When you have your eye on the perfect home, you want to be able to make a move as quickly as possible.
While you’re looking for the perfect number of bedrooms and the ideal color scheme, spend some time considering how you’ll finance your purchase. Your financing options shouldn’t hold you back or delay your housewarming celebrations.
Conventional Mortgage Loans
A conventional mortgage loan can be applied to your manufactured home, but some strings may be attached. For example, you typically have to convert your home to real estate. In short, you’ll probably be required to ensure it’s not able to be mobile any longer by connecting it to a permanent foundation.
Conventional loans typically require a down payment, but they have very competitive rates and terms that may make them an appealing choice for potential homebuyers.
FHA (Federal Housing Administration) Loan
The Federal Housing Administration offers backing for some loans you can secure through traditional lenders. These loans generally have good rates but many have more stringent criteria for qualification and repayment.
These loans are secured through the Veterans Administration for buyers who meet their criteria, including military service (yours or your partner’s) and credit criteria. VA loans have max terms allowed for manufactured homes, so take time to understand how their time frames impact your monthly payments before making a decision.
A chattel loan finances your manufactured home as a piece of personal property, rather than as traditional real estate. These loans can be used when you are renting the real estate on which your home will sit, rather than owning the property outright. Chattel loans can give you an additional option for financing, but their rates may be more expensive than if you are able to purchase the land on which your home sits and access other loan types.
These options, as well as additional financing choices, can help you get into the home you want with a loan you can afford. When considering a manufactured home and determining what you can afford, it’s important to also factor in the cost of insurance, which your lender will likely require to protect their investment – and yours – in your new property.
If you’re ready to buy a manufactured home, Magnolia Estates can help. In addition to providing well-designed, safe, attractive homes, we also have relationships with a variety of lenders who can help you secure financing and make your homeownership dreams a reality.