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For the potential homeowner who doesn’t have a whole lot of cash saved for a down payment there are loan options that can help overcome this issue. The Federal Housing Administration (FHA) commonly insures these types of loans making them very respected in the mortgage industry. These FHA loans are all about helping lower income families who generally don’t have a lot of savings. Getting approved for an FHA backed loan is much easier because banks are able to offer more lenient terms. These types of loans can also help those who have a less then stellar credit score or are carrying some credit card debt. To help pay some of the fees and closing costs these FHA loans use federal grants and other financing vehicles. Another huge benefit of an FHA loan is only needing to put down 3 percent of the purchase price. All of this can be done for manufactured home loans with either fixed or variable rates. For members of the armed services applying for a loan guaranteed by the Department of Veteran’s affairs can be another way to keep down payment costs low. Manufactured home mortgages through the VA have helped many armed services members and veterans buy homes, something they may not have been able to do using more traditional methods. In addition to lower down payments VA loans also offer more lenient debt and credit standards, making it easier to qualify. In some cases the VA may allow the borrower the opportunity to purchase a home without a down payment. Another option that is not allowed much in today’s financial climate is the manufactured home mortgage slash home equity loan combination. In this scenario the lending institution underwrites two loans. The main mortgage is normally for around 75% of the homes purchase price while a second home equity loan covers the remaining 25%. The main purpose of this type of loan is to avoid the mortgage insurance that is mandatory for loans in which the down payment is less then 20% of the purchase price. The problem with going this route is there is no equity built up in the home and if home prices fall the homeowner can suddenly find themselves upside down on the house and at an increased risk for foreclosure. Because of the mortgage/housing issues of the past few years this type of loan option is seldom used. Public sector employees such as a teachers, fire fighters, police officers can also take advantage of low down payment options offered to them by a large variety of lending institutions. There are many manufactured home loan products tailored just to these types of workers. Prospective home owners should spend time researching the many options available. Lowering a manufactured home loan down payment is only one of many things that home owners need to be concerned about, but saving money on a home purchase is something that every home buyer wants to do. To learn more about manufactured home loans please visit the website Manufactured Home Loans & Refinance by Clicking Here.
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