FHA Mobile Home Loan

The process of attaining an FHA mobile home loan need not be an intimidating one and can also offer the borrower many benefits. The requirements for such loans are, in general, easier to meet than those of a traditional property mortgage. The amount of money that can be borrowed will be considerably less than the amount entailed in traditional real estate loans. However, since manufactured homes are usually priced much lower than standard homes, the amount of debt that is acquired should be lower as well. In some cases, the mortgage will cover both the cost of the building and the lot or area of land on which the house will be placed. The Department of Urban Development, or HUD, oversees the Federal Housing Administration, or FHA. These loans are known for their economy and will generally require less money up front for things like down payments and closing costs. In addition, they are also insured by the Federal Housing Administration and this can often persuade lenders to offer more lenient terms to the borrower pursuing an FHA mobile home loan.

There are two varieties of the FHA mobile home loan. One type of mortgage involves financing both the manufactured house itself and the land beneath it. The other type is geared toward homes that will be located in a mobile home park or community. Because of the insurance that the Federal Housing Administration provides, lenders are taking less of a risk. These lenders understand that should a borrower default on the mortgage, the Federal Housing Administration insurance will cover the loss. As with traditional loans, a potential borrower's credit is evaluated based on issues such as credit history, income, and proof of the ability to meet the mortgage payments. It is important to note that the government agencies that are involved are not the lenders when a borrower obtains an FHA mobile home loan. Rather, specific lenders are approved by the Federal Housing Administration for these programs. The only thing that the Federal Housing Administration provides is the loan insurance. In any kind of real estate financing, potential borrowers should not hesitate to seek help from professionals in this area. The Bible talks about the way that God hears the cries of believers. "I cried unto God with my voice, even unto God with my voice; and he gave ear unto me." (Psalm 77:1)

The requirements that a borrower must meet in order to obtain an FHA mobile home loan could include a number of things. For example, a borrower should be able to make a down payment of anywhere from three to five percent of the amount of the loan. In addition, the potential borrower must show an ability to not only make the loan payment, but also be able to meet other living expenses as well. The house that the borrower wishes to purchase must serve as a primary residence for the buyer. Whether the house will be located on the borrower's own land or will be located on a rented site in a mobile home park or community, the buyer must have a proper location lined up. These manufactured homes must also meet certain requirements. They must adhere to the National Manufactured Home Construction and Safety standards. Homes that are brand new must carry a manufacturer's warranty of one year. The land site must also comply with local regulations, be of the appropriate size, and have access to water and sewage facilities.

Funds from these financing sources can only be used to purchase homes and land and cannot be used for such items as furniture or decorating accessories. Certain items such as appliances that are built in or flooring material could be purchased with these funds. An FHA mobile home loan can usually be paid off over anywhere from fifteen to twenty five years, depending on the type of building that is being purchased. A building lot alone can usually be financed for up to fifteen years, while a lot in combination with a multi-sectioned home can generally be financed for around twenty five years. As with financing for traditional homes, payments in this type of lending will be applied to both the principal and the interest. Any homes that are considered single section homes are usually given a twenty year FHA mobile home loan. Most retailers who specialize in manufactured homes can help potential buyers find lenders who are approved by the Federal Housing Administration and can aide the buyer in attaining this kind of financing.

Since government agencies are involved in these financing options, these agencies can provide help to the potential buyer in a number of ways, even after the transaction is complete. Before the sale is accomplished, a borrower must sign something called an HUD placement certificate before the loan can move forward. This certificate guarantees that installation has been accomplished in a safe and satisfactory manner. If a buyer has problems after they have purchased and moved into their manufactured home, they can contact the Department of Housing and Urban Development for assistance. In addition, whether or not a consumer is pursuing an FHA mobile home loan, there is protection offered under the Fair Housing Act. This act makes any kind of discrimination in regards to housing illegal, including in areas of mortgages or loans for home improvement. What this means for the buyer is that they cannot be denied financing because of issues such as sex, race, religion, national origin, disability, or even the number of children who will be living in the home.



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