Many banks and lending institutions in the country have adopted number of policies to tighten the mortgage-lending standards. This recent development in the housing market has made the dream of owning a home a lot more difficult and hard for many of American citizens.
Many people are now planning to buy a manufactured home rather than the conventional site built homes. This is because manufactured homes are affordable, self-sustainable, eco-friendly and the construction of these structures is completed 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 lending institutions and banks in the country are not willing to offer loans for manufactured houses. But, if you are ready to do a little research and, are able to get in contact with a few manufactured homeowners, then you can find a lending institution that provide loans to buy a manufactured home.
However, if you are a person who has just failed to meet the required standards for a conventional mortgage, then don’t be afraid as you still have a few more options left. If you are still planning to buy a manufactured home, you could try to get a Federal Housing Administration loan.
You can have FHA loans to finance the buying of a manufactured home, buying a plot for manufactured home installation or even to buy 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 of the FHA-approved mortgage providers are willing to offer money to borrowers with a slightly higher risk profile. The downside is that borrowers will have to 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 homebuilder to know the requirements of obtaining an FHA loan.