Manufactured Housing Home Loans

Manufactured housing home loans can be a tricky business for the consumer who has not researched the field and learned there are bad deals available. Historically, this funding has not been in the form of mortgages, but has been financed as personal property. Generally, if the home was mobile, a manufactured housing home loan came with a higher rate of interest. The less mobile, the better the finance deal. Statistics say that only one out of every six buyers of these houses get a mortgage. The rest get personal property loans at a higher interest rate. The Housing and Urban Development,(HUD), under the Title I program, has lenders who will service eligible buyers. Under this program, to obtain manufactured housing home loans, a borrowers' credit history and ability to repay the money is crucial. Because buyers of mobile houses tend to be on a tighter budget and have fewer assets, the interest rate on their manufactured housing home loan tends to be much higher.

However, due to the increasing popularity of these types of property, there have been changes in the field. Traditionally, a borrower was required to put 10 percent down, take out a maximum term of twenty years, and since these contracts were not considered mortgages, this deprived the customer of any tax benefits. These terms have changed to 5 percent down and the maximum term has increased in some cases to 30 years. If the property is not mobile and the applicant owns the land beneath it, manufactured housing home loans would likely be viewed as mortgages.

Many banks and lenders provide a broad range of interest rates, including fixed and adjustable rates. However, a large portion of lenders stay away from the market altogether. The borrower can obtain the names of lenders in his area through local retailers or by doing a search on the Internet. With rates for a manufactured housing home loan varying from 7.5 percent and up to 12.99 percent, the prospective borrower will be wise to do comparison shopping. There are many factors that will should be considered: single section or multiple, land owned and/or mobile, and the applicant's ability to repay. The more a person can learn about the contracts, the more he will benefit. God expects His children to act wisely in all their dealings. Proverbs 14:18 says, "The simple inherit folly: but the prudent are crowned with knowledge." Each of us must cross the line from simple to prudent by first asking God to give us wisdom, and second, taking the time to research the best manufactured housing home loans.

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