A mobile home is equipped with all the advantages of modern day living. It can give you a new experience away from the disturbances of towns and cities. Mobile home as the name suggest is a movable home that is equipped with complete plumbing, electrical, and heating facilities and are usually less expensive than site built homes. Do you have enough funds to finance the purchase of a mobile home? If not, then you need not worry. You can apply for a mobile home loan which will give concrete shape to your mobile home dream.
Mobile home loans are used to finance the purchase of a mobile home. The loan is secured against the home. A mobile home loan is also known as manufactured home loan. Before applying for a loan, you have to decide which mobile home you want to buy which will help you to find out the amount you need to borrow.
Features of a mobile home distinguish it from other residential homes. Mobile homes are housing units built in factories that are equipped with all the modern conveniences of a stick built home. It is then moved to a site for installation on a relatively permanent site and used as a residence.
Once you decide the mobile home you want to purchase, the next step is to find a suitable mobile home loan for yourself. There are two types of mobile home loans available in the loan market - mobile homes with land and the other one is mobile homes without the land. Most conventional loan lenders require the mobile home to be on a permanent foundation with tie downs. Certain lenders will participate in lending in mobile home co-ops. Mobile homes can be significantly cheaper than traditional homes depending upon the size and amenities.
Mobile home lending is considered to be a risky task even if you have a good credit rating. There is big risk involved for the lender; a borrower may fail to repay the loan amount or the monthly payments. The loan is secured on the mobile home but there remains a threat that the value of the home depreciates over the time.
Consideration must be given to the cost involved in buying a mobile home such as transportation cost and set up cost. These costs may make your purchase too expensive. So, estimate these costs before you decide which home to purchase.
Owning a home is a privilege and a well built and furnished mobile home can be a dream true for some. Your dream to owning a mobile home can be realized with a mobile home loan. Shop around! Vist the HUD website for the latest information regarding mobile homes and their requirements. This will help to get a mobile home loan faster.