As conventional housing prices continue rising at a rapid rate, the overall demand for manufactured homes or mobile homes has increased significantly. Mobile homes offer improved flexibility in comparison to traditional homes. These are, therefore, more affordable than conventional houses. It is estimated that the average cost of a mobile home is around $87,600.

Mobile homes are available as factory-made houses that are customized in the same way as that of traditional houses. The overall customization will depend on the model of the house you choose -usually providing over 2,000 square feet of living area. If you are out there searching for the best mobile home for your family, it is recommended to consider your options to finance a mobile home at the same time.

Financing Your Mobile Home with Utmost Ease

The overall benefits of living in these pre-constructed housing structures are quite significant -right from being cost-effective to customizability, flexible with respect to the location, and minimal maintenance. However, it is equally important to understand that financing a mobile home will come with its own set of challenges. It will not be the same scenario as that of the traditional mortgage. Are you looking for reliable financing options for your mobile home?

Here are some leading options to consider:

Chattel Mortgages

A chattel mortgage or loan is a specific type of personal property loan that can be leveraged towards buying a mobile home. These loans for buying mobile homes are designed for ensuring the financing of expensive vehicles like boats, planes, farm equipment, or even mobile homes -wherein the property will be offering guarantee to the loan.

Even when you do not own the property on which your mobile home will be positioned, you can think of obtaining a secure form of financing with chattel mortgages or loans. Due to this, chattel loans are quite options for mobile home financing -especially for buyers who plan at renting a particular lot in a mobile home community.

There are some lenders offering access to chattel loans for purchases related to manufactured homes that are usually insured by the FHA or Federal Housing Administration, RHS or Rural Housing Service, and the United States VA or Department of Veterans Affairs. Chattel mortgages tend to feature shorter durations in comparison to conventional loans -translating into higher monthly payments. Still, it can also help in paying off your debts sooner. On the positive end, the closing procedure is rapid and minimally restrictive with chattel loans.

Conventional Mortgages

You can get access to conventional form of financing with the help of the Freddie Mac Home Possible loan or mortgage program. In this program, qualified mobile home borrowers can make a choice between fixed-rate loans (15, 20, 30 years) and adjustable-rate mortgages of 7/6 or 10/6. You can also think of securing a conventional loan with as low as 3 percent down. In some cases, you can also leverage grant money or gifted money to help with covering the down payment.

It is important to understand that a conventional mortgage is not offered any guarantee by the government. A private lender -like a credit union or bank, will offer you the desired loan without any insurance from the respective government. However, you can think of choosing a government-backed conventional mortgage with the help of reliable mortgage programs like Freddie Mac or Fannie Mae.

Personal Loans

Mobile homes tend to be highly affordable in comparison to traditional houses. Therefore, it is possible to finance your dream home with the help of conventional personal loans. As personal loans tend to serve as flexible loans that can be utilized for any purpose, they function excellently as mobile home loans. However, you should know that interest rates for personal loans tend to be higher in comparison to other types of loans -including auto loans or mortgage loans.

The only trade-off with a personal loan is that you are not expected to pay any collateral -implying you will not lose your mobile home if proven default. At the same time, the loan application process tends to be shorter while involving minima paperwork. Another significant benefit of applying for a personal loan for financing your mobile home is that they are typically affordable or almost free to set up.

Steps for Getting Mobile Home Financing

Check the Credit Reports: While applying for mobile home financing, a lender will look into your credit as an integral part of the loan application process. Solid credit scores and clean credit history will make the process of securing loans easier while allowing you to receive better rates as well as terms from the respective lenders.
Decide Whether or Not You are Buying Land in Addition to the Mobile Home: When you are financing the mobile home, the stability of the asset getting financed is crucial. When you own both the mobile home and the land, it is less likely that you will move from the space. This might make a number of lending institutions open to mobile home financing.
Figure Out the Specifics of the Home: The type of mobile home you are looking for will impact the loans for which you are eligible. All lenders have particular lending criteria depending on the value and type of your home.
Start Exploring Financing Options: You can select the type of loan you will utilize while comparing different offerings of different lenders. Loan rates and interest rates for mobile homes can vary significantly between multiple lenders. Therefore, research properly to finalize your choice.
Submit Your Application: You should make sure that your loan application is transparent and complete. Moreover, lenders will need a proper down payment. Therefore, you should make payments upon completing the application.

Factors to Consider When Buying a Mobile Home

While buying a mobile home, you can consider a wide range of factors. Some important ones to consider are:

Location
Size
Type -used, new, or repo mobile home
Budget

Conclusion

If you are looking for more information about mobile home financing, you can contact and hire services from reliable consulting services like Manufactured Housing Consultants.