Manufactured Home Loans and Mortgage Programs Explained

There are a number of mortgage loans and programs available to people wanting to purchase a manufactured home and/or the land it will sit on. With the exception of guaranteed loans, you can expect to pay a higher interest rate as manufactured homes depreciate quicker and don’t last as long as traditional homes.

Most manufactured homes are bought with chattel or personal property loans, meaning the manufactured home is considered personal property – like your car – rather than real estate. If you do not own the land where you place your manufactured home, you will be getting a chattel loan. The downside of this type of financing is that, as your manufactured home is not considered real estate, you cannot get any real estate tax breaks.

Down payments for these loans can be as little as nothing, but expect higher interest rates the lower the down payment. Loan periods tend to be shorter, often than 10-15 years, than traditional home mortgages although you may qualify for a longer loan period, especially if you own the land where the home will sit.

Indeed, if your manufactured home is not actually “mobile” – for example, you place it on a foundation on land you own – you may qualify for a traditional real estate mortgage, rather than a personal property loan.

80/20 Loans: These loans require you pay a down payment of at least 20 percent of the purchase price. The higher the down payment, the lower your monthly payments. They will be even lower because you will not be paying private mortgage insurance (PMI) that protects the mortgage company from losing money if you stop making your mortgage payments.

When the amount you owe gets down to 80 percent of the value of your home, contact the company holding your mortgage and have them drop your PMI because it does not protect you…only the mortgage company.

VA Loans: Manufactured homes can be bought by qualifying veterans with a VA guaranteed loan. The federal government guarantees these loans, making them great loans to get because generally no down payment is required and you usually get a lower interest rate. As in the case of most other manufactured home loans, you will not get be able to get a 30-year mortgage. If you are a veteran, definitely look into VA loans when buying your manufactured home.

FHA Loans: The Federal Housing Administration is part of HUD (Department of Housing and Urban Development). It insures private loans issued for new and existing housing and works to get people into their own homes. The main benefit to someone purchasing a manufactured home with an FHA loan is that they always pays the same mortgage insurance rate regardless of their credit score.

FHA Manufactured Home Loan – The Best Way to Finance Manufactured Homes!

There are many types of FHA Home Loans and you can get many types of homes with them. Getting a home loan can come about for many reasons. Most of the reasons to get a home loan, or even a FHA Home Loan include one or more of the following. Often if you are a first time home-buyer you may need a mortgage loan. But if you are looking to buy a manufactured home you will have a hard time finding a loan program to finance it. There is a good loan program for financing the purchase of manufactured homes and it is the FHA Manufactured Home Loan.

If you do not have a lot of money to put down on a manufactured home, you can often qualify for a FHA Manufactured Home Loan. The current FHA down payment amount is just 3.5% of the purchase price. While down payment for mortgage loans is 20% or more.

It is very difficult to find a lender that will do a traditional conventional loan on a manufactured home. One of the reasons is that it much easier to move a manufactured home. This type of home will have a steel beam down the middle of the home making it easier to relocate. This increases the risk for the lender.

If you are a new home buyer and you are looking at a manufactured home, you will want to keep your monthly payments as low as possible. This is the reason manufactured homes are popular, they are less expensive to buy. Now you have to find a loan program to finance the purchase. You may want to apply for a FHA Manufactured Mortgage Loan.

If you do not have the best or perfect credit, or are worried about even qualifying for a mortgage, chances are now you can qualify for a FHA Manufactured Home Loan now. With the economy as it is now, although it is improving, some new home owners and buyers may often worry about what will happen to them or their homes if they fall behind on their payments on their homes.

With a FHA Manufactured Home Loan many of the worries about falling behind on their payments, qualifying for a loan if they do not have the best credit, or any of the usual concerns for first time home buyers are gone. More and more people qualify for FHA Home Loans each day. Getting a mortgage for home is much easier, faster, and often you qualify much easier and faster with more protection than with other home loans.

You will find that with FHA Home Loans there are lower rates. If you have less than perfect credit you can also still get a FHA loan. There are much more protections for your home with an FHA Manufactured Home Loan than you will find with other home loans.

There are also many types of FHA Home Loans as well. You can get a fixed rate loan, adjustable rate home loans, and you can even get a FHA Loan to purchase a rehab home. This means that you have found a house you like, but it needs fixing up or repairs. There are even special FHA Loans for these types of homes as well.

With lower down payment and lower credit requirements, the FHA Manufactured Loan is not only the best loan program but it may be your only choice to finance your home purchase. It is great loan program and you should contact a FHA lender now to get more information.