Christian Mobile Home Land Loan
A Christian mobile home land loan can prove to be an effective way to finance the means to aid in the living of an affordable life. There are hundreds of people who might not necessarily have the means or the desire to live in a traditional house with a yard, or even in an apartment, condominium or townhouse. A mobile home allows a person or small family to live in a manner that helps to keep costs down, while still allowing for an enjoyable life. Many are permanent dwellers in such an abode, and usually dwell in a location shared by others of the same predilection, while others have a mobile home as a means of a vacation spot or second home. Whatever the reason, there are ways in which to help finance every aspect of life.
Occasionally a situation will arise in which a person will have a place in which to live, however to land on which to put a living space. This can be a problem especially if the person in question does not have the means to purchase a location to settle down and call their own. For this reason many banks and financial institutions offer such people the option of applying for a mobile home land loan. Once approved, someone can settle down on a piece of land that is either on a preselected property, or in a location that is shared with others. As long as the portion of land falls within zoning requirements, obtaining the needed funds should not prove to be too difficult
Those who are in the market for a mobile home land loan would greatly benefit from perusing the Internet for information. There are hundreds of websites that offer information regarding the processes involved in both seeking out the best loans, and tips for the application process as well. People who might not be familiar with the market can find helpful information that will help to put then on track to achieve the life they want to live. As many institution and loan agencies have websites, a substantial amount of information can be accessed, in addition to information that enables people to get in touch with experts in the field. There are many websites that offer electronic applications meaning that if a person is interested that do not have to only inquire into service, but save time by applying online as well. In order to do so a person must supply the proper and required information and proof of credit history.
As with any sort of loan, a person who has good credit history will have better chance for being approved for a mobile home land loan and other manufactured houses with lower rates, however, it is also not impossible for those who perhaps have a history of bad credit to be approved as well. The drawback to having poor credit history is that if approved, the loan will most likely have higher interest rates and require more of a down payment in lieu of proof of collateral. The process of acquiring the proper funds will prove more difficult for those who have less than satisfactory history yet as long as they have the means of meeting any and all monthly charges throughout the duration of a specified period they should do well.
There are several types of mobile home land loans available on the market include those for refinancing as well. The details, stipulations and regulations for all loans vary from state to state and depend on regional zoning laws and other subjective factors. However, no matter where a person lives, chances are that they will be able to receive the needed funds to finance the way of life that they have chosen
The purpose of a mobile home land loan is to enable a person in the most efficient way possible, to have a place which they can claim as their own. Financing for a mobile home is much the same as for a traditional house, with the exception being the land on which the mobile is placed. Most institutions will have plans that fit the financial situations of a wide client base, as not everyone's situation is the same. However, there are certain rules that have been put in place to regulate the type of structure can be placed in a particular portion of land. Some banks will only offer loans to people who have mobiles that have been built after previously specified date, this is to ensure that a home has less chance of falling into disrepair, as a dwelling that is unkempt contributes to devalued price of a property that could otherwise be priced at a higher monetary value.
In order for a person to receive a mobile home land loan, they do not necessarily have to already own a house. In fact finding a place on which to place a house could be considered top priority, as one could question the benefit of having a home without any land on which to place it. Obtaining such a loan is not difficult, especially with those who are of good credit standing, and most often all that is required is that the location selected is place which will meet any and all zoning requirements and will most importantly, prove to be a place where habitation is possible. For those who do not have private acreage, a possibility is to borrow funds for the purpose of acquiring portion of land within a specified community where there are other manufactured houses. Whatever one's reasoning, acquiring a mobile home land loan does not have to be a difficult process, but rather a means by which to receive a desired end and "a place for... dwelling for ever" (II Chronicles 6:2)."
Christian Mobile Home Purchase LoanUntil recently, lenders considered getting a mobile home purchase loan risky. Property values on mobile houses generally drop instead of rise like traditional property. However, financing for these manufactured houses are increasing in popularity. With lower interest rates, financial institutions have found that the market for mobile home purchase loans has not only risen considerably, but the quality of manufactured homes has improved as well, making them worthy enough to add to their investment portfolios. The market for these loans has now grown into a $14 billion industry.
