The word ‘manufactured’ gives one an idea of the type of house that falls in this category of home loans. Manufactured homes are factory built homes that can be transported to any location needed on their own chassis and wheels.
For a finance institution to finance a manufactured home, it has to be doublewide and on based a permanent foundation on land owned by the borrower. Sometimes, manufactured homes are financed with a retail installment contract that is provided by the retailer who is selling the home. Although the lender may easily grant a conventional mortgage for manufactured homes, they actually prefer giving loans for homes placed on a permanent foundation, as the risks involved in such cases are lower.
It should be remembered that manufactured homes are eligible for FHA and VA loans, so it is wise to apply for them. There are federal standards that help to regulate the quality of the manufactured home, and these standards are in turn based on the strength, durability, fire resistance, energy efficiency, transportability, and quality of the homes. It is only based on the guarantee of these standards that manufacturers readily offer a warranty to cover the home and it’s systems during the stated warranty period.
Like all other home loans, this loan requires that you have a good credit. The better your credit is, the easier it is for you to get the loan. You have to also be ready to make a down payment when applying for the loan which may be as little as 5% of the loan amount as down payment, but the larger the down payment you can make, the lower your corresponding mobile home loan interest rates will be. Unlike many interest rates, the rates of mobile home loans remain stable with no fluctuations.
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