Manufactured Home Loans
With so many beautiful designs and the chance to choose the colors and layout, manufactured homes are becoming a viable option for those looking to purchase their first home. The process for a mortgage loan can be complicated, and there are some specific issues that have to be addressed with manufactured home loans.
Regardless of your credit rating, you can expect to pay a higher interest rate with a manufactured home loan than a traditional mortgage loan. You may find it is difficult to find a lender who will finance you. There are plenty of lending companies though that specifically deal with manufactured home loans. The dealership you are working with will likely be able to complete the credit application from you and then give you several different options from the lenders they work with.
In many instances, the difference between a private lender financing a manufactured home for you and denying the application is the mobility of the home. If you are planning to put the manufactured home on a permanent foundation, then you are more likely to secure this type of financing.
The amount of money you need to put down on a manufactured home is generally between 5% and 10%. The loan terms may only be 10 to 15 years. Now, this is considerably less than a traditional mortgage of 30 years, but keep in mind that manufactured home often cost much less than traditional homes.
With the increased sales of manufactured homes, many top lenders are climbing on board to offer financing options. Fannie Mae and Freddie Mac have joined in to offer an affordable monthly payment for those who wish to purchase a manufactured home. The Federal government has also designed HUD guidelines for low income families to purchase manufactured homes but the guidelines are quite strict.
You do want to take the time to compare the various aspects of a manufactured home loan before you commit to it. Make sure you understand all the terms and conditions as you would with any loan. Don’t get yourself caught up in a situation where you have a balloon payment due at the end of the loan. This is because refinancing a manufactured home is much more difficult than getting the initial financing. You don’t want to lose your home because you can’t cover the balloon payment.
