factorybuilt home loan

Getting a factorybuilt home loan can sometimes be difficult or costly. The reason is that unlike other types of real estate loans, a factory built home can fairly easily be moved, leaving the mortgage holder in the lurch with nothing to secure the loan. In fact, the old term for factory built housing is "mobile home". For this reason, lenders tend to look at factorybuilt home loan qualification more the way they would look at a car loan or other personal loan. The value of the factory built home comes into play, but not in the same way as a "real house" would.

In recent years there have been some changes in this industry however. The percentage of factory built houses that are sited on land owned by the homeowner (rather than rented land) has been increasing. The credit worthiness of the average applicant for manufactured home loans has increased as well, with many older people placing factory built homes on retirement property that they own.

Whatever your situation, it is to your advantage to shop for the best possible financing for your manufactured home. Getting financing from the builder of the home, while convenient, will often come at a very high price. Also take care to obtain the land for your home first. It is best to purchase the land as this greatly improves the chances that you can get "ordinary" real estate financing for the home. Where this is not possible, the longer your lease on rented land, the better your chances for getting a low rate on your factorybuilt home loan.

For alternatives to a factorybuilt home loan, head back to our home page and have a look around.

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