Factory Built Home Loans
____________________________________________________________________________________________________
An Information website on Mobile and Manufactured Home Financing |
Factory Built Homes |
|
The goal of this website is to educate you on Factory Built Homes, as well as the specifics of financing the purchase of a Factory Built Home. Over six decades, Factory Built Homes have come a long way. With a variety of design options, Government safety legislation, and sophisticated production methods, modern Factory Built Homes offer an affordable option for any homeowner. |
 |
The Factory Built Home industry is very different from on-site built housing. These differences are found in the methods that the Manufactured Homes are built, Federal and State rules and regulations, Real Estate handling, and Loans and Financing.
Factory Built Homes go by many names: Mobile Homes, Manufactured Homes, Prefab Homes, Modular Homes. There are some subtle differences between the different types of Factory Built Homes, but one similarity is that the Loans, Financing and Lending are very different from traditional home financing.
Manufactured or Mobile Homes are built in a factory, transported to their location, and placed on top of a foundation. So, the Mobile Home is still "mobile" because it is not permanently anchored into the foundation. It is not easy to pick-up the manufactured home and leave, but it is still possible. For this reason, Lenders must keep in mind that their collateral (the mobile home) can dissappear. There are still a good deal of Financing options for Factory Built Homes, but you are better off working with a company that specializes in Mobile Home Loans. |
|
Factory Built Home Loans |
|
|
|
Factory Built Homes are among the most affordable options for homeownership, however, purchasers of Factory Built Homes have very different lending options. Mobile Homes and Manufactured Homes can be difficult to finance, especially if purchased on top of rented land. Think about it from a lenders perspective. Mobile Homes rarely build equity, and the property owner can decide to use the land in any way they choose. Therefore, Manufactured Home Loans are generally structured similar to auto loans. |
The equity in a Manufactured Home will usually not build over time, so a lender will worry that if a loan defaults they will be left with a home that has gone down in value.
It is very important to work with a professional experienced in the ways of Manufactured Home Loans. Many banks will tell you that they can help, and they mean well. But, often times they have let a purchaser down in the ninth hour. I once heard a story of a Mobile Home in Escrow when the Loan officer finally learned that his bank would not finance Mobile Home Loans. |
|
|
|
