Fifty years ago, when modular homes started becoming popular it was virtually impossible to get a modular home mortgage from a traditional lender. Since they had wheels and could moved they were treated as a vehicle and typically a modular home mortgage was subjected to the same interest rates as cars and trucks, higher than that available for purchases.
Up until a few years ago there were few options in financing the purchase of a manufactured home, but with the growth of the internet, a little research can find numerous opportunities to find a modular home mortgage. Although many of the same factors involving any other type of loan will apply, good credit rating, an inspection of this and if applicable the lot on which it sets, there are lenders willing to finance the purchase.
When modular parks began opening, a modular home mortgage became slightly slower to obtain, especially if the modular was located on a lot and the wheels had been removed. Still, lenders were reluctant fearing the owner could hitch it to a truck and disappear.
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When people began buying it and putting them on land that they owned, some lenders determined the ownership of the land made the buyers more stable and agreed to start handling loans for those going on private property. It was typically finance companies offering the loans and even today, traditional banks are related to offer.
Many Modular offer the amenities usually found in traditional homes, one of the primary concerns of banks and other lenders is that it depreciate, unlike a traditional house, which tend to see their value go up over the years. Getting a mortgage is harder because their value typically falls every year, similar to a car, but in contrast to a vehicle the purchase price is somewhat higher and some lenders fear the modular home will not exceed the length of the mortgage.
Obtaining a mortgage for a used manufactured home is even more difficult, regardless of the age or condition, but there are several lenders willing to write a Modular home mortgage, with interest rates in line with the additional risk of issuing the loan. Additional down payments may also be required to bring the principal amount of the loan down considering.
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Some interesting home mortgage options at Modular Home Mortgage include balloon mortgages, jumbo mortgages, interest only, low deposit, no down payment, down payment assistance mortgage, Federal Housing Administration loan, Veteran's Affair loan, relocation mortgage and holiday home mortgage. Each option is structured towards a certain aim and goal and gives value to each mortgage application instead of treating them all as similar. This is especially advantageous to those who do not qualify for the traditional mortgage options.