In order to make a mortgage application strong enough for approval, some borrowers need to use the income or credit score of a stronger co-signer in order to qualify to purchase a manufactured home. The co-signer, or nonoccupant co-borrower, is required to be a first degree relative in order to receive conventional or FHA financing. The process is the same for both stick built and manufacturing housing -- the co-signer becomes liable for the debt as soon as the mortgage process is complete.
Fill out a mortgage loan application with both the borrower and co-signer's information to start the process to purchase your manufactured home. You will be required to include both full legal names, two years residence history, two years employment and income history as well as social security numbers and dates of birth. Provide the lender with two years tax returns, two months pay stubs and two months bank statements for both borrowers. Give the lender permission to check the credit of both borrowers.
Allow the lender to order an appraisal, home inspection and foundation inspection on the manufactured home. You may be required to pay these fees upfront, before closing.
Sign the disclosures given to both borrowers at the end of the application period. Both the borrower and the co-signer need to sign every document, on the same page, on the same date in order to qualify to purchase the manufactured home.
Allow the lender to process the paperwork and submit it to underwriting for final approval.
Sign all applicable closing paperwork at the mortgage closing. Both the borrower and the co-signer will be required to sign each document on the same page, on the same date. At this point, you will own the manufactured home.
If credit is the borrower's issue in applying for a mortgage loan, consider trying to raise your credit score prior to getting a co-signer for your loan on the manufactured home. Check your credit report for errors and report any to the credit bureau immediately. Additionally, paying down your credit cards to less than 30 percent of the credit limit will help to quickly raise your credit score.
The co-signer on this debt for the manufactured home must be fully aware of the effect that it will have on his credit report. If the borrower is late on his monthly payment or goes into foreclosure, these negative marks will show up on the co-signers credit as well. This could negatively impact his score. Additionally, the co-signer will have to consider that payment as part of his debt to income if he applies for other debt, even if he is not paying the debt each month. It could disqualify him from procuring another line of credit or debt.
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