Advantages of Manufactured Home Loans

Manufactured home loans are not only extended for the purchase of mobile homes, but they are most often used in this capacity. Other modular homes may meet the qualifications for a manufactured home loan. These loans are similar to mortgages for persons who are seeking to purchase a manufactured home instead of a traditional, permanent residence. They very from mortgages because the property itself is not valued when the loan is considered. Only the value of the modular or mobile home will be considered.

Finance Ownership of a Home

The main reason to seek a manufactured home loan is to purchase a brand new home. Instead of buying a home someone else has lived in, you will be able to purchase a home with new technology, upgraded features and more modern amenities. Similar to cars, mobile and modular home features advance nearly every year. A mobile home that is even 5 years old can be outdated. While permanent structures tend to go up in value over time, mobile homes can decrease in value. This means buying a new home can usually guarantee you will receive a better quality product.

Lower Total Cost to Finance

Even though interest rates are often higher on manufactured home loans, the total cost of financing the purchase is lower. The expense to own a mobile home is lower than the expense to own a permanent structure. The down payment requirements will also be lower. Closing costs may be only a fraction of the price as with a traditional mortgage. If you are concerned over whether home ownership is affordable in your situation, considering a mobile or modular home may make the dream of ownership a reality for you much sooner.

Simple Valuation Process

Valuing a piece of real estate is much harder than valuing the home itself. Home prices notoriously fluctuate. Mobile home prices are easier to determine. Moreover, used mobile home prices are often subject to complex valuations including auction reports and consumer statistics. With a new, manufactured home, your finance company will simply use the sticker price of the mobile home as the value of the asset in most cases. They will not need to negotiate or haggle with the manufacturer like they will with a person or company selling a used home. Just as new car loans are easier for borrowers to understand than used car loans, the process will be much easier for you as a borrower if you purchase a new manufactured home.

Predictable Resale Value

Many people purchase homes hoping they will make money on the investment. However, history has shown home values are very difficult to anticipate. Market swing, natural disasters and changing tastes can all affect the value of a home. While these factors affect the resale value of a mobile home, they affect it to a lesser degree. It is generally easier to estimate what a mobile home will be worth 5 or 10 years down the line than to guess what a home will be worth. Given, the mobile home will usually go down in value, but this value is less subject to market fluctuations.