About Mobile Home Loans
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.
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