Refinance Manufactured Homes
It’s almost impossible to refinance manufactured homes in today’s mortgage and financial meltdown. Almost. This site has some info to help:
First, a little about manufactured homes, commonly referred to as mobile homes, which are the fasted growing type of housing in the U.S. because t hey are affordable, and offer top value.
Built in a factory using modern building methods, these homes avoid many of the pitfalls of “stick-built” homes. Their components are not subject to inclement weather, so never get wet with future mold issues. The weather also does not affect the building schedule. Usually, they are built in sections, using computerized schematics and built by workers who do nothing other than the particular job they handle. All cabinets, appliances, electric, plumbing, windows, and floor coverings are installed at the factory. There is also minimum wastage, resulting in an overall better value than normally-built homes.
These homes are delivered to the building site or park in 1, 2 or 3 pieces. If they are in more than one piece, they are simply connected there on the homeowners land or in a community.
When your mobilehome is located in a community of such, and is located on rented land, your loan is called a “chattel mortgage.” When your home is located on your own land, and the lender gives you a loan for both your home and land, it is a “real estate mortgage.” There is a big difference between the two.
Bottom line, lenders are concerned about chattel mortgages. For one thing, there’s not much keeping a homeowner in trouble from hooking the home up to a truck and taking off. There are other issues, such as how the home is classified as by the state it is located in. The normal result is a loan with a higher interest rate, and with shorter terms.
Lenders are less concerned with real estate mortgages, as the home is usually secured on a foundation, and is tied into the land … it’s not very easy to hook your land up to a truck and disappear with it.
So, how difficult is it to refinance your manufactured home now?
If you currently have a FHA mortgage, it may be possible for you to do a “Streamline” refinance:
- Interest rate reduction program (no cost)
- No income or credit qualifications options
- Refinancing options available (no cost)
- Amortization changes possible (for lower monthly payments)
- Change the length of your mortgage (for lower monthly payments)
FHA refinances can also be a great option for those who do not currently have a FHA loan, with refinancing up to 97% of your homes value, and even cash-outs available. You can also consolidate first and second mortgages into one new loan. FHA loans are usually easier to qualify for, can be used for bill consolidation, have competitive rates for homeowners with bankruptcies more than 2 years old, and have regulated closing costs.
If you are having trouble even making your current monthly mortgage payment, there may be another option for you. Loan modifications are exploding right now … lenders have way too many foreclosed homes, the government is putting extreme pressure on them to help homeowners (and not be in the real estate business!), and they would rather have what is referred to as a “performing asset” than take your home. If you would like more information about mortgage modifications, contact us through this site and we can refer you to good sources.
While it is not the best of times to be trying to refinance your mobile home, there are still viable options for you. This site will be regularly updated with the latest in various options, so bookmark it and come back often to find out the latest in how to best refinance manufactured homes.
In The News …
Manufactured Homes Refinancing
Before you can refinance your mobile home, learn the differences in manufactured home types.
Taxes Affect Manufactured Home Refinance Decision
The owner of a manufactured home asks whether to pay off the mortgage loan or invest extra money since the manufactured home is a second home or investment property.
New Hampshire Business Review
While getting a home mortgage loan is becoming difficult for many first-time homebuyers, it will soon be easier for those seeking to purchase or refinance manufactured homes.
Are Mobile Homes a Frugal Alternative?
Many banks will not loan you money for a mobile home refinance so if you are hoping to refinance to get a better rate or another reason, you may be out of luck with a mobile home.
prefabricated homes
Many of the current prefab home designs on the scene have jovial, eclectic elements of postmodernism or the clean, simple lines of futurism. The word Prefab is not an manufactured home.
Mail this post
No comments yet