Financing Your Mobile Home
There Are More Options Than You Think
OKEMOS, MI -- (MARKET WIRE) -- July 12, 2006 --
Financing your manufactured or modular home isn't as difficult as you might think. You may be surprised to see the variety of loan options available. Your retailer can help arrange financing for your new home, or if you prefer, you may contact a lender of your choice. Whether you are purchasing a new or pre-owned home, there is a financing option that's right for you. Similar to the purchase of a site-built home, terms for the loan will vary. Most lenders require a minimum down payment of five to 10 percent and terms range from 15 to 30 years. Terms may vary by lender.
If you are purchasing your home separate from land, then you are eligible for a personal property loan. The home itself is used as collateral for the loan. To qualify, the borrower must meet the lender's underwriting requirements. This is popular when a mobile home is placed in a land-lease community.
If you are purchasing your home and land together as a single real estate transaction, then a real estate mortgage loan is right for you. In some cases, you may finance your mobile home and land with a lender who offers traditional mortgage financing. Fannie Mae and Freddie Mac, the primary and secondary market sources for mortgage loans in the U.S., encourage this trend through their guidelines for accepting real estate mortgage loans secured by mobile homes.
These are just a few of the loan options available for manufactured and modular homebuyers. Your retailer or lender will discuss all the options and help you decide which loan is best for you. To find a lender, visit www.michhome.org, click "Search our members" then click "Lenders." To narrow the results, select a county from the drop down menu or enter a zip code.
The Michigan Manufactured Housing Association is celebrating its 65th anniversary, making it one of Michigan's oldest trade associations. For more information about manufactured and modular housing, visit www.michhome.org, call 800.551.1315 or contact MMHA, 2222 Association Drive, Okemos, MI 48864-5978; 517.349.3300.
