Archive for December 18th, 2007

About Manufactured Home Loans And Mortgage Programs

Manufactured homes tend to depreciate quicker than traditional homes and they don’t last as long either. While there are a lot of programs and mortgage loan options available for people who are keen on buying a manufactured home, remember the interest rates are much higher because of the depreciation aspect.

Generally the manufactured home is purchased with personal property loan or chattel. This means the manufactured home is recognized as personal property like a car but it is not real estate. When the down payment is almost nil, the interest rates will be very high. The loan term is generally shorter than traditional home loans but if you own the land your home is on then you may get a longer loan period. Then you may also be considered for a traditional real estate mortgage in place of a personal property loan and you may get real estate tax breaks too.

The 80/20 Loan is one where the down payment has to be at least 20% of the price you have bought your home for. Once the owed amount goes below 80% of the home value, inform your mortgage company to drop the private mortgage insurance which was for the company’s safety, not yours. This way your monthly installment will also reduce.

VA Loans are for veterans who qualify as being able to buy a manufactured home. These loans are guaranteed by the federal government. This is a good option as the rate of interest is low and there is no down payment needed.

FHA insures private loans for people who either want to renovate or buy a new home. This is a good option because the buyer will pay the same mortgage insurance rate irrespective of their credit score. The Federal Housing Administration is part of the Department of Housing and Urban Development.

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