Today, young people are attracted to the concept of modular houses and manufactured homes. You cannot blame them as manufactured homes are much easier to buy, easily customizable, and are low maintenance. Despite this, purchasing a new or even a used manufactured home is not an easy task. Financing manufactured homes are different from financing regular houses.
Are you curious to know more about building or buying a manufactured home? If yes, then continue reading to learn about four crucial things that you must know before you go ahead and buy your first manufactured home.
How much does it cost to buy a manufactured home?
- One of the main reasons why many people are opting for a manufactured home is its low cost as compared to traditional houses.
- Initially, manufactured home loans worked more like car loans rather than mortgages. However, the scenario is much better today.
- It will cost you somewhere between $15,000 to over $100,000 to buy a new manufactured home.
- Keep in mind that the cost of the house is not the total expense as you will end up spending more in the form of land costs, shipping costs, insurance, property tax, utilities, water bills, and other maintenance costs.
What are FHA loans?
- FHA loans are excellent if you wish to buy a manufactured home, especially if you do not have enough money for a down payment nor do you have an excellent credit score.
- The FHA loan program makes it possible for you to buy a manufactured home even if you have a higher debt to income ratio and typically won’t be eligible for getting a home loan.
- If you wish to purchase a manufactured home with the help of an FHA loan, then the house that you are planning to buy must be built after 15th of June 1976 and should have a fixed foundation.
- Low down payment of 3.5% and low-interest rates make FHA loans one of the best options for a manufactured home loan.
What are VA loans?
- VA loans are another type of manufactured home loan that a few firms offer to veterans, service members and in some cases military spouses, who are considering to buy a manufactured home.
- Typically, private lenders offer VA loans to veterans who have a high credit score, generally of 620 or higher.
- Created in 1944 by the government, the main motto of this manufactured home loan was to ensure that the returning soldiers could buy houses for themselves and their family without having to worry about down payments.
- Today, VA loans are a great type of manufactured home loans for active military members as the interest rates of personal loans are too high, making it difficult to buy a manufactured house.
What are the advantages of VA loans?
- The best thing about this manufactured home loan is that it is a $0 down payment mortgage, which means that you don’t need to pay any money while you buy the house.
- The low-interest rate, no down payment, no private monthly mortgage insurances and the fact that it is a government-backed loan are some of the reasons that make VA loans one of the best manufactured home loans.
- Besides these, the no prepayment penalty feature of this loan makes it possible for you to pay off the loan early without any worries.
- This helps you save some money that would otherwise go as interest in case of other loans, where you need to wait to make the full payment till your home loan matures.
Whichever loan you choose for your manufactured home, make sure that you are aware of all the terms and conditions before you seal the deal. Buying a manufactured home might not seem like a big commitment, but it is still a significant financial decision, so do not take any decision in a hurry.
Tag: manufactured home loans