Manufactured Home Financing Tips

During their inception, manufactured homes were called “mobile homes” and were considered an unconventional and temporary housing option. Yet, as times have changed, so have the perspectives regarding this residential option. Manufactured homes have now become a popular choice of American homeowners as permanent quality housing that is at least equal or, in some instances, superior to a typical site built home.Therefore, more and more people are looking for manufactured home financing tips.

There are two types of situations manufactured home buyers should understand before beginning their research. If you are purchasing a manufactured home to have installed on rented property, the home is considered personal property. But if the manufactured is to be installed on land that you own or land you are purchasing, it is considered real property. There are also situations in which a loan includes the land, site preparation, and manufactured home purchase. Each situation calls for a different financing option, so it is important to include information and total cost of the entire plan when speaking to lenders.

Do Your Homework

As with any other buying decision, it is important to shop around when looking for a mortgage company to work with. If a lender makes you an offer, that doesn’t necessarily mean you have to jump at it and say yes. Look at several lending institutions, schedule appointments, and request information about how to finance manufactured homes. Ask for a copy of the lenders’ basic manufactured home financing program. Here are some additional questions to ask:

— What type of loan do you qualify for? Will it be a traditional mortgage, a construction loan, an end loan or a personal loan?

— What are the advantages and disadvantages of each of the loan options you qualify for?

— If you choose an “end” loan, how long will it take for retailer and contractors working on the project to receive their payments?

— During the manufactured home financing process, do you work in conjunction with the funding requirements of the manufactured home retailer?

Follow Through With Your Research

Once you have found a lender you are comfortable working with and will meet the coordination criteria of your retailer, ask a lot of questions. The lender should also explain how many years you’ll be paying on the loan. He/she should explain the interest rate and whether it’s fixed or adjustable. In addition, the lender should discuss your credit report with you. The information found on your credit report provides the lender with with an insight into your credit history and determines the interest rate.

Consider Retailer Financing Programs

If you are having difficulty securing financing for your manufactured home, the dealer from whom you are making your purchase will most likely have available financing programs with lenders that specialize in manufactured home financing. The terms and conditions of these loans are usually competitive and less complicated than financing obtained from a lender not as familiar with manufactured homes.


(Photo via Clayton Homes)

Recommended Posts