Trailer
homes are the new trend today due to the market crash of 2008 and they are no
longer called trailer homes. The new term for such mode of living is
manufactured homes. These are housing for people who were affected by home
foreclosures during the market crash and almost 19 million people are currently
living on manufactured homes. This mode of living is considered much cheaper as
there are no mortgages to pay and expenses to maintain this kind of living
space is minimal. But for other people, trailer homes can also be used as rest
and recreation vehicles as this could be brought to any places when having a
vacation. But how could one avail such kind of living space if the financial
capabilities are quite limited? Financial firms now have this loan package
called mobile home loans.
Mobile
home loans are like other loans that are usually availed when one wants to
acquire a manufactured home. It is much like a car loan or a boat loan but it
is specifically used to acquire trailer homes. There are two ways on how to use
this loan. The first one is used to finance a manufactured home, just like a
normal home loan or mortgage. This loan can be used to upgrade to a better
trailer home or to finance the maintenance of a manufactured home. The other
method is used when wants to acquire a manufactured home that can be used for
recreational activities such as camping or vacation. A financial firm finances
the purchase of the manufactured home and the buyer repays the amount borrowed.
Living in
a manufactured home may look enticing for people who are living in a limited
budget but it should be noted that this kind of loan may carry a high interest
rate, much like a car loan due to the fact that the borrower may not be able to
provide enough security to the lender for the loan that he or she is availing.
The amount of this kind of loan may range from $23,000 to $94,000, depending on
the purpose of the loan. The repayment period also ranges from 15 years to 25
years, depending also on the usage of the loan. Moreover, most lending firms
would require a down payment ranging from 3.5% to 20% of the total loan amount.
Lastly, most lending firms would require the borrower to have a good credit
rating. If not, there are also lending firms who offer this loan to persons who
have a bad credit rating in the past.
Given the
current trends on the housing market today, more and more people are being
enticed to live in manufactured homes due to their low maintenance and mobility
factors. This can be possible as most financial firms are now offering this
kind of home loans for people who want to have homes that are within their
budget.
In
retrospect, these are the following points one should remember about trailer
home loans:
· Mobile
home loans are loans designed for individuals who want to live in a trailer
homes or manufactured homes. These loans are also designed for individuals who
want to purchase a trailer home for recreational purposes.
· It may
carry a high interest rate due to limited collateral that could be presented by
a borrower.
·
Different loan packages are available and the amount that could be borrowed
ranges from $23,000 to $94,000 and can be repaid in 15 to 20 years.
·
Financial firms who offer such loans would require a down payment and also a
good credit rating although there are also lending firms that offer this loan
to individuals who have bad credit ratings in the past.
Article Source: http://EzineArticles.com/6712374
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