Historically, manufactured homes were known as “mobile homes,” a term that a lot of folks still use. Manufactured homes are built in a manufacturing plant and are fashioned to conform to the rigorous Housing and Urban Development Code, which was instituted by the Federal Government to regulate safety, design, and structure of these homes.
The uncommon affordability of manufactured homes puts home ownership inside the reach of a lot of families who are priced out of the marketplace for traditional homes. Over the last few years, the rate of growth of the factory-made construction industry has been striking, and the affordability of these homes has played a role in getting rid of the roadblocks towards homeownership for many households. Millions of Americans live in mobile homes, which constitute more than 10% of the total housing market. Nowadays mobile homes offer the superior quality, economic value, and technologically advanced features that homebuyers want.
In spite of the popularity of factory-made housing, most mortgage brokers and lenders don’t care to meet the needs of manufactured homeowners or supply funding for mobile homes. Those that do will take in to account things like the foundation and type of substructure which are what allows for mobile homes to be classed as real estate.
If you can obtain a local lender to finance your mobile home, you’ll notice many similarities and several differences to conventional mortgage financing. Many mobile homes located on land now demand a 5 percent minimum down payment and loan conditions that finance the balance over 20 to 30 years.
Other loans, known as “chattel mortgages” are likewise obtainable from certain lenders. A “chattel mortgage” is a loan for a home where land isn’t a consideration, only the mobile or manufactured home, its self. This is of value for homes that are located in mobile home parks or rented lots.
Many times, the best place to look for mobile home financing is to go direct to the manufacturer. Mobile home manufacturers oftentimes offer in house financing programs at rates that are competitive with the industry standard.
Mobile Home financing isn’t confined to purchase loans. As a mobile home owner, you are able to also refinance your present loan, just like a traditional mortgage. If you’re looking to lower your rates and benefit from a monthly savings, you may be a good candidate for a mobile home refinance.
Although mobile home financing does differ from financing a traditional home, there are numerous options available to you. It is true that it can be more difficult to get financing for a mobile home. Despite the extra hassle, if money is an issue, purchasing one of today’s modern manufactured homes can be a great way to experience homeownership without breaking your budget.