Manufactured homes can be financed with either chattel or mortgage loans. Also referred to as personal property loans, chattel loans make possible the purchase of manufactured homes that will be placed on land home buyers own outright or are still paying for, or on rental sites within manufactured home communities. Conventional mortgages, on the other hand, allow purchasers to buy a manufactured home along with the land to which it is affixed, and roll everything together into a manufactured home loan with land in order to benefit from better terms and conditions.
If you’ve already decided to apply for such a loan, below are three helpful tips you should consider before filling out your application.
Tip #1: Buy the lot and title your home as real property.
Manufactured home loans with land come with a series of benefits, including longer repayment terms and lower interest rates, which typically translate into lower monthly mortgage payments.
According to CFED, if you intend to permanently attach your manufactured home to a HUD-approved foundation and title it as real property, you’ll enjoy the same advantages as the owners of conventional site-built homes. Some benefits include, without being limited to:
- greater availability of financing and refinancing options from a larger pool of lenders;
- ease of obtaining home appraisals, which are generally required when refinancing;
- the possibility to get your property listed for sale by real estate agents or brokers, which may help you sell your home sooner – this is specifically important in the states that prohibit personal property to be listed for sale;
- relatively steady market value, tax benefits and consumer protection laws.
Though converting a manufactured home from personal to real property can provide a series of benefits, it doesn’t always guarantee favorable financing terms for purchasers. Credit scores, down payment amounts and DTI ratios are three important factors that impact the ability of home buyers to qualify for manufactured home loans with land and to negotiate more advantageous loan terms and conditions.
Tip #2: Buy a new...or used home.
At Triad Financial Services, we offer manufactured home loans with land for both new and used homes. The main advantage of buying a new manufactured home consists in the possibility of customizing it according to your needs and wants. In addition to customizable exterior elements in terms of materials and siding colors, you can choose among different home design plans and sizes, custom-made furniture alternatives, optional bathroom components (e.g. shower cabins, bathtubs, Jacuzzi tubs, etc.), attached structures like site-built garages and porches, and energy-efficient features. Also referred to as pre-owned manufactured homes, used homes bring along a series of benefits as well. These include: a lower asking price; well-established fencing, yards, walkways and driveways; possibly better locations in communities close to transportation, employment, shopping and entertainment opportunities; and last, but not least, buying a home that’s already been completely furnished.
Tip #3: Verify the lender’s experience and reputation.
Nowadays, you can find several lenders who offer manufactured home loans with land. But are they able to close on the terms quoted? Since a variety of unforeseen issues may arise during the manufactured home closing process, no lender can guarantee that he will close on the terms previously provided. However, the odds of getting what you’ve been offered initially are much higher if you choose a reputable lender with extensive experience in the industry and a proven track record of success.
At Triad Financial Services, our experienced manufactured home loan servicing specialists know that each applicant presents a unique combination of credit history, employment background and DTI ratio. To find a manufactured home loan that fits your specific needs, we invite you to get in touch with our dedicated professionals today by calling (800)-522-2013 or emailing firstname.lastname@example.org.