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Home Loans For Manufactured Homes

If you happen to be a budget-minded homebuyer, there is a strong possibility that you would like the idea of a manufactured home. But for this, you need to get a mortgage first and that is definitely not easy in the current economic climate.

Getting a mortgage for a manufactured house can be a tricky proposition in comparison to a conventional house. It is worthwhile mentioning that plenty of financial institutions don’t deal with the manufactured housing loans. You need to have a good credit rating if you have any intention of qualifying for manufactured housing loans.

There is plenty of confusion regarding manufactured housing, which is quite a number of times applied to any house with pre-made parts. Manufactured housing or mobile homes are completely factory built houses that includes one or more units with a steel frame.

Be ready to pay a much higher interest rates on a manufactured home loan because these houses are treated more like personal property. Good news is that both the FHA and VA provide financing for these homes. You will find variation in the guidelines of FHA on the basis of your purchasing plan. The loan term in this scenario is going to be 15 years.

The VA gives homebuyers an opportunity to borrow up to 90 percent of the buying price of a manufactured house, although local loan limits are going to play a part in this regard. In official terms, FHA will give permission of down payments of as little as 3.5 percent, although majority of financial institutions will need at least 10 percent down.

If you are looking for a much better interest rates, it is advisable that you own the lot where the manufactured house is going to be located and treat it as a permanent foundation. By following this route, you are not going to face any problem in getting a Real Property loan. The best part about this is that it will help you in getting a tax credit on your interest payments. In case if you are renting in plenty, the buying of the house will come under the category of a Personal Property loan and therefore you are not going to get any leeway in the form of interest payments.

Majority of financing for manufactured houses is arranged with the help of retailers of such houses. There is also a possibility that you may get financing through an independent financial institution, but for that you need to satisfy the criteria of a permanent foundation.