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.
Entry Filed under: Manufactured Homes