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Financing a Manufactured Home

Purchasing a manufactured home is quickly becoming the way that many people achieve the American Dream. More than 19 million people in the United States live in manufactured homes. Many are now built to resemble traditional neighborhood homes to the extent that they can be hard to tell apart. If you’re considering purchasing a manufactured home, here are some things to consider about financing it.

The fact that the home may or may not be mobile could affect a financing deal. In the past, manufactured homes have been viewed as personal property, and were financed as such. Personal loans required a ten percent down payment with the remainder financed over 10-15 years. Now, they only require five percent down and the remainder financed over 20-30 years. The loan may be considered a mortgage if the manufactured home owner also owns the property. If this is the case, vital tax benefits may be available to you.

Manufactured homes tend to have a higher interest rate, as well. Lenders usually require a higher interest rate when a customer has fewer resources to repay the loan. Manufactured home owners are likely to be on a smaller budget.  Lenders also have less collateral in a manufactured home deal because the homes tend to have a shorter life span than traditional homes.

Buyers who closely resemble conventional homeowners represent less than one in six buyers. For these buyers, factors such as interest rates, down payments and fee requirements, the lender’s policy, condition of the home, and their credit may be inconsistent. Although manufactured homes can only be installed without their wheels, many states consider them somewhat “mobile.” Some buyers are required to pay an annual vehicle license fee because of this.

Many lenders provide a variety of manufactured home financing plans including fixed and variable-rate loans. Many people view manufactured homes as a gateway into homeownership, but the industry is still quite concentrated with only two major lenders. Since there are only two major companies, buyers do not always have leverage to negotiate financing options like traditional home buyers. A great bargaining option for regular mortgage is a good credit rating.

Financing a manufactured home can be a complicated and stressful process. As long as you keep yourself educated and pay attention to details, you should have the resources to purchase your dream home. Taking the time to follow this advice will help mobile home owners have a successful transition to Roberts Communities, a new place to call home. Visit us today at

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