Manufactured homes, like mobile homes, are housing units built in factories rather than being constructed at site like conventional homes. They are then taken to the place where they are going to be occupied, by tractor-trailers. They are usually much cheaper than traditional site-built homes and are often associated with rural areas and high-density clusters. Though close to mobile homes, these don’t move around much. Unlike motor homes, manufactured homes are not self-propelled vehicles containing housekeeping space inside them.
Manufactured homes are regulated by the United States Department of Housing and Urban Development, via the Federal National Manufactured Housing Construction and Safety Standards Act of 1974. Generally, they avoid the jurisdiction of local building authorities. It is this national regulation that has allowed several mobile home manufacturers to become national players, whereas by contrast, producers of modular homes have to abide by state and local building codes.
Getting home financing for manufactured homes is relatively tougher compared to getting finance for a traditional site constructed home. This is because financial institutions consider these loans risky, due to the tendency of manufactured homes to rapidly depreciate in value. The interest rates are usually higher and the terms are smaller.
The amount of finance you can obtain is based on the value of your home, your credit and your job history to name a few. However, most companies try to get you what you want or need. The interest rate that you will be offered for manufactured home finance is based on several factors. Some of these include your credit history, the amount of the requested loan, and the model year of the home.
You can also get home financing by providing your existing manufactured home as collateral. You can use the money for home improvements, debt consolidation or to take care of other expenses.