Modular Housing LoanCredit Cards and LoansGetting a modular housing 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 or modular housing is "mobile home". For this reason, lenders tend to look at modular housing loan qualification more the way they would look at a car loan or other personal loan. The value of the modular home comes into play, but not in the same way as a "stationary house" would. This is true even-though many modern modular houses are bolted to a foundation in the same way that a "built-in-place" house is. In recent years there have been some changes in this industry however. The percentage of modular housing loans for 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 modular housing 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 modular 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 modular housing loan.
|
