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When you think of mobile homes, you probably remember the tin can style on wheels with a trailer skirt. Times have changed, and today mobile homes are known as manufactured homes. The homes nowadays are far from a trailer. They don’t have wheels, they usually sit on a foundation or slab, and they look almost like a built from scratch home.
In fact, the way a manufactured home is placed on a site determines the way a lender looks at your home loan. Some states consider manufactured homes personal property. Those loans usually require a 10% down payment, live 10-15 years, and usually have higher interest rates such as 11-14%.
Mortgage or not, the interest is usually tax deductible. “Previously referred to as "box kites," "ovens" and "freezers," the manufactured housing business is in the middle of a growth spurt,” shows Bankrate.Com. “Blossoming into a $14 billion industry that builds nearly one in three new homes bought in the United States. “
Some states such as California consider a manufactured home real property, and in those states, homeowners secure 30-year fixed rate mortgages very similar to traditional construction mortgages with fixed rate loans at 7.5% interest.
The interest rate is what manufactured homeowners should keep in mind. Expect to pay more for your loan when dealing with manufactured homes. Lenders usually have less collateral due to the nature of the home, and therefore charge higher interest. Also, the closing costs and administrative fees are usually included in the higher interest rate.
So what about equity in a manufactured home. If you own the property, the land will build equity simply as property values increase. But, even if you rent the property. A manufactured home with a shorter loan term, even at a higher interest will build equity faster. A shorter term loan means you are paying more principal with each payment.
Lenders such as Fannie Mae and Freddie Mac are jumping in the manufactured home loan game. If your manufactured home has a traditional 30-year fixed rate mortgage, consider there’s no difference if you wanna refinance or open a home equity line of credit.
California considers manufactured home real property and assess as such.
Key words: manufactured home loans, manufactured home financing, manufactured home mortgages, difficulty financing manufactured homes, higher interest rates, can be more difficult to refinance, find the right manufactured home lender.
You can read more of Nick’s articles about home mortgages and refinancing online. To get specific terms and interest rates, please visit the Mobile Home Mortgage Loans. If you need more lending advice about sub-prime refinance loans with, take a look at Bad Credit Manufactured Home Loans. Please visit these helpful resource For the latest debt consolidation solutions, please visit the Mobile Home Refinance.
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