Two Bedrooms - Loft Cabin Floor Plan

Two Bedrooms - Loft Cabin Floor Plan

Financing Your Mobile Homes

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

1 Bedroom Cabin Plan

1 Bedroom Cabin Plan

Financing a Manufactured Home

There are many things to consider when financing a manufactured home. This is particularly true for the first time home buyer. Mortgage terms, interest rates, closing costs, originator fees, the down payment, insurance, and other issues that must be thought through in order to make informed decisions.

Buying a home is the most expensive financial undertaking most people will make in their life. It only makes sense that it should be approached carefully before making a final decision.

Two of the more important things to consider when applying for a manufactured home loan are the loan terms and interest rate. These two aspects of any loan will determine how much you will pay, not only monthly but also over the life of the loan.

One thing to keep in mind is that interest rates are moving up and down everyday in conjunction with market rates. This makes locking in the lowest interest rate something of a guessing game, but since the market follows trends it's rather easy to see which way interest rates are trending. If they are trending up then it's a good idea to lock in; if they are trending down it can literally pay to wait until they start to go up again before locking in.

The next decision to make when financing a manufactured home is deciding what type of loan works best for your situation: A fixed rate mortgage or an adjustable rate mortgage (ARM).

For the majority of people a fixed rate mortgage is the way to go. Once the interest rate is locked in it will remain the same for the life of the loan. This means the monthly payment will always be the same making the house payment easier on the monthly budget. About the only drawback of a fixed rate when compared to an ARM is the initial interest rate at closing, with a fixed rate mortgage being slightly higher.

The ARM, or adjustable rate mortgage, has the singular advantage of having a lower initial interest rate. This can mean a lower monthly payment through the first term of the loan but since it is an adjustable rate that can change once the term is up. If interest rates go up so will the monthly payment, much to the surprise of the homeowner. About the only time an ARM makes sense is if you don't plan on being in the home for very long, other wise stick with a fixed rate loan for the financial piece of mind it brings.

Deciding on the term, or length in years, of the loan is another important consideration. For fixed rate mortgages the two most common are 15 and 30 year terms. Many lending institutions also offer 20 and 40 year fixed rate loans.

Adjustable rate terms offer an initial fixed rate of 3,5,7 or 10 years. Once the first term is up the interest rate will adjust to whatever the current market rate is at. Depending on the terms of the loan the interest will continue to adjust at set periods of time as was agreed upon in the loan terms.

Another factor that will help determine your monthly payment and in some cases the interest rate is the size of the down payment. Most lenders want a down payment of at least 20% of the total value of the home being bought. This allows the new homeowner the opportunity to get into a home with a certain amount of equity already there and avoids the mortgage insurance for all loans that don't meet the 20% requirement.

This doesn't mean that you have to have a 20% down payment as many lenders will help prospective homeowners get a loan with a smaller down payment, but there can be additional fees, a higher interest rate, and the aforementioned mortgage insurance that will raise the monthly payment.

When you are getting ready to sign the final contracts be sure to read through everything carefully. There could be clauses, stipulations, and hidden fees that weren't considered during the review process before closing. There are two clauses that you need to wary of; a balloon payment at the end of the term and any "pre-payment penalties" that may occur if the mortgage is paid off early.

Financing a manufactured home is much the same as financing a conventionally built home. The same considerations need to be made during the loan process to ensure that the mortgage fits your financial needs.


Article Source: http://EzineArticles.com/6218929

What Is a Manufactured Home ?

Factory Built Housing Definitions

Many types of structures are built in the factory and designed for long-term residential use. In the case of manufactured and modular homes, units are built in a factory, transported to the site and installed. In panelized and pre-cut homes, essentially flat sub assemblies (factory-built panels or factory-cut building materials) are transported to the site and assembled. The different types of factory-built housing can be summarized as follows:

Manufactured Homes:

These are homes built entirely in the factory, transported to the site, and installed under a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). The Federal Manufactured Home Construction and Safety Standards (commonly known as the HUD Code) went into effect June 15, 1976. The federal standards regulate manufactured housing design and construction, strength and durability, transportability, fire resistance, energy efficiency and quality. The HUD Code also sets performance standards for the heating, plumbing, air conditioning, thermal and electrical systems. It is the only federally-regulated national building code. On-site additions, such as garages, decks and porches, often add to the attractiveness of manufactured homes and must be built to local, state or regional building codes.

Modular Homes:

These factory-build homes are built to the state, local or regional code where the home will be located. Modules are transported to the site and installed.

Panelized Homes:

These are factory-built homes in which panels-a whole wall with windows, doors, wiring and outside siding-are transported to the site and assembled. The homes must meet state or local building codes where they are sited.

Pre-Cut Homes:

This is the name for factory-built housing in which building materials are factory-cut to design specifications, transported to the site and assembled. Pre-cut homes include kit, log and dome homes. These homes must meet local, state or regional building codes.

Mobile Homes:

This is the term used for manufactured homes produced prior to June 15, 1976, when the HUD Code went into effect.

Park Models/RV's:

This class of factory built living quarters are not Manufactured Homes under our definitions. These homes are not built to the HUD code or local building codes. They are not eligible for conventional or FHA/VA loans whether they are on their own lot or not.


Article Source: 

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.


Article Source: http://EzineArticles.com/3079159