Many banks and lending institutions in the country have adopted a number of policies to tighten mortgage-lending standards. This recent development in the housing market has made the American dream of owning a home much more difficult. Before you look at manufactured homes for sale, it’s a good idea to understand how to find the best financing available to you.
Mortgages For Manufactured Homes For Sale
Many people now plan to buy a manufactured home rather than a conventional site built home. This is because manufactured homes are affordable, self-sustainable, and eco-friendly. Also, home builders complete the construction of these structures at a rapid pace. However, some of the manufactured homeowners are also finding it hard to acquire a mortgage.
This is because some of the lenders in the country are not willing to offer loans for manufactured houses. But, with a little research and help from other homeowners, you can find a lender that does.
However, if you’ve failed to meet the requirements for a conventional mortgage, don’t be alarmed. You still have a few options available to you. If you still plan to buy a manufactured home, you can attempt to acquire a Federal Housing Administration loan.
FHA Loans For Manufactured Homes
You can use FHA loans to finance the purchase of manufactured homes for sale, a plot for manufactured home installation, or even both the land and the house. The Federal Housing Administration is the insurer of FHA loans. If you are planning to apply for an FHA loan, then take note of the fact that not all manufactured homes are eligible for an FHA loan.
However, the good part is that most FHA-approved mortgage providers are willing to work with borrowers that have a slightly higher risk profile. The downside is that borrowers must pay an annual and upfront premium along with their normal loan amount, implying that the FHA loans can be a little more expensive to borrowers with risk profiles.
If you are proceeding with the plan of getting an FHA home loan to buy a manufactured home, then make sure to consult with your home builder to discover the requirements of obtaining an FHA loan.