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Financing a Manufactured Home

There are basically two types of ways to finance your new manufactured home. They are a Chattel Mortgage or a Land Home Mortgage.

Chattel Mortgages are personal loans and are considered to be personal property. The interest rate is based upon your credit score and down payment. The higher your credit score and down payment the better your interest rate will be. The minimum down payment is 5% with terms up to 23 years. A chattel mortgage is best suited for a buyer who already owns his land and has all improvements in place or placing a home in a manufactured home community.

Land Homes Mortgages are used to purchase your home, land and improvements. If you already own your land but need improvements and a home a Land Home Mortgage may be required. FHA often backs these loans. With a land home package you may incur additions cost such as surveys, title insurance, and foundation which will add to the cost of your home. FHA loans with down payments less than 20% may required mortgage insurance, which adds to your monthly payment. These loans can take up to 90 Days to complete. The interest rate may be lower with longer terms.

Financing your new home can be confusing. The person advising you on your loan is required to be license under the MNLS Requirements. They can advise you on the best type of loan to finance your new manufactured home.