What Are Manufactured Home Loans and Mortgages?
Jul 15, 2009 Real Estate Insurance
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Today, more than ever, people are buying manufactured and mobile homes. You will save money by buying a premade home, since significant time is saved on construction. Even if they’re not going to be moving their mobile home, the previous reasons are why more and more people are buying them.
Now some people may say it’s impossible to take out a loan or mortgage toward a mobile of manufactured home because they depreciate in value over time. And so you may be wondering, is investing in a mobile home a good idea?
The answer to this question depends on how you get the home situated. It is a fact that mobile homes do depreciate over time that may reach a point where it will be impossible to take a loan, mortgage or home equity loan against a the mobile or manufactured home. However, you have to remember that there are some manufactured or mobile homes that do appreciate in value over time.
These would be the sort of manufactured homes which are set on fixed foundations. A manufactured home only depreciates if it is not on a fixed foundation. This simple move of placing a manufactured or mobile home on a fixed foundation will do wonders for the home’s appreciation.
With this you will see your mobile home equity increase after only a few years of on-time mortgage payments.
Home equity in a manufactured home can be drastically different than normal home equity loan programs. Equity on your mobile home is the difference in the value of your mortgage and the appraised price of your home.
As you pay your mortgage on a regular basis, your equity will get larger. Equity is a great financial asset when it comes to getting loans in the future. Although you can normally get a loan for 85% of the equity in your mobile or manufactured home, sometimes you can go all the way and get 100%! That simply means that you have access to almost all of the equity in your mobile or manufactured home.
However, this too will depend on something. And, that something is your credit score. The better your credit score is the bigger funds you will get on your home’s equity. Also, it will depend on the lending policy of the lender you choose.
If you have a mortgage and are going to take out a lone with your home itself as collateral it is best to go for a home equity loan. The forms are simpler and are faster to process than other loans so long as your mortgage payments are up to day and your credit score is good.
These are the things you have to remember when you plan on taking a loan with your manufactured home as collateral.
It’s important than your manufactured home will appreciate in value. As stated earlier, placing your manufactured home on a fixed foundation will substantially increase the value and equity of your home so long as your mortgage payments are on time. That way, when it comes time to take out your home equity lone it’ll be far easier to access funds equal to the equity of your home.
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Tags: financing, home, houses, Lenders, Loans, loans for manufactured homes, manufactured home loan, Manufactured Home Loans, manufactured home mortgage loan, Mobile Homes, mortgages, real estate, Real Estate Insurance, refinancing
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