Financing mobile homes
Theoretically speaking, mobile homes are included under the category of real estate. Thats why, companies that provide home loans also provide loans on mobile homes. However, fact remains that the requirements and natures of these loans are slightly different than loans given for fixed homes.
It is worth mentioning in this regard that some companies require mobile homes to be fixed to the ground in order to provide loans for them. In theory, this includes removing the wheels, axles and hitches of the homes. These requirements are called foundation requirements. If experts are to be believed, lending companies usually put this requirement in order to secure themselves by creating fixedness for the property. As a matter of fact, an extreme requirement for this is to affix the entire home on a concrete foundation. This is also a normal demand by lending companies.
It is worth noting that mobile home loans are of two types. According to experts, there are loans that are provided for the home itself; and loans that are provided for the home along with the land on which it is erected. As a matter of fact, loans provided for the home itself provide money for the construction, including the costs of all building materials required. Always remember the fact that these loans do not provide for transportation charges and the taxes involved in it.
It is worth mentioning in this regard that loans for the mobile home alone are usually taken by people living in mobile home community parks and other such temporary arrangements. As a matter of fact, these loans are deemed highly dubious by lending companies. In theory, the very fact that mobile homes are movable increases their insecurity about the money lent. Most of the banks and lending organizations have at the moment completely stopped writing loans for mobile homes without land.
According to some experts, it is comparatively easier to get a loan for a mobile home with the land on which it is installed. Furthermore, these loan amounts are higher, because they also provide for the price of the land. Again, always remember the fact that these loans do not provide for the taxes that may go along with the land.
It is worth mentioning in this regard that whatever be the kind of loan, none of them are disbursed if the mobile home fails to meet the HUD code of construction. Similarly, it is very hard to obtain a mobile home loan if the borrower has a bad credit rating. Theoretically speaking, financial organizations normally provide 75 to 90 percent of the total cost of building the house. Fact remains that mobile home mortgages are usually long-term mortgages for periods generally above 10 years.
There is no denying the fact that the chasm between mobile homes and traditional bricks and mortar homes is narrowing day by day. As a matter of fact, new mobile homes can be as trendy as they come, complete with all the amenities both necessary and luxurious. On the other hand, in contemporary mobile homes, you can even attach a sauna, a bath or a Jacuzzi without much of a problem.
Thats why, there is no surprise that the days of derision towards mobile homes and their owners are coming to an end. According to experts, there are about 10 million Americans today who are living in mobile homes, individually and in parks.; or they may be people who are busy accruing money for a more stable home in future. Moreover, people of almost all groups are now accepting mobile homes.
Blame it to all this, even the designing of mobile homes has undergone a sea change. Furthermore, gone are the days when mobile homes spelt shoddy, uninteresting designs and sharp walls. At the moment, there are a wide array of finishes such as tiles, veneers, wallpapers, distempers and even bricks, as in traditional homes. Mobile homes at the moment can be affixed to permanent foundations, so that there would be no difference, seemingly, between a mobile home and any other home.
It is worth mentioning in this regard that not just the structure and design, but also the nomenclature of mobile homes has undergone a change. Thats why; mobile homes are now called manufactured homes. As a matter of fact, most of their parts are constructed in factories and then shipped to the sites of location. And thats where they are bolted and fastened together. If experts are to be believed, modern technology has enabled manufactured homes to be better affixed, thus eliminating the possibilities of leaks and seepages through their joints.
At the present moment, mobile homes are economical and quick solutions for people yearning for a home. Theoretically speaking, with the surfeit of bank financing available on mobile homes, more and more people can afford them. It is worth mentioning in this regard that mobile home loans are a form of home loans widely found these days. As is pretty much evident with the name this loan is for mobile homes that can be moved from one place to another.
According to experts, there are two types of mobile home loans available, loans to buy a mobile home with the land and loans to buy a mobile home without the land. On the other hand, when the land does not come into consideration, the finance institutions give a loan for mobile homes in parks, leased lots, family land, or any situation where the home is not deeded as real property. As a matter of fact, this sometimes includes people who buy manufactured houses and place it on their land until they build another home later. In theory, such loans are considered to be high-risk and many leading institutions have quit writing them completely. On the other hand, with the loans of mobile homes with land, the land is naturally taken into consideration for the amount of the loan.
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