Archive for July, 2008

Mobile Home Lenders Are Soft Towards Bad Credit Barrowers

Manufactured homes or Mobile homes have become the order of the day, arising out of the bungling of the real estate market with custom built housing properties.  The investment needed for a Mobile Home, when compared to a traditional brick and mortar home is far less. As such they are within the reach of many middle-income group families and it goes without saying that in a downward economy and rising cost of living saving money for a custom built house in a prime location can never be aspired for by these people.
For the purpose of a home loan application for a traditional housing property the basic factors checked are the credit history of the borrower as well as the repaying capacity. Barrowers with bad credit history are looked down upon and are diverted to sub-prime lenders with exorbitant interest rates.
But the scenario is entirely different in respect of Mobile Home loans where even applicants with bad credit history are also considered for eligibility with certain flexible and realistic guidelines.  In fact with the foreclosure crisis engulfing the U.S. real estate business and millions of home owners having forfeited their homes to mortgage lenders and have become people with bad credit history thereby, this realistic approach by lenders is timely.
Therefore there are mortgage lenders advertising that they are ready to offer Mobile Home loans with conditions – Loan amounts from $10,000 to $500,000; any year home ok; bankruptcy within 1 year ok; current lates ok; full stated income with 6 or 12 months bank statements; New or used purchases (up to 70%); singlewides, doublewides and triplewides okay; debt to income ratio up to 55% admissible; principle & interest only loans; no prepayment penalties; loan repayment terms 5;7; 10; 15 or 20 years. They are offering loan for main niche as In park homes on leased land.
With so much of flexibility which were never there in regard to the traditional home buying, it is now ripe time for going in for Manufactured Homes that is best suited for you in a location convenient to your work place and with other amenities and comforts.

Add comment July 27th, 2008

Go For a Suitable Manufactured Home Loan

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.

Add comment July 18th, 2008

Manufactured Housing Loans – Some Basic Facts

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.

Add comment July 9th, 2008

Mobile Home Financing By HUD

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.

Add comment July 3rd, 2008


July 2008

Posts by Month

Posts by Category