subject: Finance Solutions When Investing In Manufactured Homes [print this page] As soon as mobile homes first began showing up in the market in the 50's, the phrase mobile immediately caused the cost of finance to jump. Most financiers thought of mobile home as cars which made it difficult to finance by any means other than the same terms as car and truck financial products. Ever since then, along with specific quality standards required by the government a lot more lenders handle mobile and manufactured houses much more like the homes they are to their owners.
In spite of the growth of the mobile home market and many more lenders getting into the industry, for a lot of lenders the term mobile still changes the loan into a personal property loan instead of a mortgage. This usually translates into higher rates and requires a larger down payment, usually 10 percent along with a 10 or 15 year personal loan life.
One of many options manufactured home buyers might have is by removing the wheels to ensure they are less portable and purchasing the land on which it will sit. Whenever buyers are putting the manufactured home on land they own various financial institutions will treat the financial loan as a mortgage with lower interest and lengthier terms, as much as 30 years. Presently, of the top 20 mortgage companies in the United States, seven have no desire for providing financial loans for mobile homes and many others will only make the loans to buyers who also already own the land.
Currently, about 10 lenders control over 65 percent of the mobile home financing business with nearly all of those working through mobile home dealers and residential areas where the homes are placed. Retailers are frequently the starting place for those thinking about purchasing a manufactured home with over 82 percent of mobile home loans beginning with the retailer. Though buyers are often free to seek their own individual financing, dealers can guide them to loan providers that are going to accept the loan application form.
As with all loans and home mortgages, the devil is within the details and purchasers have to be cautious and ask questions prior to agreeing to the conditions of the loan. Adjustable rate house loans the time period of the loan and how it's insured will be part of the repayment schedule chosen. FHA and VA loans have grown to be available as a loan selection for manufactured homes and the requirements are relatively simple. Prospective buyers have to have around three percent down, a good credit history, proof of the capability to repay the borrowed funds and proof of income.
