Buying or building a new home for you and your family to live in is actually a major investment, which often requires a large down payment and long-term expensive loans. However, if you are on a low budget, then building or buying manufactured homes is an excellent and attractive option.
Most manufactured homes offer more comfort and flexibility than conventional site-built homes and they are also sustainable and eco-friendly. In addition to that, the price difference between a conventional site-built home and a manufactured home is substantial. As per the US Census Bureau, the average price of a new site-built home is $69,800, whereas the average cost of a new manufactured home is estimated to be around $360,000.
If you are proceeding with the plan of buying or building a new manufactured home, then you will certainly need to know about the financial options that are available for these types of homes. Below are some of the best financing options that will help you to cover the building or buying cost of a manufactured home.
Getting a conventional loan for manufactured homes is a bit difficult task, but it is not impossible. Many banks and lending institutions in the country do offer conventional loans for manufactured homes, although the downside is that you will have to meet all the requirements set by them. However, if your manufactured home is located on your own property, then the chances of acquiring a conventional loan are higher.
If your manufactured home is located on your property, then it will be considered as “real property” by the banks and other lending institutions. On the other hand, manufactured homes that are not installed on the property of the owner are classified to be as “personal property.” This means that if the manufactured home is within your property, then you will be able to easily acquire chattel mortgage loans.
The FHA is actually in the business of insuring loans and they persuade the lending institutions to loan money to homeowners. This implies that if you stop making the payments to the lender and ends up defaulting on the FHA loan, then the agency will be forced to make the payment to the lending institutions on their own. It would be better if you consult with your friends or relatives who own manufactured homes, as it will give you a better idea on which type of loan would be the best choice for you.