TYPES OF MORTGAGE LOANS FOR
MANUFACTURED HOME



Most homebuyers usually consider a site-built single family home, but there is another option. Mobile homes provide the homeowner with one big advantage, which is that they have lots of space, and include many amenities for the money you spend. So, what are the types of mortgage loans for these mobile homes? The following is going to be a quick rundown of your options.


TYPES OF MORTGAGE LOANS FOR MOBILE HOMES

When it comes to mobile home mortgages, there are mainly two types- FHA loans and Conventional and Chattel loans.


FHA LOANS

With the FHA loan, the mortgage is basically insured by the FHA. The borrower then has to pay for mortgage insurance which provides protection for the lender in case the borrower defaults on the payments of their mortgage. FHA facilitated loans offer attractive interest rates and they also offer flexibility when it comes to qualifying for the loan.
One thing to consider with the FHA loan is that the borrower’s credit score will be the main deciding factor in the size of the down payment which will be required for the loan. Another advantage of the FHA is that family members can also becomPe co-signers when it comes to making the initial down payment. Apart from that, there are also additional grants that are available to help people make their down payments.


CONVENTIONAL & CHATTEL LOANS

A conventional loan can be secured by a lien on the home. That being said, some conventional loans can be hard to attain for manufactured home buyers because of the question about whether the loan is strictly for a home or to pay for the land. For instance, if the borrower defaults on their payments, does the lender have to come and take the home away without having any claim to the land, or does both the home and the land get turned over to the bank.


CHATTEL LOANS

Chattel loans refer to the legal term which regards personal property, and not real property. For example, a site built home is considered as real property, while a manufactured home is considered as personal property.

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Please visit http://www.mhlmtg.com/ecamp/gmfhome_2

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