How to Buy a Manufactured Home With No Money Down in North Carolina

Saving for a down payment is one of the biggest things that keeps people from buying a home. The good news is that there are real ways to buy a manufactured home in North Carolina with little or no money down, depending on your situation. Here's what they are and how to tell which ones fit you. Vision Homes, a manufactured and modular home dealer in Fayetteville, NC, wrote this guide for local buyers.

If you own land, you may already have your down payment

The most common way our buyers skip a cash down payment is with land they already own. Many lenders let the equity in your land stand in for cash. If the land is worth enough, it can cover the whole down payment. Read how using land as a down payment works →

What kind of land qualifies?

Lenders will want to know that:

• The land is in your name, or that every owner will be on the loan
• The title is clear, or any loan on the land is small
• A manufactured home is allowed there under zoning and any deed restrictions
• The lot can support a home: road access, power, and public water and sewer or a workable well and septic plan
• The appraisal supports the value you're counting on

Family land is common around here. If yours is still in a relative's name or split among heirs, start sorting that out early. It can take time.

USDA rural development loans

The U.S. Department of Agriculture backs home loans in eligible rural areas, and a lot of North Carolina qualifies, including areas not far outside the bigger towns. You can check an address on the USDA eligibility map.

Advantages:

• No down payment required for eligible buyers
• Competitive interest rates
• Terms up to 30 years

Things to watch out for:

• Household income must be under the limit for your county
• The property must be in an eligible area
• Rules for manufactured homes are strict: generally a new home, on a permanent foundation, purchased with the land
• There is an upfront guarantee fee and an annual fee
• Fewer lenders offer USDA loans for manufactured homes, and they can take longer to close

VA loans

If you're a veteran, active-duty service member or an eligible surviving spouse, a VA loan usually requires no down payment and no monthly mortgage insurance. With Fort Bragg next door, this is one of the most-used options at Vision Homes. Read more about VA loans →

Other options worth knowing about

• FHA loans need as little as 3.5% down. That isn't zero, but it's close, and gift money from family can often cover it.
• Gift funds. Many loan programs let a relative gift you part or all of the down payment.
• Down payment assistance. The NC Housing Finance Agency and some local programs offer help for eligible buyers on qualifying loans. Ask your lender which ones work with manufactured homes.
• Trade-ins. If you own a home now, its value may go toward the new one.

Your step-by-step path

1. Check your credit and clean up any errors.
2. Take stock of what you have: land, savings, a possible gift, military service.
3. Talk to us about your situation. We'll tell you which no- or low-money-down options fit.
4. Get pre-approved. Apply online or let us help.
5. Pick your home and, if needed, your land.
6. Close and move in.

Common questions

Is no money down really no money? Not always. Even with no down payment, there may be closing costs, though some can be covered by the seller, rolled into the loan or paid with gift funds, depending on the program.

Does no money down mean a higher payment? Usually a bit, since you're borrowing more. Make sure the monthly payment fits your budget.

Can I use land that has a loan on it? Often, if there's enough equity. The existing loan is usually paid off as part of the new loan.

You have more options than you think

Lots of families who thought they'd need years to save have moved into a new home with little or nothing down. Call Vision Homes at (910) 323-8222 to talk through yours, or see all of our financing options.