Are you in the market for a manufactured home loan? Here’s what you must know!
Interested in buying a home at a low cost? Manufactured homes are the best option you have. It is a type of home that is pre-built and then placed on a particular property. The average cost of mobile or manufactured homes ranges from $54,300 to $120,300. If you look at the cost of traditional houses, the manufactured homes cost less. However, you do not need to buy a manufactured home out of pocket – you can apply for loan programs. A manufactured home loan Texas can ease the home-buying process.
Several financing options are available for manufactured homes now. But how do you qualify for the mortgage program? You need to determine a budget, check credit score, and lower the DTI ratio. As a manufactured home loan borrower, you have to sit down with the community first. This is one thing that traditional buyers do not have to go through. You can get in touch with a consultant who will help you purchase the home.
So, which financing option is best suitable for you? Let’s go over the options you have!
FHA Loan for Manufactured Homes
If you want to buy or refinance a mobile home, FHA Title 1 loan is a great choice. The Federal Housing Administration insures the lenders so that there is no stress in case the borrower defaults on the loan. With FHA Title 1 loans, you can borrow up to $92,904. With the loan amount, you can finance the lot and manufactured home. The maximum loan amount will go down if you want to get financing for the lot or home. Based on the loan size, repayment terms are around 15-25 years.
Freddie Mac for Manufactured Homes
Do you want to finance a land along with a mobile land? Freddie Mac mortgages are great for refinancing manufactured homes. The loans provide financial cover up to 97% of a mobile home’s loan-to-value ratio. In addition to the context, the terms typically range between 15 and 30 years. Contradicting to FHA loans, Freddie Mac loan programs can be used for purchasing and refinancing a secondary or primary residence. Loan maximums and terms vary in case you are looking forward to financing a secondary residence.
In essence, a manufactured home loan finances a manufactured home and land together. So, let’s get started with the loan application as early as possible!