Posts filed under 'Manufactured Homes'
Home loan offers for Mobile Homes or Manufactured Homes are of a different category, from the conventional and custom built homes. This is because Manufactured Homes are movable properties and are treated as Cars and other vehicles for loan purposes. Though this concept is changing gradually now a days, still most of Manufactured Home lenders go by this traditional thinking.
There are a number of private home lenders if you make a search online apart from Government based Department of Housing and Urban Development (HUD) financing for Manufactured Homes. Generally one can get Home loans for purchase of a Manufactured Home; Home with the land where the mobile home sits; individually or clubbing both; refinancing the Home loan from a lender already barrowed with another lender for shortening or lengthening the term of the loan or reduce interest rates and also purchase of used Mobile homes in their present condition.
The upfront down payment varies with different lenders from 10% on the value of the proposed mobile home to 5%; the interest rates also vary – either a fixed rate interest where the interest on the entire home loan is calculated and divided evenly to be added in the monthly repayment installments; or a floating rate (ballooning rate as it is also known as) of interest in accordance with the financial market fluctuations where the monthly repayment installments will vary in amounts.
Home loans towards mobile homes carry a slightly higher rate of interest when compared to the custom-built homes and the loan period is also does not extent to more than 10 years generally to be repaid. All other terms and conditions like waiver of penalty for prepayment of loans, collateral securities for lowering the interest rates, application fees etc. differ with each lender. So it is advisable to get all the info prior to signing a loan agreement for Mobile Home loan and get one that is most suitable for you.
July 18th, 2008
The common American dream of owning a house is the back-bone of the U.S. housing market and we can dare say Mobile or Manufactured homes are fulfilling this dream to a considerable extent. As many as 19 million people are residing in Mobile homes through out the U.S. country, according to reliable statistics, and one out of three new homes purchased presently are Manufactured Homes.
According to informed circles, the concept of affordable housing has changed dramatically over the last 5 or 6 years. Thanks to the modern technologies used for manufactured homes, the old mobile homes popularly identified in the good old days as “trailer homes”, “box kites”, “ovens” and “freezers” are no more suitable for such infamous adjectives. The latest manufactured homes are coming in good quality materials, stitched and secured seamlessly in double-wide sections to be affixed on the ground, identical and in no way inferior to the custom built conventional homes.
The manufactured home industry has grown into a $14 billion turnover, inasmuch as it provides homes at affordable costs to the needy Americans. The spurt in business is spectacular and buying manufactured homes is brisk, as opposed to the glut in real estate market of late in all the States of the U.S. nation.
However the only stumbling block is the higher rate of interest charged on mortgages of mobile homes. But there is sound reasoning behind this like – the homes are not “immovable properties” to stand as collateral; the hang over is still there to treat the loan as personal loans as in the case of automobiles and boats; the buyers of mobile homes are in a tight budget; the life-span of manufactured homes is less compared to conventional homes; the depreciation is faster in reducing the re-sale value; and also all administrative charges, connected with mortgages – application fees, credit report fees, cost appraisal fees, documentation fees etc. are borne by the manufactured home sellers.
But the solace is, more and more lenders are now forthcoming for 30 years’ term home loans with fixed or variable rates of interest. The time is therefore ripe to own a Mobile Home now, based on the situations obtaining.
July 9th, 2008
In view of the popularity of Mobile Homes and the demand from those who could not afford buying the conventional brick and mortar homes, the Department of Housing and Urban Development (HUD) is coming forward to finance the Mobile Home buying.
The system works this way – lenders in the approved list of HUD can extend home loans to barrowers towards buying Mobile homes from their own resource and after satisfying the eligibility criterion of the barrower. FHA insures such loan amounts to the lenders that in case of default in repayment, HUD will reimburse the lenders with the dues.
The purpose of such loans is for purchase or refinancing of manufactured homes, a lot for placing the manufactured home or a combination of purchase of manufactured home and a lot. The pre-condition for the loan is the barrower should use the Mobile home as their principal residence. The interest rate charged is generally the market rate prevailing at the time of purchase of the Mobile home.
The maximum amount of loan are stipulated thus –
manufactured home only - $48,600
· manufactured home lot - $16,200
· manufactured home & lot - $64,800
The maximum Mobile home loan repayment terms are also prescribed thus –
· 20 years for a loan on a manufactured home or on a single-section manufactured home and lot.
· 15 years for a manufactured home lot loan.
· 25 years for a loan on a multi-section manufactured home and lot.
The eligibility criteria for barrowers to purchase Mobile homes to be financed with the help of HUD are as follows:
· Have sufficient funds on hand to make the minimum required down-payment of 5 percent.
