Manufactured Home Loans

Written by Beth Hrusch
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Just as the manufactured home is different from those that are "stick-built," so, too, is the loan needed to finance its construction. This is mainly because of the special considerations required of manufactured home building. All homes of this type must be built in accordance with Federal standards, which deal with many factors that relate to, among other things, the quality of construction and the ability of these homes to resist high winds.

Manufactured Home Loans are Specialized

The mortgage for a manufactured home will be dependent on the situation that exists at the time. If the home is being sold separately from the land, then it may be considered personal rather than real property when financing is put together. The borrower will be offered a personal loan at a higher interest rate, but it may be possible to lower this rate by putting more money down on the home.

If the borrower is purchasing the land and the home at the same time, then a land-home mortgage is a possibility. This transaction is just like the purchase of a stick-built home on a piece of property. Federally-funded programs may give those with less money to put down more options, but they involve more paperwork and therefore take more time to get approval.

Whatever loan ends up being the right one, today's manufactured home owner has a better chance of getting good rates and terms than ever before. As the quality of construction improves and the perception of these homes as permanent becomes widespread, the lending industry has come to recognize that modular homes can be considered real property. Thus, they can be mortgaged in ways similar to a traditional home that is built on-site.

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