A manufactured home can present an interesting challenge when it comes to obtaining financing. You see, financing is often based on a number of factors and certain requirements. People searching for loans may all have different situations, and you must decide which loans offer the best deal for your circumstances. Let’s examine the requirements for personal property loans, conventional loans, and FHA loans.
Chattel is a type of personal property loan that can be used to finance a home, but it does not include the land. However, this type of loan may be good for people that already own land. If you intend on placing the home on rental property, this could be an ideal loan. This loan requires a minimum of at least five percent of the home’s value as a down payment. Loan terms for a manufactured home range from a minimum of 15 years to a maximum of 25 years.
The land and home can both be financed together for these types of loans. In addition, if you already own property, you may use it for your down payment.
FHA loans have a requirement of at least three and half percent down with a 30-year term, and they also offer low rates. In addition, both the land and the home can be financed together as one loan.
?The type of loan you choose can vary depending on your current situation. Personal property loans may be right for you if you want to finance a manufactured home without property, but be sure you have a substantial down payment for a better interest rate. On the other hand, conventional and FHA loans cover both the land and the home, which is convenient. If you are having trouble searching for an appropriate loan, feel free to contact our team of licensed loan professionals.