Christian Financing For Manufactured Homes

A buyer who is seeking Christian financing for manufactured homes may face a few obstacles that do not generally apply to standard mortgage loans for conventional homes. A wise consumer will spend time researching and comparison shopping before settling with a specific lender. The terms that are available when seeking financing for manufactured homes can drastically differ from provider to provider. Many modular home communities have the capacity to both sell and finance these properties. A consumer should not feel an obligation to obtain funds from the community or dealer that is selling the home. Buyers can generally feel free to negotiate loans with outside sources. Other areas that a potential borrower should carefully explore could include any warranties that accompany the property including the installation of the home, title concerns, any special regulations that apply to this type of domicile, and issues pertaining to the land where the home will be installed. Potential buyers should also look into whether or not the home will appreciate in value over time, since this is a factor that can vary when purchasing this kind of property.

Manufactured homes are also called mobile, modular or site built homes. There can be a wide variety of difference in houses that have been created off site. Understanding these differences is the first step toward making an educated purchase and selecting the best option when considering financing for manufactured homes. The traditional mobile home has changed greatly since the day of the simple house trailer. A site built home is one that is, as the name implies, built completely on site. The modular domicile is constructed in sections at a factory. These sections are then shipped to the location of residence and attached together on site, usually by a local contractor who has been hired for the job. If the work has been performed properly and the location of the home merits it, the value of the property may increase over the years. A manufactured home is built entirely in a factory, but might, as with their modular counterparts, be shipped in pieces and reassembled on site. Since these properties are not always affixed to a permanent foundation, their values can depreciate. They can be difficult to refinance as well. These features establish some of the key differences between financing for manufactured homes and traditional mortgage loans. Even with these differences, housing in this category can provide an economical solution for buyers. The Bible tells of how God hears the prayers and the desires of believers. "Lord, thou hast heard the desire of the humble: thou wilt prepare their heart, thou wilt cause thine ear to hear." (Psalm 10:17)

Some communities have specific regulations when it comes to this type of housing. For this reason, potential buyers should make sure that they understand any local regulations that may apply before moving forward. Having changed drastically from the days of the humble trailer, the factory built home has grown in popularity recently and the bias against such housing options continues to fade. In addition, these homes have become much more upscale than previous models and have a more residential appearance than was once the case. With all of these changes, there are still many differences when it comes to financing for manufactured homes. Among these differences are higher interest rates, and the way that administrative fees are paid in this type of housing. Since the general notion is that these homes are not as permanent as traditional real estate, the interest rates will generally be much higher. The administrative fees are usually handled by the lender rather than passed on to the borrower in most cases. Of course, any expenses that a lender must incur usually are passed on to the borrower in one way or another.

The presumed mobility of this property is largely responsible for the differences in the terms that are available when obtaining financing for manufactured homes. The transitory nature of this property decreases its value as loan collateral. If a property in this category is perceived as more permanent, the lending terms that apply to the property tend to be more reasonable. Many lenders will only finance these properties for a period of ten to fifteen years and require a larger down payment of at least ten percent. Other lenders may take a more traditional approach and offer terms such as twenty or thirty year mortgages with only a five percent down payment. If the home buyer owns the land on which the home is located and the home has been permanently affixed to its location, it is more likely to be viewed as a standard home that is eligible for more traditional financing. The types of financing for manufactured homes that are generally available could include loans from personal property loans, conventional mortgages, and financing that is offered by a manufactured home community. Some buyers have the opportunity to buy the land at the home's location along with the home itself while others sign a land lease agreement.

The regulations and guidelines that pertain to financing for manufactured homes can vary from state to state. A wise buyer will make sure that they understand their state's specific guidelines before finalizing any purchase. Some lenders deal specifically with homes that are brand new and have not yet been installed. Others only provide financing for existing manufactured properties that are already on site. There are also federal regulations that pertain to the construction quality of these properties. A wise borrower will consult one of the many online sources that can help the consumer better understand the nature of these homes.

