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What You Should Know About Mobile Home Loans
By Ray Lam | June 30, 2008
Mobile homes are included under the category of real estate. Hence, companies that provide home loans also provide loans on mobile homes. However, the requirements and natures of these loans are slightly different than loans given for fixed homes.
You will find that these FHA loans do have certain requirements. For example, you must be able to provide a five percent downpayment and have an acceptable credit rating. There are maximum loan amounts and maximum terms. For example, the loan term requirements are 20 years for a mobile home, 15 years for a lot and 25 years for a mobile home and lot. There are many mobile home sellers who also offer financing for their customers. When you go shopping for a mobile home, be sure to ask if the company offers any type of loan program.
The very fact that mobile homes are movable increases their insecurity about the money lent. Many banks and lending organizations have today completely stopped writing loans for mobile homes without land.
It is comparatively easier to get a loan for a mobile home with the land on which it is installed. These loan amounts are higher, because they also provide for the price of the land. Again, these loans do not provide for the taxes that may go along with the land.
Not all mobile home loans and mortages are FHA. Many are provided by private lenders who specialize in offering loans for mobile homes and/or manufactured homes. As mentioned earlier in this article, interest rates on some of these privately funded loans can be quite high. Even so, mortgage loans are often available for refinance at a later date. This is why many people who dream of owning a home start off with a mobile home or manufactured home.
Topics: Finance |