Mobile Home Loans

Manufactured & Mobile Home Loans

Welcome to our comprehensive guide on mobile home loans and manufactured home loans. Whether you're looking to purchase a mobile home or a manufactured home, financing is a crucial aspect of the process. In this article, we'll walk you through the key information you need to know, including the differences between a Chattel loan and a regular mobile home loan.

Section 1: Mobile Homes vs. Manufactured Homes

Before we dive into financing, it's important to understand the distinction between mobile homes and manufactured homes:

• Mobile Homes: These are typically older homes built before the HUD code was established in 1976. They can be moved from one location to another and may not meet the same safety and construction standards as manufactured homes.

• Manufactured Homes: These homes are built after the HUD code was introduced in 1976. They are constructed in a factory and transported to the site, meeting specific safety and quality standards.

Section 2: Mobile Home Loans

Mobile home loans, as the name suggests, are designed to finance the purchase of mobile homes. You can purchase one with as little as 5% down. There are two primary types of mobile home loans:

• Chattel Loan: A Chattel loan is a loan for the purchase of a mobile home where the home itself is in a park or leased land. It is similar to an auto loan in that the mobile home serves as collateral and is considered peronal property. Chattel loans often have higher interest rates and shorter loan terms compared to regular mobile home loans. 

• Land Home: A land home mobile home loan treats the home as real property, similar to a traditional mortgage. These loans are available for both mobile and manufactured homes that meet certain criteria. Mobile or Manufactured Land Home loans are on land not on leased or in a park. 

Section 3: Manufactured Home Loans

For HUD approved manufactured homes, you can also obtain financing options similar to regular mobile home loans:

• FHA Loans: The Federal Housing Administration offers FHA loans for manufactured homes. These loans often have lower down payment requirements and competitive interest rates, making them an attractive option for many buyers.

• Conventional Loans: Some traditional lenders offer conventional loans for manufactured homes, provided the home meets certain standards. These loans typically require a higher down payment but can offer competitive terms.

Section 4: Key Considerations

When seeking financing for your mobile or manufactured home, consider these essential factors:

• Credit Score: Your credit score plays a significant role in loan approval and interest rates. Ensure your credit is in good standing before applying.

• Down Payment: Different loan types have varying down payment requirements. Be prepared to make a down payment that suits your chosen loan type.

• Interest Rates: Rates vary between mobile and manufactured home. At Billcutter we will shop your loan with various lenders. 

• Home Inspection: A thorough inspection is crucial to ensure the mobile or manufactured home meets all safety and construction standards.

• Monthly Payments: Assess your budget and choose a loan that provides monthly payments you can comfortably manage.

Conclusion: Obtaining a mobile home loan or a manufactured home loan is an important step in achieving homeownership. Understanding the differences between Chattel, Land Home and manufactured home loans is essential to make an informed decision. Research your options by consulting with a Loan Officer, and choose the financing that best fits your needs and budget. With the right loan, you can enjoy the comforts of your mobile or manufactured home with peace of mind.

You can contact us at 888-855-1423 or apply online.