Christian Modular Home Financing

Before seeking modular home financing a potential buyer should become familiar with all aspects of this type of funding. In general, financing options are quite similar for site built residences and for prefabricated homes. If an individual is unable to afford to purchase this alternative style of housing without the use of credit then a construction loan will have to be obtained. Typically, this type of financing, which is considered a line of credit by most lenders, is more costly when compared to securing a mortgage for an existing dwelling. A construction loan will help a buyer to cover some of the anticipated costs associated with building a modular home, such as work conducted by subcontractors, certain permits and fees and the actual construction phase, but not necessarily architectural plans or site testing.

With everything on the rise throughout the United States, from gas for automobiles to increasing food prices, purchasing a modular home may be a more viable option for an individual compared to buying an existing residence. Before further discussing modular home financing, it may be best to first define what exactly this type of housing entails. Modular homes are built in a factory and then assembled in sections on the buyer's land. In contrast, site built homes, often referred to as stick built, are constructed directly on a particular site. Both site built and prefabricated houses typically increase in value over time and they are both constructed to the same specific Uniform Building Codes (UBC).

There are several advantages for a person to think about when deciding whether to choose prefabricated construction or not, including it usually takes half the amount of time to construct one of these houses, they are built in climate controlled facilities and generally this alternative form of housing is less expensive when compared to site built structures. Consumers must not confuse a prefabricated home with a manufactured house, also called a trailer or mobile home. This type of dwelling, though also built in a climate controlled factory, may or may not be set up on a permanent foundation. Trailers also often decrease in value over time since they are typically considered personal property, which generally makes it increasingly more difficult for a buyer to securing financing.

As with a site built house, an individual will need to secure a construction loan when they purchase a modular home. When seeking modular home financing, borrowers have the option of acquiring a construction/permanent loan, which includes both the construction line of credit and mortgage all rolled into one package. An advantage to this type of financing is the buyer will only have to pay one set of closing costs instead of two, but, interest rates tend to be higher with construction loans. Before obtaining any form of funding, a potential borrower should spend time creating a construction budget, which will include all the details of the costs for the project, to better have an understanding of how much modular home financing will be needed. Consumers should realize that construction loans are for short periods of time, typically no more than 12 months, and the borrower will pay the interest only until the project is completed, at which time, the financing will convert to a traditional mortgage and the individual will then pay both interest and principal.

A significant advantage for buyers in purchasing a modular home versus building a stick built house is there is usually a reduction in cost overruns for these projects since these structures come with a guaranteed price and construction occurs in a climate controlled factory, eliminating weather-related delays. When seeking modular home financing, a borrower also has the possibility of using the equity in their land for a down payment. It would be wise for a consumer to conduct extensive research in securing a construction/permanent loan since this is a specialized type of mortgage lending.

Whether a person obtains modular home financing, a traditional mortgage for an existing residence or funding for constructing a site built house, the bottom line is the buyer is securing funds for a loan. Scripture provides advice about borrowing in general by stating, "The rich ruleth over the poor, and the borrower is servant to the lender" (Proverbs 22:7). The wiser decision for an individual considering buying a house would be to diligently save as much as possible for such an expensive acquisition. If this option isn't feasible, then a potential buyer should invest much time in selecting the most appropriate and affordable house and they should shop around to find the best deal in modular home financing.

Christian modular homes are fast becoming an alternative choice for buyers with an estimated five to 10 percent of all houses built in the United States being this form of residence. This figure is expected to increase to 35 percent within the next 10 years. Floor plan options are numerous, from a modest vacation getaway, a simple single-story ranch, a four-plex unit, to an exquisite two-story mansion. Manufacturers of these types of houses can assist a buyer with everything from site selection tips, obtaining necessary permits, choosing a floor design and even modular home financing. The savings an individual is likely to experience when purchasing this style of housing compared to constructing a site built home could potentially be used to buy top quality appliances, upgrade to customized options, add nicer carpeting and include a host of other features.





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