Mobile Homes And Trailer Homes
While the terms mobile home and manufactured home are often used interchangeably in the home buying process, the former term has been technically obsolete since 1976, when the National Manufactured Housing Construction and Safety Standards Act enforced by HUD went into effect. The same is true of trailer. While the term is still sometimes used colloquially, it no longer accurately represents what manufactured homes are.
Just remember, mobile home refers to any manufactured home made before June 15, 1976. Manufactured homes these days feature more solid structures and greater amenities than their predecessors, making the distinction between them an important one.
What Are Three Disadvantages Of Manufactured Housing
Are you ready to buy a home? Weighing the pros and cons of manufactured homes also called modular or mobile homes will help you decide if they’re right for you. The three main disadvantages of modular homes appear during the buying and selling process.
Three disadvantages of manufactured housing include depreciating value if the land isn’t owned as well, fewer mortgage options and a stigma that may attract fewer buyers when it’s time to sell.
Accessing Your Funds With A Heloc
- You may be given an access card
- An option to transfer funds online to your bank account
- A physical checkbook where you can write checks
- Or a bill pay option to make specific payments
Once your HELOC is open, youll have a variety of options to access the funds up to your pre-determined credit limit.
Most banks and mortgage lenders will provide you with an access card that works kind of like an ATM debit/credit card. You can make purchases with it and/or withdraw cash at a branch location.
You may also be given the option to transfer funds to a linked bank account, or be given checks that can be written to anyone for any purpose, which are deducted from your credit line.
There may be a bill pay option if you want to use the funds to pay bills, or an option to transfer funds over the phone or via mobile banking.
In any case, it should be pretty easy and convenient to access your money.
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Research The Cost To Refinance
Youll have two choices when it comes to thinking about refinancing that will influence the cost to refinance: Whether to use a limited cash-out refinance or a cash-out refinance. Likewise, youll also want to speak with your lender to get a sense of any attached expenses. Note that youll need to be prepared to pay more in property tax each year as part of your mobile home refinance as well.
Second Mortgage Vs Refinance: Whats The Difference
A second mortgage is different from a mortgage refinance. When you take out a second mortgage, you add an entirely new mortgage payment to your list of monthly obligations.
You must pay your original mortgage as well as another payment to the second lender. On the other hand, when you refinance, you pay off your original loan and replace it with a new set of loan terms from your original lender. You only make one payment a month with a refinance.
When your lender refinances a mortgage, they know that theres already a lien on the property, which they can take as collateral if you dont pay your loan. Lenders who take a second mortgage dont have the same guarantee.
In the event of a foreclosure, your second lender only gets paid after the first lender receives their money back. This means that if you fall far behind on your original loan payments, the second lender might not get anything at all. You may have to pay a higher interest rate on a second mortgage than a refinance because the second mortgage lender is taking on increased risk.
This leads many homeowners to choose a cash-out refinance over a second mortgage. Cash-out refinances give you a single lump sum of equity from a lender in exchange for a new, higher principal.
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Eligibility Requirements For Refinancing Mobile Homes
Some of the requirements for refinancing mobile homes with eLEND include:
- Your mobile home must be at least 400 square feet in size.
- The home must be on a permanent foundation and cannot be situated in a mobile home park.
- Your mobile home must have been built after June 15, 1976 and be in conformance with the federal manufactured home construction safety standards.
- The refinance home loan must also cover the land that the mobile home sits on. If it does not, and the mobile home is on land you do not own, we can still help you! Our personal property loans are *powered by MHL. Talk to one of our home loan specialists today!
Learn more about refinancing mobile homes with eLEND, and about options for refinancing an investment property.
Lender NMLS: 2826
Trade / Service marks are the property of American Financial Resources, Inc. DBA eLEND. For more information, please visit www.nmlsconsumeraccess.org. Some products may not be available in all states. This is not a commitment to lend. All loans subject to credit approval.
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Can I Buy A House With A 480 Credit Score
Youll find it very difficult to borrow with a 480 credit score, unless youre looking for a student loan. In particular, youre unlikely to qualify for a mortgage with a 480 credit score because FHA-backed home loans require a minimum score of 500. But your odds are a bit higher with other types of loans.
Can I Get An Fha Loan On A Manufactured Home
FHA mortgage loans are available for much more than just suburban homes or condominiums. FHA loans can also be used to purchase manufactured homes and/or modular homes. To be eligible for FHA mortgage insurance, the manufactured home must be built after June 15, 1976 and there must be a certification label to prove it.
