Manufactured Home Loans
As far as home loans are concerned, it is possible and very common now that you can get a home loan for financing the purchase of a manufactured home. However, unlike borrowing to finance a conventional or traditional home, getting a loan for manufactured homes are quite difficult.
Usually, manufactured home loans mean higher interest rates. Because of the rising number of delinquencies and foreclosures, lenders or mortgage companies are now making it more difficult for people to get loans. In fact, even people getting a loan to finance the purchase of traditional homes are now having a tough time getting good mortgage deals with favorable interest rates. Just imagine what it would be like getting a loan for manufactured home with favorable interest rates.
Today, many mortgage lenders are now requiring a 10 percent down payment for a 30 year fixed rate mortgage on loans for financing a manufactured home. Compared to the past, people who qualified for mortgages for manufactured homes didn’t even have to put any money down or only 3 percent down payment is required and even less. There were no fees and people can have the option to lower the interest rate by getting a 20 year fixed rate mortgage or less for financing manufactured homes.
The Federal National Mortgage Association or Fannie Mae is a publicly held company which was chartered by the congress in order to provide a steady supply of cash to finance mortgage loans for people. Presently, Fannie Mae is the United State’s largest source of money for mortgage loans. It is also the premier company for people who are first time home buyers.
Although manufactured homes are quite cheaper than traditional homes, there are factors why mortgage companies do not encourage the purchase of such homes. There are so many risk factors for the mortgage company. Aside from the given risk of being delinquent on payments, which is very common, manufactured homes also depreciate quickly in resale value. What this means is that even when the mortgage lender forecloses the property, it is at risk that the property will decrease in value. Therefore, there is a great chance that the loan will never be paid fully even when it has already been foreclosed.
You can still find some great mortgage deals for manufactured homes. However, you have to consider the fact that you won’t really find one that is comparable to deals offered in mortgages for traditional homes. You may want to try shopping around from one mortgage lender to another mortgage lender. In time, you will be able to find the right type of deal that you can truly afford.
There are some financial institutions existing today that have mortgage programs designed for manufactured homes. However, you need to dig extra deep in order to find such financial institutions. Also, try to watch out for hidden fees.
One tip you can use if you want to apply for a manufactured home loan is that you can try increasing its value by setting the home in a fixed foundation. This method will actually increase the value of a manufactured home, which means that you will find it easier to apply for manufactured home loans. In fact, you may even find great mortgage deals for it.
Do this and you will see that getting a loan to finance the purchase of a new manufactured home will be easier and you will also be able to get the best deals available for manufactured home loans.