Getting A Mortgage Loan For A Manufactured Home: 3 Ultimate Tips


A manufactured home is a home manufactured in a factory and then transported to the site where it is needed. Hence, manufactured homes are also mobile homes. Such homes can be moved around and are bought from home building companies. Being part of personal property, manufactured homes need to be taken good care of. Manufactured homes financing is just one way to do so. Hence, when it comes to financing, manufactured homes are financed with chattel and/or mortgage personal property loans depending on the terms manufactured home buyers prefer. Below are some of the top tips to finance a manufactured home.

Chattel loans

They allow purchase of either used or newly manufactured homes. Buyers have to have land they fully own, rent, or partially own but paying for it. This form of manufactured homes financing is more preferable for prospective home-owners who are more sensitive about customization, building materials, home outlook (color, design, sizes, furnishing, structures), among other features. Chattel loan applicants get to enjoy low prices, excellent and complete fencing and furnishing, well established yards, walkways and driveways, and proximity to other manufactured home community members, public roads, offices, shopping centers, and entertainment facilities. The major drawback of this finance is that one has to pre-own land, preferably own outright land or that whose payment is in progress. For rental land, one may have to move around too much because the time of occupation on a piece of land is upon a landlord/landlady’s sole discretion.

Mortgage financing

This is the most conventional form of home financing which also applies for manufactured homes. It allows home buyers to realize their dreams of having homes as well as their own private spaces. Here, buyers can buy the home and the land and permanently title these as their real personal property. They may do this through a HUD-approved foundation and enjoy unique benefits. Generally, mortgage manufactured home financing allows very affordable monthly payments with surprisingly low interest rates. In addition, buyers get high credit scores due to excellent monthly payments which consequently attracts other lenders. They also easily get the necessary home financing appraisals as well as increasing the chances of selling their homes faster. This form of financing comes with consumer protection and tax benefits.

Before making the financing option that you have settled for, there are a few things that you need to understand.


  • Determine the experience of the lender


You need to ensure that you trade with the best lender who is determined to own the terms of the financing deal. You may need to get referrals and ask for reviews about their services in previous transactions and their experience in the industry as well. You can get referrals from friends or relatives to help you choose a reputed lender.


  • consider a new or a used home


Used homes tend to be a bit cheaper as compared to the new manufactured homes. However with such homes, there is no chance of customizing the home to suit your needs. On the other hand, the new homes can be customized based on your preferred designs. This means that you can make changes on the colors and either construction materials.


  • Get a title to your property


Getting a title to your home is quite a great idea to give you full ownership of the property. Acquiring the land gives you a chance to access the loan at lower interest rates.

While circumstances may vary causing a corresponding change in the terms of home financing, owning a home and a private space doesn’t have to cost a fortune all at once. Through manufactured home financing, dreams of owning a home are now much easier to realize.


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