Why You Can Trust Bankrate
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our loans reporters and editors focus on the points consumers care about most the different types of lending options, the best rates, the best lenders, how to pay off debt and more so you can feel confident when investing your money.
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Financing Manufactured Homes Versus Mobile Homes
Whats the difference between mobile homes and manufactured homes?
People tend to use these terms interchangeably, but there is a difference. The difference matters when youre trying to finance a new home:
- Mobile homes: Built prior to June 15, 1976, these homes will not qualify for a mortgage loan it may be hard to get any secured financing at all
- Manufactured homes: Built on or after June 15, 1976, following government safety regulations. These homes might qualify for a mortgage loan. And if not, there are some other alternatives
That June day in 1976 is important because its when the Department of Housing and Urban Development started regulating the safety of manufactured homes.
Homes built to HUDs safety standards usually have a HUD tag attached to them.
But, even if the manufactured home youre buying was built to HUDs standards, it may not qualify for a traditional mortgage. If the home cant clear a few more qualifying hurdles, you may need an alternative form of financing.
Best For Low Down Payment: Elend
For borrowers who dont have a lot of cash on hand, eLend offers mobile home loans with up to 100% financing available.
Low down payment requirement, up to 100% financing available
Low mortgage rates
Geographic restrictions may apply to some programs.
Mixed customer service reviews
eLEND is our best mobile home lender for low down payments because of its use of the government-backed loan programs that often carry zero to 3.5% down payments and its DPA program that further supplements the down payment burden for its borrowers.
eLEND is a division of American Financial Resources, Inc. Company with a lot of experience in the industry. It works to provide affordable home financing options to first-time buyers and existing homeowners. The company utilizes the latest technology and delivers educational resources to customers in an effort to simplify the mortgage process.
The company offers USDA, FHA, VA, conventional fixed, and adjustable-rate loans. If you qualify for its DPA program, you can lower your down payment expense even more. The DPA allows you to use gifted funds toward your down payment. Furthermore, if you are a community service professional, such as a police officer, firefighter, EMT, or teacher, or you work in the medical field or the military, and you are a first-time homebuyer, you can qualify for the DPA.
For mobile home loans, eLEND requires you to own the land. For those wanting to use rented land, they can help you via a related company.
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How Hybrid Helocs Work
The fixed-rate HELOC is considered a hybrid. It sits somewhere between a traditional HELOC and a home equity loan. So, you can withdraw the amount of money you need from your credit line and then convert it to a fixed interest rate.
You may be able to get a fixed-rate HELOC or a hybrid that allows you to convert the entire loan or a portion of it from a variable rate to a fixed one. However, these loans can come with restrictions on their withdrawal terms, which may influence your decision.
Generally, HELOCs function on a 30-year term basis. Often, a fixed-rate HELOC comes with a draw period of 10 years and a 20-year repayment period. Borrowers are allowed to convert their debt at the closing of or during the draw period. Some lenders may also allow you to switch back to a variable rate.
Use Existing Home Equity
If you already own a home, you could leverage your home equity to pay for a manufactured home to use as a second home or rental property.
Equity is the part of your homes value that youve paid off. If your home is worth $300,000 but you owe only $150,000, youd have $150,000 in equity.
You can borrow against your equity by getting:
- A cash-out refinance: This kind of loan replaces your existing mortgage with a larger one, generating extra cash. Its a good idea if you need a new primary mortgage and cash out for a big purchase
- A home equity loan or line of credit: With these loans youd keep your primary mortgage in place and add a second mortgage. Home equity loans provide a lump sum of cash home equity lines of credit let you borrow from your equity as needed
Since these kinds of loans are secured by your homes value, interest rates are competitive, especially if you have good credit and enough equity for your lenders loan-to-value rules.
But these loans also require a lien on your home which means you could lose the home if you fail to make payments.
What Is Rocket Mortgage
Rocket Mortgage® is an online mortgage experience and Americas largest mortgage lender1.
Rocket Mortgage® isnt a calculator its a way to get a mortgage. Just tell us about yourself, your home and your finances, and well give you real interest rates and numbers not just our best guess.
Then, Rocket Mortgage® will guide you through the mortgage process, from getting approved to closing to managing your payments. That expert guidance is a big reason why weve won so many awards for customer satisfaction.
