Getting A Loan On A Mobile Home |
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More than 8% of the American population
stays in mobile homes or manufactured homes, and there are financers who provide home loans for them. It is believed that one in every five homes sold, is a manufactured home. Mobile homes are made in factories and are then trucked down to the manufactured home community. Another fact reveals that the manufactured homes are often bought with borrowed money or home loans. Many states stipulate that manufactured homes can be bought by conventional home loans. There are many buyers who look for home loans for their mobile homes. Most of the time, the manufactured homes are financed through the dealers who sell them. There are many who think that mobile home dealers are the only ones who lend money for them. There are many other private lenders who deal in these kinds of loans. There are many other things besides the purchase of a manufactured home that you have to check out. There are two options that you can exercise: place your home on your own land or settle on land put up for long-term lease. Mobile homes are placed on either concrete blocks or pads and have asphalt-shingle roofs. Many mobile homes also have a basement. There are singlewide, doublewide, and even triplewide manufactured homes. In the case of many manufactured home buyers, private lenders and taxing authorities do not treat the property as real. One cannot get a low interest home loan for a mobile home, if the state you are living in, taxes it as your personal property and not as real estate. That is why the interest rates on home loans and the taxes on personal property are higher. Most mobile home loans are treated as personal property these days. Gradually, different states in the country have started treating manufactured homes as real estate and not as a personal property of the buyer. This has been accelerated by the entry of Freddie Mac in the mobile homes lending market. Freddie Mac is a corporation that has been sponsored by the government of the United States. This corporation buys mortgages, clubs them together, and sells the final mortgage securities to the investors. Some time back, the Freddie Mac Corp. started buying loans on mobile homes, and treated them as real estate. The entry of Freddie Mac created a niche for mobile home loans, that are now treated equivalent to regular home loans. Until date, the regular home loans have been cheaper, by almost 4 to 6 percentage points, than the mobile home loans. The deal for the home loans can go from 13 to almost 30 years. With a fall in the interest rates, the market for the mobile home loans has gone up. Freddie Mac gives home loans to the buyers of mobile homes at the condition that the ones who place their home on a leased property should have the lease extended by at least five years before the last installment on the loan is paid off. In case the state treats your manufactured home as a personal property, there are chances that your interest rate on the home loan may go up by about 2-3 percentage points. Keep your interest in mind before going ahead with any home loan deal for manufactured homes. |
