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A mobile home is generally considered to be an affordable option for any individual who wants to purchase a home but has limited financial resources. The United States Department of Housing and Urban Development refers to mobile homes as manufactured homes. These are defined as homes that have been constructed to its Manufactured Construction and Safety Standards, or HUD Code. There are numerous mobile home financing options that are available for individuals who wish to get a mobile home. In this article, we shall provide some general information about mobile home financing options. More specifically, we will talk about the personal property loan, about the conventional mortgage loan, about the FHA loan, and also about the VA loan. A manufactured home that does not qualify as real estate or real property may be eligible for financing as personal property. Indeed, this kind of loan is identical to both boat and car loans and is adequate for individuals who are buying a mobile home that shall be installed on a leased lot. Even though private lenders usually make this type of loans, the main source is manufactured home retailers. Interest rates for this mobile home financing option are much higher than the ones on regular mortgage loans. A manufactured home that was been constructed after the fifteenth of July 1976 and that is attached to a permanent foundation qualifies for mobile home financing via a conventional mortgage loan. The permanent foundation must meet the standards that are employed for FHA, Rural Housing, and also VA and that are adopted by private lending entities. The manufactured home needs to be on land that the individual owns or is about to buy. This is because ownership of the land makes the manufactured home a real estate property. A person can employ a mortgage loan to buy the mobile home or the lot or even for both. Loan options are the same for manufactured homes and for houses that are constructed on site. The FHA insures mortgage loans for manufactured homes that are built on permanent foundations via two distinct programs: the tile I and the title II. The title I program enables purchasers to buy a house and a lot or just a lot. According to some reports, the maximum loan amount for the manufactured home alone is about seventy thousand dollars. The maximum loan amount for both the lot and the manufactured home is ninety-two thousand dollars. If the individual wishes to buy a lot only, then they shall be given twenty-four thousand dollars. The maximum term for a single-wide manufactured home and lot is twenty years. The maximum term for a lot alone is fifteen years. The FHA imposes that the lot be appraised by an appraiser that has been validated by the HUD. The individual who is borrowing has to intend to live in the manufactured home as their main residence. When it comes to the title II program, the individual is required to buy both a lot and a manufactured home. The maximum term of this loan is thirty years and it musts cover both the lot and the mobile home. In addition to that, the finished grade elevation of the mobile home must be beyond the one hundred-year flood mark. Eligible veterans may employ a loan that has been guaranteed by the VA for financing purposes. The VA loan can be used to finance ninety-five percent of the purchase price, or the invoice price of the producer, adjusted for options that the retailer either includes or removes, plus the VA funding fees and a few other fees. Through the appraisal, the individual will be able to know what the maximum for a used manufactured home and lot is.
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