Why Is It Harder To Get A Loan For A Manufactured Home
Why are Loans for Manufactured Homes so Difficult to Find? This is due to the fact that some manufactured homes may age more quickly than their site-built counterparts. It can also be because manufactured homes may not be as profitable as other types of home construction for certain lenders.
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Modular And Manufactured Homes Vs Mobile Homes
There are different construction methods and standards when it comes to mobile, modular, and manufactured homes.
Mobile Home Vs. Manufactured Home
The term trailer no longer accurately represents what manufactured homes are. In 1976 Congress authorized the National Manufactured Housing Construction and Safety Standards Act which authorized HUD to establish construction standards for manufactured homes. Today we refer to mobile homes or trailers as manufactured homes.
Modular Home Vs. Mobile Home
Mobile homes or trailers built prior to June 15, 1976, would not likely pass todays building standards. Todays modern modular home is built for longevity. Congress intended to protect the quality, fire resistance, energy efficiency, durability, safety and affordability of manufactured homes by setting a standard to follow for the industry. It established uniform performance-based construction standards and encouraged cost-effective and innovative construction techniques. HUD also established a program to provide resolution of disputes between consumers, retailers and manufacturers.
Customer Service At Major Lenders
|CFPB Complaints, 20214|
Federal regulators at the Consumer Financial Protection Bureau maintain a public, online database of consumer complaints against mortgage lenders. And in it, borrowers filed over 300 complaints against Rocket Mortgage in 2021. Still, this figure represents a relatively small number of negative experiences compared to the amount of home purchase and home refinance loans it underwrote that year.
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Is Rocket Mortgage Right For You
At the end of the day, Rocket Mortgage is a reliable option for borrowers who dont want to undertake the typical mortgage application process.
f youd prefer to stay home and apply for home financing online, this streamlined lender offers you flexibility and convenience.
Also, its wide range of mortgage products means that FHA, VA, and USDA loan seekers are welcome to apply via Rocket Mortgage.
If you do decide to apply for a mortgage or mortgage refinancing loan via rocket mortgage, head to their website and begin the process. You can access the application directly from the homepage.
If you want to compare Rocket Mortgage against other lenders, make sure to check out some of the other reviews posted on our website. We cover a broad range of mortgage lenders in the United States.
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Why Live At Eastview
Welcome to Eastview, a unique manufactured home community designed for the convenience of our residents. Our experienced and professional management staff handles the day-to-day responsibilities of the community, so you can enjoy the beautifully landscaped grounds and contemporary amenities planned with your family in mind. Located just 1 mile from Downtown Gillette, our community sits inside of a quality school district. Around your home, there are many things to do such as shopping at Walmart, Home Depot, and Marshalls, as well as dining out at favorite local restaurants like Pizza Carrello and The Coop. Nearby, there are fun activities and attractions such as Campbell County Museum, Dalbey Memorial Park, and Frontier Relics Museum for friends and family to enjoy. In the city, there is local transportation such as buses for your convenience of getting around. Also bring your furry family members with you because we are a pet-friendly community. Let us help you make your dream of home ownership a reality within our community!
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Fannie Mae And Freddie Mac
Traditional mortgage sources Fannie Mae and Freddie Mac both offer specialized manufactured home loans if you can meet their criteria.
Fannie Mae offers the MH Advantage® program for financing manufactured home purchases with 30-year financing and down payments as low as 3%. The drawback, however, is that your manufactured home must meet similar criteria as traditional site-built homes, such as construction, architectural and energy efficiency standards. You may also have to install a driveway and connecting sidewalk in order to qualify for the program.
Freddie Mac can finance manufactured homes through their Home Possible® program. Like MH Advantage, it offers down payments of 3%, and qualified borrowers can choose between a 15-, 20- or 30-year fixed-rate mortgage. Home Possible also allows gift money or funds to help cover your down payment.
Real Property Versus Personal Property
Real property must include land, along with property that cant be quickly or easily removed from the land things like a house, an in-ground pool, or a paved driveway.
Property that can be moved and used elsewhere a car, a boat, or a true mobile home, for example is considered personal property.
How can you learn whether an existing manufactured home is real or personal property? By finding out how the current owner pays taxes.
If the taxes go to the DMV, the home is considered personal property. In addition, a home on leased land wont be considered real property. If youre buying a new home from a dealer, youll need to place the home on land you own or land youre buying.
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