Whether you’re looking for manufactured home financing in Delaware or anywhere across the United States, financing a manufactured home requires a slightly different approach than financing a site-built home. It is surprising how many options are available for the purchase of a manufactured home. The most common financing is arranged through the retailer from whom you purchase the home. However, potential home buyers can choose to work with any lending institution to secure a loan for a manufactured home purchase. Finance your manufactured home with us.
Personal property loans
Manufactured homes are usually financed as personal rather than real property. This occurs when the home is being sold separately from the land. Manufactured housing lenders also provide programs for the home buyer who will secure the purchase of their home with land, often called land-home financing.
Personal property loans typically have a higher interest rate (usually 2 to 3 percent) than a real estate mortgage loan. These higher rates reflect the manufactured home lender’s higher cost of providing these loans compared to the mortgage lender’s cost of providing real estate loans. Making a higher down payment or offering land as collateral for the loan may help to secure a lower interest rate, depending on the loan programs which vary by lending institution.
Financing Made Easy
Conventional wisdom once said that manufactured homes were more difficult to finance. In reality, when these homes are manufactured according to the HUD Code and located on permanent foundations, they can be financed with real estate-type 30-year mortgages, as well as chattel mortgages for homes located in land-lease community settings.
The high quality construction standards of today’s manufactured homes have opened up new financing options to potential homebuyers. Traditional lenders have increasingly recognized the quality construction standards of manufactured homes and are offering mortgage financing to manufactured homebuyers.
Manufactured homes are factory built to stringent specifications and buyers seeking financing are likely to find that many bankers are familiar with the home and understand its value. Some mortgage lenders will offer a lower interest rate for manufactured homes that have energy saving features.
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