Manufactured homes are a great alternative to traditional, stick-built properties for numerous reasons, but especially when it comes to cost. Traditional homes are often hundreds of thousands of dollars more than manufactured properties, which makes them out of reach for many Americans.
While less expensive, the financing process for manufactured homes can be challenging for buyers, and this guide explains key factors to be aware of when it comes to home buying.
Conventional Mortgages Are Not Usually an Option for Manufactured Homes
When buying a stick-built home, most people apply for a home loan to secure the property. With manufactured homes, lenders are less likely to provide a loan. That’s because these properties are typically lower in cost, which makes them less advantageous to lenders when it comes to interest fees.
What Types of Loans Are Available for Manufactured Homes?
While buyers can’t usually get conventional mortgages, there are other types of loans that can be used to purchase a manufactured property:
- Federal Housing Administration (FHA) Loans – The FHA offers Title I and Title II loans to mobile and manufactured home buyers. Title I loans can cover the purchase of just the property, while Title II loans can cover the home and the land it’s being erected on.
- Fannie Mae/Freddie Mac Loans – Fannie Mae and Freddie Mac are what’s known as government-sponsored enterprises and their goal is to keep housing markets affordable. These programs can also help people purchasing manufactured homes and may only require a small down payment in some cases.
- Personal Loans – Personal loans can be sought through one’s bank or credit union, or they can be procured from other lenders. Interest rates may be a bit higher depending on the lender, so it’s important to do your research before agreeing to loan terms.
Regardless of which type of loan works best for you, there are some steps you can take to boost your chances of getting approved. Review your credit score prior to applying for loans to see where you stand and carefully consider your budget when deciding on an appropriate loan amount.
We Can Help Las Cruces Home Buyers Find the Property of Their Dreams
Fiesta Homes has helped home buyers throughout Las Cruces find amazing properties thanks to our wide selection of floor plans. However, we also provide information on financing packages to ensure home ownership is within reach of all families, regardless of budget. Call 575-525-4680 for more information or contact us today.
