How do I Purchase & Finance a Mobile Home?
A mobile home, or manufactured home, offers a number of advantages to a consumer. The process of purchasing a mobile home can be very quick, allowing a consumer to be in a home in a matter of weeks or less. Mobile homes are also significantly less expensive than traditional homes. However, buyers must carefully consider the purchase of a mobile home to make certain the home will meet their needs and budget.
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New Versus Used
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Buyers of new mobile homes can have the manufacturer customize the home to the buyer's specific needs of wants. New mobile homes also sell with a warranty against defects and other problems. However, used mobile homes have advantages for buyers to consider as well. Problems with a mobile home often show up in the first few years of ownership. When buying a used mobile home, problems with the home will be easier to find or will have been repaired by the previous home owner. Used mobile homes are also significantly less expensive than new homes.
Choosing a Home
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Mobile home standards for design and materials are higher than those of the past. However buyers still need to consider the construction when buying a mobile home. For example, better quality homes will use 2-by-6-inch wall joists, plywood floors, and shingles roofs. Lower quality homes will use 2-by-4-inch wall joists, particleboard floors, and metal roofs. When shopping for a new home, buyers should visit various dealers to see the variety of models available and to find the best deal.
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Home Location
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The location of the mobile home will play a key role in financing the home. Homes placed on a permanent foundation are easier to finance and more likely to be financed with a traditional mortgage. Foundations such as metal stands do not support the home as securely, which can allow it to settle or move off the stands during severe weather, causing damage. Homes placed on rented lots will be more difficult to finance as well. Mobile homes on permanent foundations and located on owned lots are also less likely to depreciate in value over time.
Financing
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There are two basic types of financing for mobile homes: traditional mortgage loans and personal property loans. Traditional mortgage loans offered by banks and credit unions typically provide the best terms for borrowers. Loans backed by the Federal Housing Administration (FHA) and Veterans Administration (VA) are available as well. Banks, credit unions and finance companies also offer personal property loans for mobile homes. Personal property loans are often of a shorter duration than a typical mortgage loan and have higher interest rates.
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References
- Photo Credit Camping â€" Mobilhome image by albillottet from Fotolia.com
