There are many changes that are visible in the field of home loans for mobile homes. The trends in home loans favor the mobile home buyers these days, in contrast to the earlier times. About nine percent of Americans stay in mobile homes, which makes approximately 20 million of them. This is not a small figure. This concept has been recognized by many of the private and government aided financial institutions.
The very look of mobile homes has undergone a facelift. There has been a complete change in the material, the quality and the look of mobile homes. They have actually started bearing a resemblance to sit-built homes. These developments have given rise to new home loans for mobile homes.
Many new mobile home loan companies have come up with some unique packages that have been developed, keeping in mind the needs of the borrower.
Mobile homes have been treated as personal property for long. They were financed as a personal property that had a 10 percent down payment on it. The rest of the financing continued for about 15 to 20 years. These loans are not treated as mortgages and the interest paid is not tax-deductible.
The interest rates on the mobile home loans are comparatively higher. Most of the times, the lender charges a higher rate of interest on a loan, because of the lack of assets on the part of the borrower. The lenders also know that the mobile home owners are short of assets and live on a tight budget. Another important thing is that the mobile homes have a very high depreciating value.
Earlier there were many formalities that you were required to undergo, to get your mobile home loan sanctioned. With changing times, however, more lenders are entering the market of mobile home loans. And most of the new deals require just 5 percent as the down payment, whereas the rest of the re-payment can continue for 20-30 years.
There are more advantages for the people who own the land where their mobile home is placed. In such a case, the home loan is treated as a mortgage that provides vital tax-benefits to the borrowers.
Do your research before you apply for a mobile home loan . Look for all the options that you can obtain and see which the best deal is. There are new government ensured plans that have been made available to the mobile home buyers and the home loan borrowers. See if you are eligible for any of the new schemes and how they will be beneficial to you. Even the private mobile home loan lenders have some attractive offers for these loans.
Contact the mobile housing societies before you fix a place for your new home. There are chances that you might have to pay more or even less, depending upon the location of your mobile home. There are different guidelines for different housing societies and different states, as far as mobile homes are concerned.
Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. In her website Badcreditloanservices.com you will find more useful tips and interesting financial articles on this and many other related topics.