When you are looking for finance for Manufactured Homes, be smart. There are various options available and the one you choose determines how easy your loan repayment experience will be. All loan types have a different set of advantages. One will be ideal for you. Do your research.
First you need to decide of you want an ARM or a fixed rate mortgage. An ARM is a variable adjustable rate mortgage. In a fixed rate loan, the same rate is charged throughout the period of loan repayment. In the case of an ARM, the loan rate adjusts as the time period of loan repayment changes.
Another important aspect of the loan is the length. Mortgages can last 15 years or 20 or even 30 years. Some are repayable over 40 and 50 years. If the term is longer, the annual payment is lower. However the interest is higher.
You also need to choose between FHA and VA loans. Loan buyers are often attracted to FHA due to a lesser down payment requirement. Often this is just 3% of the home cost. To buy the home you have to meet certain criteria. You need a good credit history. In addition, you need to display a proof of income and the ability to repay the loan.
One requirement is that mortgage income, property taxes and home insurance must not be more than 29 percent of your income. In addition the housing cost and other debts must not be more than 41 percent of income.
United States military veterans benefit from VA loans. It offers attractive financing. With the variety of home finance options available, if you take time out you are likely to find the one best for you.
Entry Filed under: Manufactured Homes