Mobile Finance

If you're looking to buy property that you can actually afford, then perhaps you should consider a mobile home. If you're looking to buy a new home but don't have adequate cash to make a big down payment, there are low down payment loans just for mobile homes that are available.

However, when you're shopping around for a low down payment property loan, it's essential to ensure that you select a trustworthy lender. There are a lot of scam lenders online who try to take advantage of borrowers who are searching for mortgage loans that allow for low down payments.

There are two familiar types of mortgage loans for manufactured homes and they are as follows:

Real property mobile home loans: These loans cover both the home and the lot on which the home is built. This loan is similar to any other type of mortgage loan and has similar prerequisites for introductory down payment like any other conventional home loan.

Personal property mobile home loans: These loans are meant for just the manufactured home and don't cover the lot. They have similarities with personal loans but might still have down payment prerequisites dependent on the lender.

Other loans of this sort exist, such as construction financing loans, personal property loans and real property loans, which are some of the most popular.

The best place to start your search for a low down payment loan is with the financial institutions that you deal with. They include the following:

The bank or credit union where you have a savings or checking account.

Lenders who have previously offered you a loan.

On certain occasions, lenders offer affordable interest rates and other favorable terms to their existing clients.

This is the reason why you need to begin with lenders that you're already working with. You must remember that your search shouldn't leave out all other lenders, since your current lender might not always offer the best terms or interest rates.

Not every lender offers loans for manufactured homes, so when you're contacting them to make queries about down payment necessities and rates, make sure to determine that the loan is for a manufactured home.

Down payment requirements for manufactured homes differ from one lender to another. The amount that you have to put forward as a down payment is dependent on different elements. For instance, a low credit score might cause the lender to ask for a bigger down payment for approving the loan.

A low down payment on a manufactured home loan might have financial consequences. A low or no down payment might attract a higher interest rate than a mortgage loan with a 20% down payment. You might also face extra monthly fees, like private mortgage insurance. Keep in mind that with larger down payments, your monthly loan payments will be smaller.

Some borrowers lack the funds necessary to make a considerable down payment. In this situation, a smaller down payment is the only means to buy a manufactured home.

Some borrowers favor the use of available cash to pay for closing costs rather than having them included in the loan. By contrast, some borrowers wish to become homeowners with some cash in the bank, and therefore opt for more financing.

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Getting financing for mobile homes from the banks proves to be difficult. Because most of the mobile homes have no lands included, banks will not take the risk of giving loans to such property that is not considered a real estate. Fortunately, for those who love to buy mobile homes there are financing companies who tailored their services in financing mobile home buyers. Mobile home financing companies can help people in financing and would also refinance mobile homes in park.

If you’re planning to seek financing aid from these mobile home financing companies, there are required factors that you must meet before these lenders give you your needed loan. You will find that these criteria are much different to loan criteria for traditional houses.

The first criterion you must meet is the foundation requirement. Almost all of the financing companies for mobile homes required mobile homes to be permanently fixed on the ground. It means that the wheels and axles of your mobile homes should be removed and the home must be tie down securely on the ground. Other criteria require your home to passed HUD standards. Your mobile home should pass the necessary code restrictions for design, construction, durability and strength. Accordingly, it must be a high-fire resistant home, an energy efficient home, can endure transport or mobility and quality building materials are used. Next, your property should maintain that the heating, air conditioning, plumbing and thermal systems are of high standards. It is also required that your home be inspected and passed the criteria of a qualified third party.

The next set of criteria is for you. First, ownership rights required that you solely own the property you will be asking for financing, except if the loan is catered to share ownership like of a cooperative association in-charge of the operation and maintenance of mobile parks. Second, the one you will buy must be your principal residence so that the loan will be rendered to you to purchase your mobile home, but requiring that the mobile home will be placed on your land. If you have no land, there are loans that are tailored for both the mobile home and the lot. If you want to buy a mobile home in a mobile park, it will be noted that you have to extend the least on your home for at least five years after end of the term of the loan.

Third, you should be reminded that a high credit score will give you more chances to find loans from these mobile home financing companies. Furthermore, these companies will give you lower rate of interest than those who have low credit scores. You can seek professional help to a credit counselor that will help you find ways to improve your credit profile.

Other necessary requirements that must not be taken for granted are:

1. You can afford to pay the 5-10% down payment of the purchase price of new homes. A pre-owned home has the same down payment range. Factors that can affect the price of the down are size of the home, type of your loan and especially your credit profile. Loans are available from 15-30 years.

2. You must be employed for 3 years before you apply for a loan.

3. You should have a lower debt ratio. Mobile home financing companies have various benchmarks of required debt ratio that you must meet.

You can find many lending companies in the net. Still, you must evaluate the various available offers and pick the one that offers you the best deal.

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