Today’s real estate market reflects an eclectic array of old, new and alternative home types. Manufactured homes are a specific niche of residences slowly becoming the norm in everyday real estate sales. Securing a financing deal for a manufactured home is similar to a traditional property with some variations.
Conforming to Manufactured Home Definition
Real estate sales depend on proper descriptions of the property to secure financing. When potential buyers apply for a loan, the home must meet the legal definition of a manufactured structure to qualify under its terms. In general, the home must have the ability to be transported through sections. It cannot be considered an on-site, traditional home or a modular purchase. If a semi-truck can haul it, the structure fits the definition.
Widespread Loan Availability
Manufactured home financing isn’t difficult to find once the structure is defined. Banks offer their own loans or buyers can look to federally funded programs. Applicants may also look online for competitive quotes from other lenders. The key to finding accurate quotes is indicating a manufactured property on the application. This indication triggers loans specifically designed for these homes, especially if buyers need a low-interest option to stay within budget.
Qualifying Similar to Conventional Home Loans
Although manufactured homes are a specialized area in the real estate world, buyers must qualify for loans much like traditional homes. There must be secure income proven through tax returns and paycheck stubs. Loan options abound in fixed or adjustable terms along with varying interest rates based on creditworthiness. A strong down payment is always a winning strategy for any property purchase to lower the overall financed amount.
Manufactured Home Financing and Land
One major benefit of purchasing a manufactured home is possible land collateral. Buyers may have open land they own outright. Financing a structure on that land could be easier when the land itself is used as collateral. Interest rates and terms could be reduced dramatically. Buyers have more financial options because they aren’t purchasing both the land and structure, which is inherently more expensive regardless of the property’s amenities.
Discovering options through manufactured home financing takes some help from a real estate professional and lender. Every applicant has a unique credit background, requiring an evaluation of all available options. Manufactured homes are a low-cost choice for many families who want the complete American dream.