It’s no secret housing costs have been on the rise, and many house hunters are on the lookout for affordable homes. Mobile and manufactured homes provide more space, privacy, and autonomy than many other housing arrangements, such as renting or living in an apartment — while costing much less than buying a conventional house. Here’s a look at some of your financing options for securing a mobile or manufactured home:
The Federal Housing Administration can help you pay for your mobile or manufactured home with a Title I or Title II loan. Title I loans offer plenty of flexibility — in addition to using the funds to purchase one of these affordable homes, you also can use the money to purchase a lot for your future mobile or manufactured home, refinance your house, or even fix it up. You don’t even need to own (or intend to purchase) the plot of land your home will occupy. However, this arrangement will require you to lease the land for three years or more.
Title II loans allow you to finance a qualifying home or plot of land, but impose stricter criteria on your purchase. For starters, you must use the home as your primary residence, you can’t use the funds to finance a home on leased land, and the loan needs to cover both the purchase of the land and the home itself. Furthermore, the home needs to be over 400 square feet, built on a permanent chassis, and have been built after June 15, 1976.
If you’ve served in the armed forces, you may be able to secure a loan from the Department of Veterans Affairs. With a VA loan, you’ll have the option to purchase a mobile or manufactured home along with a plot of land; to put a mobile or manufactured home on land that you own; or even to refinance a mobile home you intend to transfer to a lot of land you possess. In order to apply for a VA loan, you’ll need a document called the affidavit of affixture, which you can typically obtain through your state’s government website. This paperwork proves your home will be affixed to the land and your property is in line with local VA regulations.
Dina Rosamond, who specializes in Manufactured Housing lending for First Federal Bank, says "Manufactured homes are an excellent choice for families who want to make the most of their budget, as well as having the freedom to choose from more options than ever before." She adds, "You can find the perfect floorplan that works for you, and enjoy the additional benefit of being able to pick the exact location of your home. With this type of housing, you're able to kick back and enjoy living in a tranquil, secluded spot in the countryside, away from the hustle and bustle of the city."
Every type of loan comes with a unique set of benefits and limitations. For more information on financing your mobile or manufactured home, consult a First Federal representative today!