Mobile, prefabricated and modular homes have multiple financing options available. From USDA mortgages to conventional loans, there are many ways to get the funding you need to purchase a mobile, prefabricated or modular home. Understanding the different types of loans available and the requirements for each can help you make an informed decision when it comes to financing your new home. Types of mobile homes vary greatly, from traditional manufactured homes to prefabricated and modular homes.
Manufactured homes are built in a factory and then transported to their final destination. Prefabricated homes are built in sections in a factory and then assembled on-site. Modular homes are similar to prefabricated homes, but they are built to local building codes and can be customized more easily. Statistics on prefabricated housing show that it is becoming increasingly popular in the United States.
According to the U. S. Census Bureau, there were more than 8 million manufactured homes in the United States in 2018, and that number is expected to grow as more people look for affordable housing options. ManufacturedHomeLoan offers a variety of personal property (movable property) financing options for prefab and mobile homes.
A loan secured through the USDA is one of the most popular funding options in California, and there are many reasons for that. USDA mortgages can include up to 100 percent of the appraised value of the property (or slightly more), and no down payment is needed. ELEND provides funding for prefabricated, modular and mobile homes through several government insured programs, such as the FHA, VA and USDA. A USDA mortgage is offered at a 30-year fixed rate, and these loans can often include closing costs and other legal fees.
Community West Bank has more than 2,000 loans for manufactured homes in more than 300 California mobile home parks. In several states, they can help with the down payment for a mobile home or the land where it will be placed. However, if you have a manufactured home that meets some very specific criteria, conventional mortgage sources Freddie Mac and Fannie Mae offer specialized loans. For now, let's discuss some ways you can prepare to qualify for a loan to pay for a manufactured or mobile home. Once you've decided on the type of loan, it's important to research the advantages and disadvantages of each lender you consider when looking for a mobile home loan.
Some lenders, such as SoFi and LightStream, offer loans adapted to smaller homes if you're thinking of buying a small home or mobile home. Manufactured homes are not always eligible for a conventional mortgage because the prospective owner does not own the land on which they are located. Since most lenders don't consider manufactured or mobile homes to be real estate, there are many requirements and stipulations you'll need to meet if you want to qualify for a mortgage. Prefabricated, modular and mobile homes offer California residents a great way to live affordably and comfortably now more than ever. If you want to buy a mobile, prefab, or modular home, you can get a mortgage to pay for it; if you meet the basic requirements, mortgages are available for many types of non-traditional homes.