Financing For Manufactured Homes

A buyer who is seeking financing for manufactured homes may face a few obstacles that do not generally apply to standard mortgage loans for conventional homes. A wise consumer will spend time researching and comparison shopping before settling with a specific lender. The terms that are available when seeking financing for manufactured homes can drastically differ from provider to provider. Many modular home communities have the capacity to both sell and finance these properties. A consumer should not feel an obligation to obtain funds from the community or dealer that is selling the home. Buyers can generally feel free to negotiate loans with outside sources. Other areas that a potential borrower should carefully explore could include any warranties that accompany the property including the installation of the home, title concerns, any special regulations that apply to this type of domicile, and issues pertaining to the land where the home will be installed. Potential buyers should also look into whether or not the home will appreciate in value over time, since this is a factor that can vary when purchasing this kind of property.

Manufactured homes are also called mobile, modular or site built homes. There can be a wide variety of difference in houses that have been created off site. Understanding these differences is the first step toward making an educated purchase and selecting the best option when considering financing for manufactured homes. The traditional mobile home has changed greatly since the day of the simple house trailer. A site built home is one that is, as the name implies, built completely on site. The modular domicile is constructed in sections at a factory. These sections are then shipped to the location of residence and attached together on site, usually by a local contractor who has been hired for the job. If the work has been performed properly and the location of the home merits it, the value of the property may increase over the years. A manufactured home is built entirely in a factory, but might, as with their modular counterparts, be shipped in pieces and reassembled on site. Since these properties are not always affixed to a permanent foundation, their values can depreciate. They can be difficult to refinance as well. These features establish some of the key differences between financing for manufactured homes and traditional mortgage loans. Even with these differences, housing in this category can provide an economical solution for buyers. The Bible tells of how God hears the prayers and the desires of believers. "Lord, thou hast heard the desire of the humble: thou wilt prepare their heart, thou wilt cause thine ear to hear." (Psalm 10:17)

Some communities have specific regulations when it comes to this type of housing. For this reason, potential buyers should make sure that they understand any local regulations that may apply before moving forward. Having changed drastically from the days of the humble trailer, the factory built home has grown in popularity recently and the bias against such housing options continues to fade. In addition, these homes have become much more upscale than previous models and have a more residential appearance than was once the case. With all of these changes, there are still many differences when it comes to financing for manufactured homes. Among these differences are higher interest rates, and the way that administrative fees are paid in this type of housing. Since the general notion is that these homes are not as permanent as traditional real estate, the interest rates will generally be much higher. The administrative fees are usually handled by the lender rather than passed on to the borrower in most cases. Of course, any expenses that a lender must incur usually are passed on to the borrower in one way or another.

The presumed mobility of this property is largely responsible for the differences in the terms that are available when obtaining financing for manufactured homes. The transitory nature of this property decreases its value as loan collateral. If a property in this category is perceived as more permanent, the lending terms that apply to the property tend to be more reasonable. Many lenders will only finance these properties for a period of ten to fifteen years and require a larger down payment of at least ten percent. Other lenders may take a more traditional approach and offer terms such as twenty or thirty year mortgages with only a five percent down payment. If the home buyer owns the land on which the home is located and the home has been permanently affixed to its location, it is more likely to be viewed as a standard home that is eligible for more traditional financing. The types of financing for manufactured homes that are generally available could include loans from personal property loans, conventional mortgages, and financing that is offered by a manufactured home community. Some buyers have the opportunity to buy the land at the home's location along with the home itself while others sign a land lease agreement.

The regulations and guidelines that pertain to financing for manufactured homes can vary from state to state. A wise buyer will make sure that they understand their state's specific guidelines before finalizing any purchase. Some lenders deal specifically with homes that are brand new and have not yet been installed. Others only provide financing for existing manufactured properties that are already on site. There are also federal regulations that pertain to the construction quality of these properties. A wise borrower will consult one of the many online sources that can help the consumer better understand the nature of these homes.





Ten years and counting | Dev release: 0.2.153.1 | What would you ask Senators McCain and Obama? | Announcing the Android 1.0 SDK, release 1 | Opening the door to geospatial data | Developer Day London videos and presentations now online | Always Be Testing Webinar on Monday

Add to: File Insurance Business article Teen Photo Images