How Long Do You Finance Mobile Homes?
A mobile home is not your average house. They are built differently than traditional homes, with much lighter materials and faster moving parts. Because of this, they cost less to build but take longer to ship from the factory as opposed to traveling in a vehicle.
The most expensive component of any mobile home comes down to flooring. The floors are usually made out of laminate or plastic material which adds up quickly if you are buying one new.
Another important part comes down to windows. Since these houses do not have walls that close them off, there are very little insulated windows. This can be costly to cover.
This article will talk about how long it takes to finance a mobile home and what things affect this time frame.
Reasons why you should or shouldn’t finance a mobile home
One of the biggest reasons to consider financing your new mobile home is how easy it can be! While buying a house is typically more expensive than buying a condo or a manufactured home, it doesn’t make sense to avoid investing in housing just because it’s not for everyone.
With a mobile home loan, you’ll have access to lower interest rates as well as less documentation requirements than with a house mortgage. This article will talk about some important things to think about when deciding whether or not to take out a mobile home loan.
Why would someone want to use mobile home loans instead of house mortgages?
Most people agree that mobile homes cost more per square foot than houses do, but they’re usually much cheaper than a lot of other types of dwellings. A one-bedroom mobile home costs around $100,000 – $150,000, while a one-bedroom apartment can easily run over $300,00 a space.
A two-story house only runs around $200,000, making a mobile home seem like a better deal. However, this isn’t always the case since most mobile homes are built slightly bigger than their counterparts (the average size difference is 250 sq feet).
This means a couple of extra rooms, which may appeal to some.
How long you should finance a mobile home for
When looking to purchase a new mobile home, how much money you have in the bank can play an important role in determining how long you should finance it.
Many sellers will offer more expensive down payments or lower monthly mortgage payments due to their low income. By doing this, they’ll get rid of the vehicle faster which is usually the goal when selling a mobile home.
By choosing not to require as much equity as possible, these sellers help close the sale quickly. This way, they don’t have to worry about paying off the car loan and keeping up with maintenance costs.
It’s totally understandable if you don’t have a ton of cash sitting around. Fortunately, there are ways to pick up some extra money so that you don’t need to buy very inexpensively.
Popular loan amounts for mobile homes
A less expensive way to get your feet wet in owning a manufactured home is through financing. This is typically referred to as personal lending or owner financed.
Most individuals do not own a manufactured home so there are many more resources available than there are for conventional housing loans. Many companies will let you finance your new home with lower down payments and higher monthly installments than what most house credit lines allow!
This article will discuss some popular mobilehome financing options and how much money they cost per month. These include pay-off lots, land packages, and direct sale. We will also look at how long it takes to achieve total payoff of the mortgage and vehicle.
Calculate your monthly payment
The next thing you will need to do is determine how long you want to finance this mobile home. This is an important part of buying a new one because it could affect the interest rate or even the total cost of the mobile home!
You can choose to finance for just a few months, a couple years, or permanently depending on your budget and what kind of lifestyle you want to have in the future.
It’s best to only finance for a short time frame if you don’t have much money due to a job or life changes. It may be more affordable that way!
That said, it’s better to pay off the loan earlier than later. A lot of people don’t realize how expensive paying late fees and re-financing are! And since mobile homes increase in value over time, investing early helps in the future price.
Be sure to check out our article about how to buy a mobile home with little down! That info can help you get lower payments as well.
Consider selling your home
The number one reason people give for keeping their mobile homes is that they finance them. This is typically done through an entity such as CHIP, GMAC or US Bank. By using these companies to fund your mobile home, you get the peace of mind in knowing that there are other entities backing this loan!
However, this can be a very expensive way to keep your mobile home. Many individuals who purchase a mobile home through financing with CHIP, GMAC or US bank end up having to sell their house to pay off the mortgage!
Selling your home is never a pleasant experience, but doing it to pay for a mobile home can be even more frustrating. It takes longer than buying new furniture because you have to find a buyer, negotiate the sale, and then hope for the best when everything comes together.
Check the market before selling
Before you sell your mobile home, check to see if another one is listed for sale in the area or not. If so, that could be a sign of trouble as there may be potential buyers who have competition.
It’s also important to make sure it’s actually getting lots of traffic. Many sellers list their homes with an agency that represents them, but they never get any interest.
If possible try going to the mobile home to assess it yourself by looking at it and talking to people about it. There are some things like appearance and functionality that most people can agree on, which makes it much easier to determine whether it’s worth buying or not.
You should always consider your alternatives before investing in anything.
Consider buying a new mobile home
When you finance your mobile home, how long you keep it depends mostly on two things: how much money you have in the bank and what kind of lifestyle you want to live in one day.
If you don’t think you will be living in a mobile home very long then paying down the loan faster makes sense. This is good because you will save money in the long run!
However, if you do plan to live in a mobile home for at least several years or even permanently, then keeping up with payments as quickly as possible can cost you less in the long run.
The best way to know which route is right for you is just to be honest with yourself about whether you will still enjoy this product if you need to put some more money into it later.
Check your credit before buying
Before you even begin looking at mobile homes, you will want to check your credit! This includes checking all three major credit bureaus (Experian, Equifax, and TransUnion).
If you find bad credit in any of these sites, then it is very likely that you would not be able to finance the mobile home. Luckily for you, there are many ways to get good credit quickly!
Take some time to fix your credit before shopping for a new mobile home. The better your credit looks, the greater chance you have of being approved for financing.
Also make sure to look into interest rates as well as terms for both the loan and the credit card(s) you will use for payment.
