While trying to avail a mobile home loan, there has to be certain criteria that have to be looked into. Mobile home loans are unlike ordinary home loans. A mobile home is otherwise called a manufactured home. They are known as mobile homes because the parts of the home are built in a factory, and then taken to the site.
They are then fixed in a site, which is most of the time rented and it stays there permanently. If the need arises, the home can be dismantled and moved to another location. The term mobile home was used on factory built homes. There was a HUD code that was enacted in 1976.
When it comes to mobile home loans, the buyer can either avail a loan for the land or for the home. He may acquire the land out of the money borrowed, and this may also buy the mobile home along with it. It is his choice to pick what he needs, and it has to be according to his requirements.
Those individuals, who apply for mobile homes, must always be ready to make a down payment of around five to ten percent of the value of the land or the home. The borrower can also choose the repayment time if he wishes to. He may repay the loan anywhere between the time period of fifteen to thirty years.
The interest rates may also vary, and the lenders will have variable rates as well as fixed rates. Not everyone can be eligible for a mobile home loan. They will have to meet certain criteria to do so. This is also a wise idea to do so, as it will prevent fraud of all kinds, and the company can safeguard its interest.
As with any home, there will be building standards to follow. With mobile homes too, there are building standards that will decide whether the owner is eligible for the home loan or not. They will have to fall under the safety standards and act as well as the housing construction rules, to obtain loans.
The mobile homes will have to be built in sections, such as single, double or triple ones. They must also not be moved with wheels, or any such device that will allow the construction to move in any manner. Once the entire house has been built, it has to be fixed permanently on the site.
The property of course will be inspected by people, and the owners must be more than willing to do the needful. There will be a lot of safety standards that will be taken into consideration, when it comes to assessing the home for a loan. It will include the strength of the building, and also the quality will be taken into consideration.
There will also be other conditions such as durability to heat, fire and some other natural calamities. The entire mobile home has to be in good condition, before the lender can approve the loan and also release the money. Even such things as plumbing and other conditions will be scrutinized.
Sometimes there will be associations, or groups that own the land, and there could be a community formed with mobile homes. In such cases, the ownership can be overlooked, but not in a way that there will be no documents of any kind. If the owner is single, then he will have to provide the ownership proof before he can get the loan sanctioned.
When a mobile loan taken by any owner, he must make sure that he is the owner of the home. Even refinance is allowed for mobile homes, but again this will have to fall under the above category. The borrower must also live in the mobile home, and it must be his prime residence before he can think of availing a loan. Interest rates will vary, according to the profile of the client and his needs.