· Be able to demonstrate that they have adequate income to make the payments on the loan and meet their other expenses.
· Intend to use the manufactured home as their principal residence.
· Have a suitable site on which to place the manufactured home. The home may be placed on a rental site in manufactured home park, or on an individual homesite owned or leased by the borrowers.
These are the basic information for availing home loans for purchase of Mobile Homes through financial assistance from HUD and all further details can be had from the official site of HUD online.
July 3rd, 2008
The world press is publishing news day in and day out about the ongoing crisis in U.S. real estate market, where house owners are the most distressed lots – either forfeiting their equity to foreclosure epidemic or having sleepless nights as to how to sell of their homes for a reasonable price. You can be a home owner and still be singing without these worries and hassles, if only you acquire a Manufactured Home or a Mobile Home.
The advantages are countless. Starting from the fact that with a Mobile Home, you decide the location where to live – a pollution and noise-free outskirt of a big metro; a beautiful landscape on the foot of a hill; a lavish green park side; or a breezy seashore side. The first foot you put down from your home entrance is on earth – no dizzy heights; no lifts; no cubicle stuck with a narrow sit out and coming down and going up for every day-to-day activity. Commuting to your work place with long drives? No way! Your house can come nearer to your workplace by towing in just hours. And the cost? Does not need a fortune to swipe off all your future earnings and savings. Just a fraction of what it costs to a brick and mortar built home, which you can easily afford.
Modern technology of Manufactured Homes has come a long way from the “Caravans” of the good olden days. Whatever comforts, conveniences and amenities you desire in a custom-built home are made available to you when you describe them to the manufacturers and get with high standards. Living with your kids and family members is all fun and hassle-free in a manufactured home of a selected design by you. This way you are free from financial worries, ups and downs of real estate market trends, and lose sleep thinking what will happen to your financial commitments if your home could not fetch the right price in the soft market and so on.
June 29th, 2008
‘Green’ is the new buzzword going around. Clean, safe, energy efficient - it’s a way to contribute to the well being of our Mother Earth. It only makes sense to take an old product and turn it into a new green product. A mobile home, designed with energy efficiency in mind, fits the bill and makes cents in the pocketbook.
Green Mobile homes are not available yet. Currently there are companies planning the concept of what these mobile homes will look like, developing the marketing approach, considering financing options, and seeking relative business partnerships to promote and mass market these manufactured Green Mobile homes.
What is interesting about the increase in the new ‘green’ movement is that it is nothing new. The ‘green movement’ has slowly evolved from the use of active and passive solar systems and energy efficient appliances in private homes to conscientiously designed commercial and retail space. Now the concept is finally focusing on affordable eco friendly mobile homes.
A professor of Architecture at Mississippi State University, Michael Berk, has created the “Green Mobile.” This housing unit is affordable, designed to recover lost energy costs, and create a comfortable and energy efficient home. It features improved insulation, energy-efficient appliances, and the use of natural daylight and smart ventilation systems. This living space is esthetically pleasing and comfortable. The unit also includes an option for installation of a solar photovoltaic system. These homes will cost about $50,000 with anticipated potential for appreciation in value.
Berk is currently working with the Federal Emergency Management Agency’s Alternative Housing Pilot Program to modify the design of the GreenMobile and create a stripped-down model called the EcoCottage. The plan is to use these EcoCottages as alternatives to the FEMA trailers traditionally used in disaster-affected areas. A federal grant of $5.8 million will certainly help Berk and others realize their vision to see Green go mobile.
January 28th, 2008
Manufactured homes are set on foundations on land you may acquire or already own. These homes are affordable and cheaper compared to having a traditional home built. They come with a wide variety of floor plans and with many custom options.
When considering the inconvenience of having a home constructed for you a manufactured home is a good alternative. You can save the daily hassles related to new construction because your factory built home is transported to your location.
Since 1974, HUD, the United States Housing and Urban Development office regulates construction and safety standards for manufactured homes, thus making manufactured homes a viable option as it relates to the national housing markets.
There are financial considerations when looking at the purchase of a manufactured home. Although the homes are cheaper than stick built homes, manufactured homes have higher interest rates. The terms of the loan are also shorter then regular housing. These two things alone will effect your monthly mortgage payment. While manufactured homes meet federal requirements for construction, they still tend to depreciate and banks see this as a greater risk compared to traditional homes.
As with any property loan, evaluation of your financial rating, past credit history, and debt to income ratio is a recipe for closing a deal. Many lending institutions will consider your bid for a loan, but you must know the year, make and model of your home. Buying your manufacture home from a company that has been in business a long time will help. Compared to loans for a traditional home, a manufactured home can put you in a home of your liking in much less time then that of building a new home on your land. It will also save you many headaches and make the dream of home ownership a reality.
