The term “manufactured home” was adopted in 1980 by the the United States Congress to describe a type of house that is constructed in a factory to comply with a building code developed by the Department of Housing and Urban Development (HUD). In the past, manufactured homes were called “mobile homes,” a term that many people still use. However, “mobile” is no longer an accurate name because fewer than five percent of such homes are ever moved off the owner’s original site.
Manufactured homes are not what they used to be and a lot of people who purchased manufactured homes 2 or 3 years ago are much better off than homeowners who purchased large homes they could not afford.
Many Americans gambled on the myth that property and house values would continue to rise indefinitely. They didn’t. In fact many homeowners are faced with the reality that their home is worth much less today than it was 3 years ago, 2 years ago, even last month.
That is what the current mortgage crisis is all about, home buyers who walked away from a home with a risky loan and where the home was worth much less than the amount financed.
But Manufactured home buyers have fared much better. Their manufactured home may not have gone up in value, but if they bought smart, their home is still worth close to what they paid for it.
Getting your mortgage on a manufactured home…
In The Process of Purchasing A Manufactured Home, you want to use a lender that has experience with mortgages on manufactured homes. Buying a new manufactured home can be a source of anxiety, frustration — but also a huge sense of accomplishment.
Many lenders do not offer any programs for homes located in a park or on leased land. These types of transactions do not fall under the jurisdiction of real estate and are considered personal property loans Melbourne much like an automobile loan.
You are much better off if the home you are looking at is on its own parcel of land and permanently affixed to a foundation.
Also many lenders will not lend on any home that was manufactured prior to July 15th of 1976. and do not offer any type of rehab loans so make sure the property is not in extreme need of repairs or rehabilitation before applying for a mortgage on a manufactured home.
Getting a mortgage loan on a manufactured home isn’t as difficult as you might think. You may be surprised to see the variety of loan options available.
If you are purchasing your home separate from land, then your only option might be a personal property loan. The home itself is used as collateral for the loan because there is no land to secure the loan. This is popular when a manufactured home is placed in a land-lease community.
If you are purchasing your home and land together as a single real estate transaction, then a real estate mortgage loan is right for you and your rates will probably be much better. In some cases, you may finance your manufactured home and land with a lender who offers traditional mortgage loans secured by your manufactured home.