One of the easiest ways for individuals to purchase a home is to find a mobile home, also called manufactured home. These homes are pre-made in a factory, and it’s easy to transport them to wherever the owner would like to set them up as their new home. Typically, construction regulations make mobile homes dramatically less expensive than buying or building a home from scratch. However, before making the decision to go this route, there are some important facts about mobile home mortgage that buyers should consider.
Most of the time, if you purchase a mobile home, there’s little chance that the home itself will be considered sufficient collateral for the loan. This is because manufactured homes depreciate in value in much the same manner that automobiles depreciate. After a period of 5 to 10 years, the value of the home is nearly zero under normal conditions.
Therefore, the inclusion of a minimum of one acre of land with the mobile home is usually required as collateral. Once the home is tied to the land, its value stops depreciating and it becomes as valuable as any similarly constructed home.
And the upside is that finding lenders for mobile home mortgages is not as hard as it is to find traditional home mortgage lenders! This is due to the fact that most mobile home manufacturers often work with their own lenders to expedite sales. These lenders are often willing to work with individuals with less that perfect credit as long as their credit score is not at the bottom of the scale.
One of the main requirements for most mobile home mortgage loans is the axles and wheels be taken away when the home is set on site, and that it be attached to the ground in such a way that it ends up making it one complete unit. In this manner, lenders make it more difficult for homeowners to decide to move the home from the location chosen and make it less likely that they will default on the loan because they lose not only the mobile home, but the land it sits on as well.
The good news concerning mobile home mortgage loans is that they are usually negotiated for thirty year terms, much like a traditional mortgage. Since mobile homes are typically cheaper than foundation homes with the same square footage and a comparable floor plan, mobile home monthly payments are drastically cheaper than other home mortgage payments.
It’s also important to realize that the construction of mobile homes has vastly improved in the last few years. Energy efficiency is one of the biggest selling points that companies advertise when offering mobile homes for sale. In most cases, the newer mobile homes are much more energy efficient to start with than in comparable foundations homes, unless the builder has made extra efforts to make his homes efficient.
The lower energy bills that will result are taken into consideration when deciding whether or not a person can obtain a mobile home mortgage. Since decreased energy bills usually make it easier to make payments on time, this usually works out in favor of the client.
Arnold is an avid blogger that loves to blog about subjects like buy to let remortgages advice and buy to let remortgages advice on her site.
categories: mobile home mortgage,mobile home,mobile home mortgage refinance,mortgage,home loan,finance