Mobile homes often create images of worn-down trailers in low-income neighborhood "trailer" parks, but this is not always the case. But by definition, mobile homes are simply residences that are creates in one, two or three parts in a protected building and transported on a frame to a location or lot where the parts will be reassembled. This range includes singe, double and triple wide "trailers" as well as manufactured homes that look like they were custom-built. Nearly one in every three homes bought in the United States are considered manufactured homes. Because of their lower costs, these residences attract more than lower income families and individuals with poor credit scores. They are a popular consideration for first time homebuyers in middle-income families as well.
However, because these houses were built to be transported instead of stationary, they are not eligible for traditional home financing. In the past, by its very nature, a mobile home purchase loan often falls into the category of property loans instead of home loans. Personal property loans require a 10% down payment and can be financed over 10 to 15 years with interest rates, although tax-deductible, that are about 2-3% higher than traditional mortgages. Today, larger lenders have entered the manufactured home financing market, the industry is changing. Many institutions now only require a 5% down payment and will finance up to 20 or 30 years, depending on the borrower's credit score and how mobile the residence actually is. Increase mobility in a house also may subject it to annual vehicle license fees, but the less mobile, the great opportunities for financing. "I will liken him unto a wise man who built his house upon a rock, and the rains descended and the floods came and the winds blew and beat upon that house; and it fell not: for it was founded upon a rock" (Matthew 7:24-25).
Manufactured homes are usually purchased from a retailer who can provide the buyer with lenders who specify in mobile home purchase loans. Personal property loans still remain the most common form of loans for manufactured homes, especially houses that will be placed on a rental lot. The Federal Housing Administration (FHA) or the US Department of Housing and Urban Development (HUD) has approved lenders through their Title 1 program to help manufactured home buyers get the financing they need. This program is not a government loan program. Interest rates are higher, but fixed based on the prevailing market rate. These lenders will help buyers purchase a piece of land (up to $16,200), finance a manufactured house (up to $48,600) or a combination of both (up to $64,800). Financing limits can be increased for buyers who live in more expensive areas. All houses purchased through the Title 1 program must comply with strict FHA safety standards and serve as the primary residence of the purchaser. Although Title 1 loans cannot be used to purchase items like furniture, they can be used for appliances and other major equipment.
In most states, a buyer can secure a mobile home purchase loan in the form of an actual mortgage. These mortgages are only applicable to manufactured houses that will be affixed to a permanent foundation on the property, which can be purchased through the same loan. These mortgages cover the cost of the home as well as any repairs to the lot. Local or private banks, credit unions, and more traditional mortgage companies may handle manufactured house financing of this type. They often offer refinancing from 15 to 30 years with many options from fixed interest rates to an adjustable rate mortgage (ARM) to various hybrid programs. Some states, offer other incentive programs to first-time buyers with lower interest rates than traditional lenders.
Mobile home purchase loans can be secured or unsecured. Secured financing requires a collateral to borrow against. Unless the buyer owns the land he wishes to place the manufactured house, he has no equity to borrow against. Unsecured loans, which require no collateral can be approved must faster. Finances are usually released within days instead of weeks or months. Unfortunately, unlike traditional house mortgages, the nature of these loans leaves little room for rate negotiations. Buyers often have to take the interest rates provided. The only bargaining chip that will leverage a borrower's power is their credit rating. Borrowers with a credit score of 620 or higher can usually negotiate a good interest rate on a mobile home purchase loan. Poorer scores will increase interest rates, but some lenders will offer financing that is not driven by credit scores as long as the borrow has a moderate score of 550 or better. Online brokers can assist buyers by searching for the best deals available often saving thousands of dollars as well as the time spent researching all the various lenders.
There are many other Christian mobile home purchase loan options available from federal programs that offer little cash down and lower interest rates to shorter term loans that cover construction and home improvement for manufactured homes and lots. No matter what type of financing chosen, always study the warranty and make sure to have all the necessary paperwork in order to obtain the tax benefits on the interest payments. As manufactured homes continue to increase in quality, value is starting to rise and they are becoming more and more a solid investment, taken seriously by many financial institutions.