Bluestar Mortgage of Schaumburg, is the trusted choice for Mobile Home Loans. Give us a call at 847-230-4030 to speak with a Mobile home loan expert who can assist you in determining if a Mobile Home loan is the right option for you. You can also click on the schedule a free consultation button above. One of the best alternatives that cost less than a traditional home is a manufactured home or the mobile home.
Below are the few choices and requirements for those seeking mobile home loans or a manufactured housing loan.
1. Conventional Loans
A conventional loan is a type of loan that the government does not protect. Instead, the support comes from private creditors like Freddie Mac and Fannie Mae, an excellent source since they give specialized loans once your home meets specific standards. The majority of the lenders will not provide a conventional loan for mobile home loans or a manufactured housing loan since they do not regard these constructions as real property.
2. Fannie Mae
Some lenders may offer the MH advantage program of Fannie Mae since not all lenders fund manufactured homes. The program grants the buyer finance manufactured homes over 30 years with as low as a 3% down payment. But to be eligible, your home must meet stricter property requirements, such among others, the manufactured home must be at least 12 feet wide and have a minimum of 600 square feet of gross living area, and must not be located on lease land.
3. Freddie Mac
Freddie Mac likewise gives conventional loans for manufactured homes, provided that all Freddie Mac’s eligibility requirements are fulfilled. Like Fannie Mae, the list of eligibility requirements is much the same such as the home must have at least 400 square feet of living space, be considered real property, and be built on a permanent chassis.
Remember, not all lenders will fund mobile home loans or a manufactured housing loan, but Fannie Mae and Freddie Mac both provide loan preferences for eligible properties.
4. FHA Loans
The Federal Housing Administration protects FHA loans, which provide home loans with lower credit scores, debt-to-income ratio, down payment requirements, and fixed-interest rates, a popular option for first-time home buyers. Likewise, they give a manufactured housing loan called Title 1 and Title II loans.
Title I loans are likely to have short terms, usually up to 20 years, with a reasonable loan limit. It can be utilized to buy manufactured homes except for the land on which they sit. But it has to conform with the guidelines of FHA prior to putting it on a rental site like the property must be your principal home, must be connected to utilities, etc.
Unlike Title 1 loans, Title II loans can be utilized to acquire a manufactured home jointly and the land it sits on. But in Title II loans, mobile homes or on leased land are not eligible since it is necessary that the funded home was constructed after 1976 and that a manufactured home must be considered real property.
5. VA Loans
VA loan is only available to and is a benefit of military service and active-duty service members through the Department of Veteran’s Affairs and their surviving spouses. VA loans do not entail a down payment and do not require mortgage insurance payment. To avail yourself of a manufactured home under the VA loan, your house should be on a permanent foundation, meet HUD guidelines, and be acquired with the land underneath it, while mobile homes do not qualify for this.
6. Chattel Loans
Compared to other traditional loans, chattel loans are commonly used to fund movable property like a vehicle or machinery. It is usually used to funds for mobile home loans or a manufacture housing loan and even modular homes. Chattel loans also have shorter terms and lower loan limits. However, do keep in mind that your property is likewise collateral for the loan, which means once you default on your loan payment, your home will be seized to compensate the due amount.
7. Personal Loans
If everything will not work out, there is a financing option for your mobile home loan or manufactured housing loan, which is a personal loan. You are likely to qualify for a personal loan regardless of whether you have a movable mobile home and are not fixed to permanent land since it does not have similar limitations as to how your home is constructed. A few lenders will provide borrowers with a personal loan that amounts to $100,000, which can be beyond the funds needed for a manufactured home.
But remember, this choice may cost you if you have bad credit because personal loans can have higher interest rates (north of 20%, in some cases).
If you are interested in a Mobile Home loan, call us at: 847-230-4030 to speak with a FHA loan expert who can assist you in determining if a Mobile Home loan is the right option for you.