Mobile Home Financing Options
For the longest time a manufactured home was known as a mobile home and to this day many people refer to them as such. Mobile homes are built in a large manufacturing facility. In this controlled ecosystem the builders are required to build each home to the strict demanding Housing and Urban Development Code. This code was produced by the Federal Government to control their design, structure, and safety.
For many families the uncommon affordability of a manufactured home makes ownership a more likely reality if they are unable to go into the market for conventionally built homes. The low entry cost for buying a mnaufactured home has led to a emotional increase in the growth of the factory made home building industry. It has also allowed many families who otherwise couldnt provide such a buy to go into the home buying market.
Mobile homes constitute a good 10% of the American housing market allowing millions of people the opportunity to finance and own their own home. The mobile homes built these days offer high quality construction, great value, and progressive features that home buyers can find in more traditionally built offerings.
While the popularity of factory produced homes has increased more and more home lenders and mortgage brokers have entered the mobile home financing market. This does not average every bank or broker will finance a manufactured home but if you do your homework it isnt too hard to find a lender that does. The main thing most lenders are looking for is can the mobile home in question be classified as a piece of real estate. To qualify is usually dependent on what kind of foundation and substructure the home has.
The one thing you will notice if you find a local lender or mortgage broker to finance a mobile is that there are many similarities and a few differences to financing a stick-built home. In many situations financing a mobile home on a piece of land will require a minimum down payment of 5 percent of the buy price. The re-payment terms will also finance the balance of the loan over either a 20 or 30 year period.
For a mobile or manufactured home located in a mobile home park or on rented land a chattel mortgage might be the way to go. This kind of loan does not take into account what the land is worth that the home will be sitting on. It only finances the home itself, leaving the owner the option of moving the home if and when they want.
Another option for mobile home buyers is getting their new home financed by the manufacturer. In many situations the manufacturer can offer loan financing terms that are competitive with mainstream lenders. They can also bundle the cost of moving the home from the manufacturing facility to the homeowners lot into the loan.
If you already own a mobile or manufactured home you also have the option of refinancing your current mortgage, much like those with a more traditional mortgage. With todays low rates this may be something to consider if you want a lower monthly payment. You can also use this kind of loan to extract additional money from any equity that may be built up in your home. This money can be used to pay off other debts, make home improvements, or anything else you may need.
already though mobile home financing tends to be a little different from mortgages for traditionally built homes there are a number of options that you can choose from. While many lenders offer different manufactured home loan options it can be a harder to obtain financing for a mobile home. This does not average you shouldnt try because chances are good that you will find a lender willing to make your home ownership dream a reality.