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