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.

Entry Filed under: Manufactured Homes

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