California Mobile Home Loan
January 19, 2009
Mobile Home Loan
Manufactured or mobile home loans are covered by program approved lenders, who extend the loans to the mobile home owners from their own funds. The customer’s credit history plays a vital role in the sanction of funds.
Essentials of manufactured or mobile home loan eligibility:
The purchase of a home is one of the biggest investments a person makes in his or her lifetime. It hardly matters whether the investment is in a regular brick and mortar property or a manufactured or mobile home, both can be funded and insured.
In the case of a manufactured or mobile home, the loan amount is extended to eligible borrowers to purchase the manufactured home. The credit is made available on the basis of the applicant’s credit history, as stated on the credit report and his or her ability to repay the loan amount. The repayment is designed in regular monthly installments. The interest rate for the manufactured or mobile home loan is usually fixed.
Manufactured or mobile home loans:
The manufactured or mobile home loans are available for the purchase and refinancing of a manufactured home. They are also extended for the development of the lot on which the manufactured home is to be placed and in combination, to cover the cost of the manufactured or mobile home and the lot. The condition however, is that the manufactured or mobile home must be used as the primary or principal residence by the borrower.
The dollar limits set on the loans extended to the lot and in combination may be increased in designated high-cost areas. It is very important to personally sit down with the funding agency and negotiate the interest rates and amount of loan.
The manufactured or mobile home loan financers:
There are a number of resources online and offline that enable you to tap the manufactured or mobile home loan lenders and even calculate the interest rates applicable on certain terms and loan amounts.
The usual loan term in the case of a manufactured or mobile home varies between 15 and 25 years. The loan term largely depends on whether the loan is for a manufactured home or a single-section manufactured home and lot or a multi-section manufactured home and lot. Manufactured or mobile home financers are easily accessible via dealers or retailers that sell the homes. They help you to locate the lenders in your area who specialize in financing manufactured homes, once you decide on any one. You could even look up the yellow pages of your telephone directory.
Important verifications while buying a manufactured or mobile home:
It is very important to check on the compliance of the manufactured home with the regulations laid down by the National Manufactured Home Construction and Safety Standards. The lender should also be approved and licensed and should be able to explain in detail, the mortgage credit and income requirements. You need to also verify whether or not the lender offers assistance in consumer protection. The mobile home, the lender and the deal must meet the National Manufactured Home Construction and Safety Standards and in the case of a new home, the manufacturer must provide you with a one-year manufacturer’s warranty.
Personal checks when planning the purchase of a mobile home:
You need to ensure that you have sufficient funds to make the minimum down payment. When calculating incurred expenses also consider whether or not you have adequate income to make timely payments on the loan and meet other mobile-home related expenses. Check if you are in a position to use the manufactured home as your principal residence immediately or not, as this is a prerequisite that is an important condition for the loan. You should personally check the rental site in a manufactured home park or the individual home site your plan to own or lease, prior to putting pen to paper.
It is very essential that the manufactured or mobile home is installed on a home site that meets the local standards established and has an adequate supply of water and functional sewage disposal facility. The finance may be extended towards built-in appliances in the mobile home, equipment and carpeting.
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By Gaynor Borade |
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