An overview of mobile home loans
If you want to fulfill your American Dream of owning a home, then there are manufactured homes for you. In order to own the mobile home or the manufactured home, there are manufactured home loans available for you. Mobile or the manufactured loans are first built in the factories and thereafter it is taken to the site. Thereafter, it may or may not be given a permanent foundation. Anyways, there are two major types of mobile or manufactured home loans – mobile home mortgage loan and the personal property loan. If the home under consideration has some permanent foundation, then you can opt for a mortgage loan to buy either land or home or for buying both land and home. The usual sources of mobile home mortgage loans are credit unions, brokers, mortgage companies, lenders, local banks etc. When you apply for such loans, lender will charge fees such as loan application fees, origination fees, loan doc preparation fees, credit report fees etc. Personal property loans are meant for the purchase of homes on a rented lot in mobile home parks. Parties who sell mobile homes offer personal property loans too.
In case of mobile home loans, mobility is very important. With less mobility of a manufactured home, a consumer can get a better deal. Conventionally, mobile homes are financed as personal properties. Usually it requires to make 10% down payment and the remainder has to be repaid over a period of 10 to 15 years. Rate of interest associated with mobile home loans is higher than the conventional mortgages. The rate of interest charged on manufactured home loans is similar to the rate of interest charged on boat and car loans. Anyways, the rate of interest charged on manufactured home loans is tax deductible.
Mobile home mortgage loans are very common in the country. But, some recent changes in the manufactured home loans industry have enticed more lenders in the industry. Moreover, 5% down payment requirement and the facility to pay off the loan over 20 to 30 years offered by some lenders have attracted more customers too. Anyways, in case the underlying property is immobile and in case the homeowner owns the land also, then that home loan is considered as mortgage loan.
A large variety of mobile home loan products and programs are available at the market place with varied down payment requirements and varied size of the loans. Usually the down payment may vary from 5% to 20% and the term of the mortgage loan can extend up to 30 years. Anyways, the most distinguishing feature of a mobile home mortgage loan is that rate of interest on a mobile home mortgage loan is higher than the rate of interest on a traditional home mortgage loan. The reason for charging high rate of interest is quite understandable. Usually, high rate of interest is charged in case a customer has few assets to repay a home loan. Buyers on manufactured home loans are in a budgetary tight spot. So the rate of interest is comparatively high in case of manufactured home loans.
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