Mobile Homes or Manufactured Homes are increasingly becoming the buyers’ choice owing to the real estate crisis and recessionary trend of the economy. What were looked down upon as “trailer homes” once are getting importance now, not only because of their less expensive proposition but also the technology advancements in fabricating beautiful, comfortable and amenity-filled structures towards fulfilling the common American dream.
As more number of buyers opt for manufactured home as an entry for home ownership, the concepts hitherto attached with Mortgage loans for manufactured homes are changing rapidly. As of now the manufactured home loan industry is somewhat concentrated, the top ten lenders controlling over 65 per cent of the market.
If you wish to get a leverage in manufactured home loans, the chief requirement is the best credit rating. You can check up the incentive programs available for manufactured home loan barrowers by the local governments. President Clinton’s Home Ownership Initiative of 1996 is noteworthy in creating additional initiatives for manufactured homes. If the proposed manufactured home is going to be your main residence you are given preference.
On an average the term of the manufactured home loan can range between 10 to 25 years. High interest rates compared to custom-built homes are prevalent for manufactured homes, but it is worth going in considering that manufactured homes are fast depreciating in value over the years. But there is also a way out that if you own the land to park the manufactured home in a prime location there is every chance for appreciation of the land value to rake up your equity for refinancing the home loan.
Some tips here if you go for a manufactured home loan:
Ø There are wide variation in products of manufactured home loans from lender to lender and so an extensive search online will be very useful
Ø There is no obligation to buy a manufactured home from a sales person or take the financing offered by them
Ø The warranty and other clauses of a manufactured home brochure need be studied carefully with specific details as who will bear the cost of defects in manufacture or the installation of the home at the site.
Ø Owning the land on which the manufactured home is to be parked is ideal because you can have the tax benefits by titling the property as real property and the property taxes paid are deductible
Ø If you are required to title as personal property, chances are you may have to pay annual motor vehicle fees – so check up
Ø The area at which your manufactured home is going to be installed can gain you value appreciation over the years to come – so this needs your attention.
These are only generic guidance and you can do well to do a good research before buying a Manufactured Home for yourself.
Entry Filed under: Manufactured Homes