January 25th, 2008
Though it is tougher for tenants to get loans to buy mobile homes than homeowners, there are loans that are available. The question is, should it be a secured or an unsecured loan? Because he has no equity, a tenant cannot get a secured loan against that but what could be done is to put up the home that you buy as collateral. Let’s take a look at what loans are available and what these two types of loans entail.
Secured loans are tied up with the property – in this case, your mobile home. So unless you keep paying your mortgage installments on time, you could lose your home. Now if you have no other place to go to this could be a disaster.
An unsecured loan on the other hand, does not tie down the mobile home in case you can’t pay an installment or you pay it late. Here, the lender cannot come and take the vehicle away and there is a legal process which has to be gone through.
You will find it easier to get an unsecured loan and very often, you can get your mobile home in a few days. You can go online and look for brokers who are well-versed with this and they will find you the lenders, and also give you competitive prices so you can choose. Try and work out the best deal with the broker so you can then proudly be the owner of your new mobile home.
January 20th, 2008
Mobile home technology has ensured that the comfort within them is far better today than what it used to be. More and more people are going in for this type of home and for this they also look at mobile home loans. It is important to know that the mobile home you want to buy should be on land that can be bought along with the home or the government should be able to provide the land. But there is difference between getting a loan for only the mobile home and getting a loan for both land and home.
Loan terms for these two types are very different and you must find out which type you need. At times mobile homes without land can also be considered under mortgage home loans where it does not cover the amount needed to buy the land on which the mobile home sits. These are also known as chattel loans.
Chattel loans are handy when the mobile home you are looking for is sitting in a park or in communities. Chattel loans also help when you cannot afford to buy the land. A good option is to first finish the loan for the home and then if finances permit you can take another loan and buy the land too.
But there are different regulations for different places. There are some states where the loan is used to buy both land and mobile home and these loans are then recognized as mortgages. This basically means you get the benefits of any rebates, subsidizing and taxes as applicable on that category. Your local regulations will be able to tell you which are the best loans to get.
The best way to find good deals on mobile home loans and with land or without the land is to go online. You will get an idea of the different regulations applicable in different states and you can see how to tailor your requirement so you get the best deal and it may be cheaper than what you started out with.
Vendors on the internet are always willing to supply quotes and information so you can compare deals and offers and take the one that fits your bill the best.
January 10th, 2008
The Blue Book value of mobile homes is meant to serve as a vehicle appraisal service. Previously there were many books for this function. Today, one of the more definitive ones is the National Automobile Dealers Association or the NADA that has been publishing since 1933. The NADA Manufactured Housing Appraisal Guide had been identified by professionals to be more than useful to find out the value of a manufactured or mobile home.
Now, there are a variety of rating parameters that are used to estimate a mobile home’s Blue Book value. Firstly, there is model and size of home, then there is the age, and geographical location and the make. To knowing the Blue Book value is something that is quite useful if you are selling or even buying a mobile home. Most lenders would ask for the Blue Book value when one is taking a mortgage to purchase a home.
Even if you have the book at your disposal, it is still a good idea to get a professional appraisal. The formula for determining book value is actually complicated and a better opinion wouldn’t hurt much. The Book Value for mobile homes and areas that are considered average and low-quality can be easily determined while sometimes it just isn’t. One can also determine the value of your mobile home by purchasing such services from certain internet sites.
The NADA guides are also known as one of the prime providers of vehicle information to a majority of the nation’s leading banks, dealers, insurance companies, government agencies, credit unions, fleet and lease organizations, and financial institutions.
January 6th, 2008
More than 23,000 people live in mobile homes at Davie. And it had come as no surprise that Davie had ordered a halt to the sale of mobile home parks last year, so no residents would lose their homes as many are really incapable of moving. It had also given leaders a little breathing space to help formulate a new report for affordable housing options.
A lot of residents have found mounting numbers of empty lots and truth to the talk of mobile home parks being sold. And many wish to preserve their community, especially as only some 130 families still reside at parks like King’s Manor. Davie residents are now trying to come up with options for the town in possessing affordable housing. One option is the Trotter’s Chase development, a proposal for homes and apartments that will hold dozens of units for people with lower incomes.
According to Davie Mayor Tom Truex, many of these people are so vulnerable. He had also added that it makes sense for builders to set aside affordable units. While another option is to use bonds or low interest loans to permit mobile home residents to own the land their homes sit on.
A lot of people wish for the trailer park to remain, simply to ensure help to people who can’t really afford new homes. And throughout the park more and more lots tend to be empty. The town council had discussed the issue predominately in the recent past, and is the first South Florida community to delve into the issue.
January 4th, 2008
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