Many Financing Options Available to Purchase Your Dream Home
Types of Loans
FHA loans are loans that you can use to purchase both land and homes. These loans typically require a 3.5% down payment, come with low rates, and allow the borrower to include site preparation and permit costs into the loan. FHA loans usually take longer to administer and come with higher fees when compared to conventional loans. This is primarily due to extra requirements, a lower down payment, inspections, and fees.
Chattel loans are loans for personal property and can only be used to finance or purchase a home. With Chattel loans, you will receive a title instead of a deed which differs from conventional mortgages. If the home you plan on buying is on leased property, then this mortgage option may be the only type of financing available. This is the most common type of financing in planned communities because the buyer often does not own the land. These types of loans are useful if the borrower is trying to purchase a home in a mobile home park, put a home on land they do not own, or do not want to tie up their property in a loan. Chattel loans are often easier to qualify for when compared to conventional/FHA loans but the rates are normally higher.
Conventional loans are loans where the home is financed and purchased as real property. This basically means that the home and the land being bought are combined into one loan. These types of loans require a higher down payment at 10% but come with lower rates as a result. Borrowers should take advantage of this type of loan if they have the collateral to meet the 10% down payment and possess good credit.
USDA loans do not require a down payment and are designed for and administered specifically to rural areas. Borrowers are only eligible for this type of loan if the location of their house will be in a USDA designated area. Borrowers must have a credit score of 640 better in order to qualify for this loan.
Know Your Score
Improving your credit score can help you secure more favorable loan terms and a lower interest rate on your mortgage. These facts alone can save you tens of thousands of dollars over the duration of your loan. Therefore, it is vitally important to review your credit report for errors or find areas to improve your credit score. Learn your score today so that you can take the steps to improve it. A better score implies a lower interest rate.
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Wells Fargo wants to satisfy all our customers’ financial needs and help them succeed financially. We believe customers across all business segments can be better served if they bring all their financial services to one trusted provider.
Manufactured Home Mortgage is a retail mortgage broker headquartered in Rancho Cordova, CA. Our experienced staff have been providing loans to Factory Built home buyers in California for over 30 years.
21st Mortgage Corporation is a full service wholesale lender specializing exclusively in manufactured home loans. We underwrite, originate, and service our own loans. We offer a variety of loan types to manufactured housing retailers, mortgage brokers and directly to consumers nationwide.