Manufactured Mobile Home Loans and Refinancing

Manufactured Homes - Buying or Refinancing a Mobile Home

All people interested in getting a loan for a manufactured home should know a few things. Manufactured homes are also known as mobile homes, housing units built in factories rather than on-site, generally carried by trucks or trailers over highways, directly to the place where they will be occupied. Many people prefer this type of home due to several factors including the place where they want to live, budget and other factors. Because manufactured homes are less expensive than on-site built homes, it is easier to buy one. Doing a little research, you can find good.

deals to apply for a manufactured home loan. However, before going ahead determine how much can you afford, consider the monthly payment and your current income, but also the kind of home you want to buy and your credit history, which is important in order to get your application approved. Manufactured homes are an option to save money so make sure you are getting a good deal instead of ending up paying much more than the cost of a tradition on-site home.

Although manufactured home loans are associated with high-density urban development or in rural areas, anyone, anywhere can get a manufactured home, however, some lenders classify them as vehicles due to the tendency of the housing market, depreciating over time.

Depreciation becomes a problem when you try to finance a manufactured home through a bank, because they prefer a solid asset with possibilities to recoup or sell if the borrower ends up defaulting on the loan. Depending on the model of home chosen, depreciation may have a lower impact.

Generally, double-wide manufactured homes value better and depreciate less than single-wide models, which are the two major types of homes available for purchasing, although some manufacturers have triple-wide models. A single-wide manufactured home is 16 feet or less in width, while double-side are sized 24 feet or more wide, being sent to their site as two separated units.

Although banks do not seem to be interested in offering manufactured home loans, a few of them may still consider it. However, you can save money and time by going directly to lenders specialized in manufactured homes credits. In fact, many manufactured home constructors may recommend a lender or even have financial programs to make it easier for you to apply for a loan.

Because manufactured loans are associated with real mobile homes moving around, manufactured home lenders typically require that the homes be permanently affixed to a foundation in order to grant the loan. When you buy a manufactured home, constructors can also recommend a location, such as rented lots, where the structure should be left for its life, although homes retain the ability to be moved.

As noted before, manufactured homes depreciate sooner and higher than traditional homes, a decisive factor for lenders who usually finance only homes built after 1984 or so, although they may consider older models, not dated before 1976. In addition, lenders and borrowers must consider zoning laws before applying to the place where the homes will be installed.

Optionally, the borrower may opt for another type of manufactured homes available in the market, known as modular homes. This kind of model is built in pieces, sent on trucks to the property and assembled by local contractors, which is almost impossible to distinguish it from a stick-built home once the modular home is assembled.

Modular homes retain the advantages of a manufactured home, are welcome in most neighborhoods, and both lenders and banks finance them like any other traditional home.

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