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The vast majority of mortgage lenders consider a manufactured home the same as a conventionally stick-built home and they are willing to provide home loans to qualified individuals. This is based on the fact that the value of a factory built home matches that of a stick-built house and can be used as collateral to guarantee the loan. This of course means if the loan goes into default the lender can begin and execute foreclosure proceedings on the home in question. There are quite a few different financial institutions that provide mortgage services. To get the best home loan for your situation it is important to shop around and see which type will give you the best deal in terms of interest rate, closing costs, and service. Here are some of the more well known types of institutions in the mortgage industry: - Banks - Credit Unions - Mortgage Brokers - Private Mortgage Lenders - Online/Internet Mortgage Lenders Most of these different types of lender have some sort of online presence. Meaning you can get the process started without ever leaving home but most banks, credit unions, and mortgage brokers will require you to visit one of their offices to fill out and sign the necessary paper work. On the other hand lenders who specialize in online home loans do not require you to pay them a visit because most of them simply do not have branch offices. They are able to conduct and arrange online loans in a fast and efficient manner often at a significant cost savings in fees and closing costs. There are two basic types of manufactured home loans; the fixed rate mortgage and the ARM (Adjustable Rate Mortgage). A fixed rate locks in a specific interest rate for the life of the loan keeping the monthly payment the same as well. An ARM is a completely different animal and needs to be considered carefully. The interest normally starts lower then a fixed rate mortgage but at its designated adjustment period that rate is dependent on whatever the current rate is. This means it can go up or down depending on current market conditions. With rates currently low chances are they will trend upward meaning a monthly payment that can be hundreds of dollars more putting serious pressure on anyone’s budget. For home buyers planning on staying in their home for 5 or more years a fixed rate mortgage is the best choice. An ARM has too many financial dangers as a long term financing option. For all intents and purposes manufactured home loans are processed and closed the same as any other mortgage. This gives the new factory built home buyer options to get loan terms that work best for their situation. To learn more about manufactured home loans please visit the website Manufactured Home Loans & Refinance by Clicking Here.
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Manufactured home loans, factory built home loan, manufactured home mortgage,
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