What is one common reason a manufactured home might not qualify for a conventional mortgage?

A manufactured home typically needs to be affixed to a permanent foundation to qualify for a conventional mortgage. This requirement stems from the fact that conventional lenders are concerned about the long-term stability and safety of the home. A permanent foundation enhances the structural integrity of the manufactured home, making it more akin to a traditional home in terms of longevity and durability. It indicates that the home is less likely to be moved or damaged, which is crucial from a lender's perspective as they want to mitigate risks associated with their loans.

Situations where a home lacks a permanent foundation might raise red flags for lenders. They may view such properties as less secure or more susceptible to damage, which can impact resale value and the likelihood of obtaining a mortgage if the borrower defaults. Thus, not having a permanent foundation can genuinely hinder the ability to secure conventional financing for a manufactured home.