|
Financing Manufactured Homes
Manufactured home loans are easier to obtain if the home looks less like what it is and more like a site-built home. Many of these homes today are sometimes not readily recognized as being a manufactured home. Double wide and triple wide homes are put together so artfully that it is sometimes hard to tell that is what the home actually was to start.
Financing is Available
In the past many manufactured homes loans were treated as personal property which meant the buyers were paying high interest and a hefty down payment. The rest of the loan was not financed for the typical 20 or 30 years like a home. The financing was only for 10 or 15 years.
However, today with more people opting to purchase these homes and make them look like a site built home, financing manufactured homes has become easier.
This includes putting the home on a cement slab, removing the wheels and affixing it to the slab. The use of brick or another sturdy material to put around the outside bottom of the home makes it look no different than as if it were built on the spot.
Manufactured home loans are available through your own bank if you have decent credit. If you meet this criteria the next step would be to have an appraisal of the property. The asking price cannot be more than what the appraisal says it is worth. If you want to borrow $100,000 the prospective home must appraise for at least that. Many lenders want the home to appraise for more
Financing is Easier When You Own the Land
Even better for financing manufactured homes is if you own the land on which the home will be placed. There are many manufactured home dealers that will sell you a home with no down payment if you own the land on which it will be placed.
At the present time this is the only way certain lenders will allow you to borrow on a manufactured home. The advantages to this are the loan is a mortgage loan which means you will reap the benefits of credits for tax purposes.
Many of the manufactured home dealers have a finance company that they work with exclusively for obtaining loans for their buyers. The manufactured home loans go through their lender and are therefore easier to obtain providing you have decent credit. The interest rate may be competitive or it may be a little higher depending on which manufacturer you go through.
Fannie Mae and Freddie Mac
Two more options for obtaining financing are Fannie Mae and Freddy Mac These two companies have been buying manufactured home mortgages for many years. Since affordable housing is what these two companies stand for and manufactured housing is affordable housing, it stands to reason they would be big supporters of this type of housing.
Today in the U.S. one in every three homes purchased is a manufactured home. The stigma attached to manufactured homes is starting to decrease as more sectional mobile homes are being purchased.
The high interest rates once paid when obtaining manufactured home loans is becoming more in line with conventional mortgages as the homes are beginning to resemble a typical home rather than what was once considered a “tuna can”.
Back to Home Page - Home Mortgages Loans -
|
