There are numerous alternatives for manufactured home buyers when it comes to obtaining a mortgage. You can pick between traditional mortgage programs and federally guaranteed loans. No matter what your situation is, read the details of the best manufactured home lenders in Houston,Texas, and financing alternatives below.
What's The Difference Between Manufactured, Mobile, And Modular?
Manufactured houses today comply with the US Department of Housing and Urban Development's Manufactured Home Construction and Safety Standards. The United States, they are home to around 22 million people.Manufactured Homes - These houses should not be confused with manufactured dwellings. A chassis is used to build manufactured homes. Modular houses must adhere to the same building codes as conventionally built residences.
Mobile Homes -Mobile houses are still referred to as manufactured homes if they were built before June 15, 1976.
Modular Homes -A significant distinction between modular and manufactured houses is that modular homes have a higher value retention rate. A standard mortgage is also easy to get for a modular house.
A Manufactured House Can Be Financed Through A Dealer.
The prefabricated home dealer is one of the most frequent ways to finance a manufactured home. The loans are structured as a retail installment contract, which is a contract between the borrower and the dealer that specifies a payment schedule for the cash borrowed.In December 2017, the Preserving Access to Manufactured Housing Act was enacted by the United States House of Representatives. The bill has yet to clear the Senate, but if it does, it will modify the standards of the Truth in Lending Act, requiring prefabricated home dealers to follow it. People looking for prefabricated home mortgages through a dealer should be mindful of high-interest rates and costly loans for the time being.
Is It Possible to Get A Manufactured Loan Without A Loan?
If you don't own the land and don't want or qualify for an FHA loan, you can finance your prefabricated house with a chattel loan. The manufactured house is used as collateral for a chattel loan. The borrower regains ownership of their home after the loan is paid in full.Despite their popularity, chattel loans have been shown to offer fewer consumer safeguards and higher interest rates. HUD recommends contacting a housing counseling service before applying for a prefabricated home loan. During your manufactured loan search, be sure to ask any questions you may have to your possible lender. It is feasible to purchase a manufactured house with a variety of financing alternatives.
These are some of the things you must know before you decide to buy a manufactured home loan.