Mobile home loans – The main features

A mobile or a manufactured home is a movable home which is built in a factory and then taken to the place where it will be affixed to the ground. Such a property is manufactured as per the Manufactured Home Construction and Safety Standards set by the U.S. Department of Housing and Urban Development. The features are as follows:

There are loans available for people to purchase a mobile home with the land and also to buy without the land.
Loan plans for mobile homes are very alike for site-built ones. Lending institutions give general and also government funded loans.
The loan terms usually are in the range of 15 to 25 years and are available with both rate types, i.e., for fixed and also variable.

Types of loans available:

Title I Manufactured Home Loan :

The loan is provided by the lender but the Federal Housing Administration insures the lender in case the borrower fails to repay the dues. For Title I loans, the period of repayment generally range from 15 to 25 years.

VA Guaranteed Manufactured Home Loans: These types of loans are available through various lenders and are guaranteed by the VA. However, the VA only guarantees the loan and do not actually offer the loans. All veterans eligible for the loan can receive financing for up to 40 percent of the requirement or can avail a maximum limit of their entitlement depending upon the eligibility.
Loans from online lending institutions: There are many online lending institutions which have made the mobile home financing easier for people to qualify for. Online lenders are normally more flexible and offer financing to those who need the loan regardless of the type of home that is being purchased.
Retailer Loans: Many mobile home manufacturing and selling companies provide mobile home financing to consumers. They might be suitable option in some cases as interest rates and the loan terms offered are often more reasonable.

Anyone willing to take a mobile home loan has to go through the similar process as in getting a residential mortgage. One has to take care of his finances, think about his affordability and then analyze his overall financial situation including other debts and liabilities, if any. And, one should do enough of loan shopping so that he is able to sort out the loan offer that best suits his requirements.

Some Resources:

Mortgage Loans Guide – Mortgage Loans provides articles, news, videos and resources on all aspects of Mortgage Loans. Our website is an information library and you are welcome to a complimentary report on ‘Private Mortgage Insurance.

Texas Reverse Mortgage Information – Information on Texas reverse mortgage.