California Mobile Home Lenders: The Facts about the Mortgage Programs Available For Mobile Homes in the State Of California

Today, mobile homes are now getting more and more popular in the United States. Even in the Golden State or in California, mobile homes are now very popular for many people. There are quite a lot of reasons why mobile homes are now the preferred homes of people living in California. First, it is way more affordable than conventional homes, and second, it can be moved when necessary.

In California, you will find it hard to get a mobile home financed by large financial institutions. So, how will you be able to get a mobile home if you can’t even get a loan to help you buy the mobile home of your choice?

If you need to get a mortgage loan for a mobile home in California, it is recommended that you should find a lender that specializes in this type of mortgage loan. Mobile home lenders are individuals or businesses that will be able to offer you mortgage loans to finance the purchase of mobile homes if you are a qualified buyer.

However, since mobile homes depreciate in value far quicker than a conventional home, you will find that the majority of mortgage loans for mobile homes have higher interest rates than conventional home mortgages. The reason for this is the risk factor in mobile homes as collateral for the loan. Besides, try to be in the shoes of the lender. You wouldn’t want to loan someone that will give you a collateral that depreciates quickly, would you? What if they haven’t been able to pay off the loan? That leaves you to repossess the collateral that you agreed upon and sell it in order to get your money back. If the collateral depreciates quickly, you will be forced to sell it at a much lower price.

Another reason that mortgage loans for mobile homes have such high interest rates is that it is not regulated by the US government.

These are the reason why interest rates are high for mortgage in mobile homes.

However, even though the loans will be high in interest, this may work in your favor, especially if you have bad credit rating. This type of loan will give you a chance to own a mobile home and also give you a chance to fix your credit score. Just keep in mind to pay your monthly dues on time in order for you to decrease the risk of getting your home repossessed by the lender and also get your credit rating to become worse than it already is.

Also, because mobile homes tend to be much cheaper than traditional homes, high interest rates will not matter as you will be able to afford it because of the relatively low price that the home is worth.

Mobile homes today are quite different in the past. If you picture it as a home with cramped spaces, then you can never be more wrong. Mobile homes today are stylish in design and are also very spacious. Although it may not be the dream home you pictured, it will definitely make your dream of owning a home a reality.

These are the reasons why you should purchase a mobile home in California. If you are unable to finance the purchase alone, you might want to consider getting a mobile home mortgage loan from the lenders available. Be sure to shop around in order to get the best deals possible in a loan program for mobile homes.

Entry Filed under: Manufactured Homes