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When it comes to purchasing a mobile home, financing is not that simple. In some cases you can get approved for a home loan just like with a real property but in other cases you need to request a vehicle loan or a loan specially tailored for mobile homes. In order to get proper financing you need to know exactly which loan is your best option.
More than 8 percent of the American population lives in mobile homes or manufactured homes, and there are financers who provide home loans for them. It is believed that one in every five homes sold, is a manufactured home. Mobile homes are made in factories and are then trucked down to the manufactured home community. Another fact reveals that the manufactured homes are often bought with borrowed money or home loans.
Mobile Home Financing Options
There is a criterion in many states of the U.S., according to which, manufactured homes can be bought with conventional home loans. There are many buyers who look for home loans for their mobile homes. Most of the time, the manufactured homes are financed through the dealers who sell them. There are many, who think that the dealers, who sell the mobile homes, are the only ones who lend out money for them. There are many other private lenders also, who deal with these kinds of loans.
There are many other things, beside the purchase of a manufactured home that you have to check out. There are two options that you can exercise: either you can place your home on your own land, or, you can settle on a land that is put up for a long-term lease.
Mobile homes are placed on either concrete blocks, or pads. They have asphalt-shingle roofs. Many of the mobile homes also have a basement. There are singlewide, doublewide, and even triple wide manufactured homes.
In many cases, the private lenders and the taxing authorities do not treat the property as real. One cannot get a low interest home loan for a mobile home, if the state you are living in taxes it as your personal property and not as real estate. That is why the interest rates on home loans and the taxes on personal property are different. Most of the mobile home loans are treated as personal property these days.
Terms Tend To Improve
However, gradually, different states in the country are treating manufactured homes as real estate and not as a personal property of the buyer. This has been accelerated by the entry of Freddie Mac in the mobile homes lending market. Freddie Mac is a corporation that has been sponsored by the government of the United States. This corporation buys mortgages, clubs them together, and sells the final mortgage securities to the investors. Some time back, the Freddie Mac Corp. started buying loans on mobile homes, and treated them as real estate.
The entry of Freddie Mac created a niche for mobile home loans that are now treated equivalently to regular home loans. Till now, regular home loans have been cheaper, by almost 4 to 6 percentage points, than mobile home loans. A deal for a mobile home loan can go from 13 to almost 30 years.
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