Manufactured home lenders have a variety of programs for financing your new or used mobile home. You’ll want to choose the best type for your situation. These include manufactured home loans, chattel loans, and mortgages. When considering which loan is right for you, be sure to shop around to see which offer the lowest interest rates and fees. This can save you thousands of dollars over the life of your loan.
One of the most popular ways to finance a mobile home is a chattel loan. This type of loan is insured by the U.S. Department of Veterans Affairs and the Federal Housing Administration, and is often referred to as a personal property loan. The interest rate for this type of loan is generally between 0.5 and 5 percentage points higher than traditional mortgage rates.
Another popular option for manufactured home buyers is the MH Advantage program, which requires a home to meet certain architectural design and energy efficiency standards, as well as have a sidewalk. Homeowners with this type of loan may be able to secure it with as little as 3 percent down.
Purchasing a manufactured home can be difficult. With a bad credit score, you may be turned down by many of the standard mortgage providers. However, with the aid of a nonprofit, you can improve your credit and get help with down payment assistance. Some of these services also offer debt management plans.
Depending on the lender, the maximum loan amount you can qualify for will vary. For instance, Fannie Mae and Freddie Mac loans are fixed-rate loans, and require at least 3% down payment. USDA loans are available as well, but you’ll need a minimum credit score of 640. In addition, you’ll have to pay an upfront guarantee fee of 1% of the loan.
There are a variety of other manufactured home loan programs, but they can be hard to find. To make the process of qualifying easier, you’ll want to shop around. Once you have found a couple of lenders, you can begin the application process. Each of these service providers has different requirements, so you’ll need to compare them to find the one that suits you best.
The best thing about these programs is that you’ll be able to get a mobile home loan even if you’ve got a bad credit score. As long as you can prove you have a reliable source of income and a permanent place to live, you should be able to qualify for these types of loans. Choosing a lender that offers the most affordable options is the best way to ensure that your new or used mobile home will be financed.
Buying a mobile home is a smart choice if you’re looking to save on your housing costs. Mobile homes come with many advantages over “stick-built” homes. They are more convenient, can save you space, and are relatively inexpensive. Nevertheless, you’ll need to make sure that you can afford the monthly payments and other expenses that come with living in a mobile home park.
