A reader asks, “Do you have a local list of approved FHA lenders for first time home owners in the amount of $50,000.00 and lower?” This is a common type of question; we get asked this sort of thing quite frequently in the comments section. There are a variety of reasons why a borrower might wish to apply for a comparatively low-dollar amount FHA loan.
One is that some housing markets simply don’t have the higher prices; another is that a borrower wishes to purchase a mobile or manufactured home rather than what’s known as “stick-built” housing which is built on-site.
What’s important to know is that lender standards vary from place to place. What’s offered by one lender may not be offered by another. With that in mind, it’ good to know that some lenders don’t offer manufactured housing loans or mobile home loans. Others do.
So the dollar amount isn’t the only consideration-your loan officer may ask what type of property you need the mortgage loan for and determine right away whether a loan is possible or not.
One thing about this reader question than requires clearing up-the assumption that a first time home buyer might have some kind of advantage as a new buyer; the FHA loan program itself does not offer any advantages to first time buyers. An individual lender might, but under the general terms of the FHA loan rules, all qualified borrowers are offered the same types of loan with standardized repayment terms, negotiation of interest rates, etc.
The short answer to the reader question is that there is no centralized list available through this website of lenders who offer mobile home loans (our assumption as to one possible reason for the need for the lower dollar amount) or for loans that hit a certain price range. FHA mortgage loans are determined by the adjusted sales price of the home or the appraised value of the home, whichever is lower.
Individual lender standards apply, so a borrower will need to shop around to find a lender willing to work with their needs in this area.