropped since you secured your original loan, refinancing might offer immediate savings. Also, if your credit score or financial profile has improved, you might now qualify for better terms.

Refinancing a manufactured home in California can bring you significant benefits, from lowering your monthly payment to paying off your home faster. The key is making sure there’s a clear net benefit—whether that’s a reduced rate, improved loan terms, or access to cash from your home’s equity. By comparing lenders, understanding your home’s eligibility, and carefully evaluating the costs, you can make a refinancing decision that supports your long-term financial goals.

If you’re ready to take the next step or have any questions, reach out to us at Triad Financial Services today.