FHA Loans for Manufactured Homes

In these times of crisis, people need as much hope and help that they can get when it comes to their monthly bills. This is especially true for those families that need a home mortgage. Thus, they go to the Federal Housing Administration for help in their loan needs. This is especially the case for those borrowers who will be getting a loan for the very first time in their lives. There are various types of FHA loans that a borrower can avail. It all depends on the different circumstances that surround the borrower's financial situation. For those people who need to buy a prefabricated or manufactured homes, there are few good loan deals out there in the conventional lenders market. However, it is offering one of the perfect packages for this situation: the Manufactured Home Loan.

Right now, the down payment required by the FHA is 3.5 percent of the amount the house was bought in. On home loans on the other hand, the rate goes up to 21 percent and above.

One can have more luck finding a needle in a haystack than in trying to find conventional lenders who offer good deals or any deal at all for getting a loan on a manufactured home. This is because it is very easier to disassemble the house, which is why it's also sometimes called a mobile home in the past. The home that can be moved means that the borrower might be able to escape to another place. This is a liability for any lender or bank.

For those first time home buyers that need to get a manufactured or prefabricated house, low monthly mortgage payments is most likely a top priority since saving money is the focus here. And indeed, prefabricated houses are a lot cheaper than the usual house obviously. Applying for an FHA manufactured home loan is a great way to deal with this situation.

One will not need to have a spotless credit history or a perfectly high credit score in order to be accepted for FHA loans. This is the best part of the deal. Chances are, those needing a prefabricated home will not have the most perfect looking credit and conventional lenders will most likely decline them or give them high interest rates. Since the economy crashed, foreclosures have been going on everywhere. Manufactured homes are not safe from this flood of foreclosures.

Since the Authority was specifically founded to help people with bad credit and low income ranges, they do not put their primary focus on the credit score of the person borrowing money. Also, these packages have a significantly lower rate than most conventional loans available in the market.

With such low down payment and also such lenient requirements for qualification, the FHA loans may not just simply be the best option for you but it might also be the only option available for you since others have such high credit requirements.


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