Have you decided a manufactured home is the best choice for both you and your family? If so, it’s time to search into the various types of manufactured home loans. Manufactured home loans can help you be able to afford the manufactured home you desire, for a low monthly payment. You might be able to find your manufactured home loan via a bank, via the new mobile home dealer or via another loan provider.
A manufactured home loan primarily does the same thing a traditional home loan does, meaning that it is meant for the purpose of financing the cost of your mobile home purchase. However, there are many different types of manufactured homes, depending on the type of property you’re financing, your credit situation and other factors. Most often a mobile home loan will be similar to a vehicle loan. Much like a car loan, you are able to expect no closing costs but you may need to pay transfer taxes (after which you’ll get a title to your new home).
However, most lenders will give a homeowner up to 15 or 20 years for a mobile home loan. This all depends on how much you’re borrowing and the age of the home.
While you will find similarities in car loans and manufactured home loans, you will find also differences. For instance, a traditional mobile home loan will carry terms of 15 to 20 years whilst a car loan will often be limited at 5-7. Of course, the length of the loan terms for a manufactured home will depend about the cost of the home and the age of the home being financed.
Information collected by the lender such as credit scores and the amount being borrowed can affect interest rates and other details of the manufactured home loan, as well as the loan’s terms and length. These factors will vary greatly from lender to lender.
A lender of any type of loan goes through risk assessment before they approve a loan. Most lenders consider a mobile home loan much riskier than a traditional home loan or a modular home loan because a mobile home can be easily moved if you go into payment default.
To have the best chance of getting a fast approval from a bank for a manufactured home loan, it’s best to start with the bank you currently do business with. Whenever a bank already knows you’re loyal to them, they'll be more likely to finance you even if you have less than perfect credit scores. You may also find you will have less trouble and stress getting all of the paperwork for the application and loan processing completed because the bank already has much of your financial information on file and can often transfer it easily.
One of the most important parts of applying for a manufactured home loan is to take the time to research your options. Go to several lenders to get interest rate quotes and great faith estimates. Look at your options and choose the one you feel most comfortable with. After all, it could be something you live with for the next 15 years.
Jamie Jake writes for J and M Homes about manufactured homes, park model homes, the new Park Model Homes and more. Jamie has has been providing manufactured home buyers with valuable information about mobile homes, park model homes and manufactured home financing for several years. J and M Homes specializes in manufactured homes and manufactured home financing options for retirees, vacationers and many others.
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