How to Finance Manufactured Homes in California
A manufactured home is a house whose components are pre-built at a manufacturing facility before being assembled at the home site. Because a manufactured home is purchased separately from the home site, financing rules are somewhat different. "Since the land on which the home sits can be rented or purchased separately from the home itself, the financing process is different from that of a traditional house," says Millie Tucker, a licensed real estate agent from San Bernardino, CA.
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Instructions
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Decide which financing option is right for you. There are loans available for manufactured homes, as there are also financing programs available such as FHA Title I and II. Manufactured home retailers are a good source of information on financing options.
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If you decide to go with a loan, decide what loan is right for you. Loans for manufactured homes come in two varieties: personal property installment loans, conventional fixed loans, and adjustable rate real property mortgages. The former allows the purchaser to buy their manufactured home separately from the land. The two latter loan types allow the purchaser to buy the home and the land together (which is considered a real estate transaction).
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Choose a lender from whom you'll get your loan. Possible lenders include banks, mortgage brokers, credit unions and commercial finance companies. For a list of approved lenders, see the California Manufactured Housing Institute (CMHI) website.
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Fill out and submit all required paperwork and documentation to the lender. These documents often include recent tax returns, check pay stubs, bank statements and employment history. Your lender will give you a complete list of required information.
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Wait for your application to approved. The wait time will vary depending on your financing program and/or lender.
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References
- Photo Credit Camping â€" Mobilhome image by albillottet from Fotolia.com
