Archive for the ‘Mortgage’ Category
Manufactured Home Loans
sponsored links
Manufactured home loans depreciate faster compared to traditional homes. Chattel or personal loans are usually used to buy a manufactured home. This is personal property owning the house itself without the lot that it stands on- not a real estate property in itself, much like buying a car. It does not ensure you to have good breaks in real estate taxes.
If you own the land on which this manufactured home will be located, then you can qualify for a longer loan period. Typically in this type of home loan, the loan period is shorter about ten to fifteen years with a lot cheaper down payment but with higher interest mortgage rates. Traditional home loans has higher down payment, average mortgage interest rates and can either have short or longer loan periods depending on the borrower’s preference.
Most of the manufactured homeowners are listed under the adjustable mortgage loans, 2/28 or 3/27 loan programs wherein the rates are fixed for about two-three years and then the rates gets adjusted after that period. Most of them would be surprised to find out that after that introductory rate of two-three years their 6% interest rate has gone up to 11-12% as time comes. Distressed, manufactured homeowners run back to lending companies but they say they cannot do anything about it. The next scenes would be messy, if the lending company does not know how to handle such type of home loans. Saying this, most lending companies stay away from this types of home loans because of its lower rate of being sold to potential buyers due to its terms and conditions.
Manufactured home loans are not among the favorite product loans of the 99.9% mortgage brokers or loan officers. The sad truth is they just do not have the right know-how to do the process in this type of home loans since they usually transact more of the traditional home loans. Although they usually pretend to accommodate this type of loans, prospect manufactured homeowners end up frustrated knowing their request of quotes cannot be available after following up their mortgage broker or loan officer. To prevent this scenario to ever happen to you, take some time off to do your own research. With the help of the Internet, find the lending companies in your local area that specializes in manufactured home loans. Gather as much information as you can so you can ask these lending companies the right questions.
You can avail this type of home loans by some of its most known loan programs. The 80/20 makes you pay about 20% of the purchase price of the house. You should opt to give a higher down payment to have smaller monthly payments and rates without having to pay for the PMI (private mortgage insurance). When you reached about 80% of your loan payments, you can ask your lending company to drop this charge in your payments. VA guaranteed loans can also make you avail manufactured home loans. The federal government usually guarantee this transaction, this is no down payment required but you still have a shorter loan period to think about. FHA (Federal Housing Administration is part of HUD (Department of Housing and Urban Development) and can get you this type of loan because it insures private loans issued for new and existing housing and works for people to have their own homes. The main benefit is that they pay the same mortgage insurance rate regardless of their credit score or standing.
You can have your manufactured home loans for your best interest if you have an idea how it works from the very start. Never tire of exploring the options that are available in the market for this type of home loans.
sponsored links