Why A Manufactured Home Is The Right Choice In 2019
Manufactured homes have a unique lending process. With big changes in the manufactured homes market, loans are evolving with the trend. The booming interest surrounding manufactured homes has left lenders rushing to keep up. Luckily, the growing trend is making it easier for manufactured homes to find cost-effective coverage. Here are a few ways the housing market and home-finance companies are changing.
Most manufactured homes are unable to get traditional mortgages because they are considered personal instead of real property because they are not attached to land. Therefore, chattel loans are becoming more popular for those with manufactured homes.
A Chattel loan is a secured debt like an auto loan and is titled in public records that the lender holds until the debt is paid. Homeowners who borrow this way will get a better mortgage rate that is closer to traditional homes. Chattel loans also are not as long as mortgages, usually only lasting 10-20 years.
The effect of a rise in manufactured homes
Manufactured homes are beginning to attract developers for many reasons. One reason it has peaked people’s interest is that it is an easy and fast way to replace homes that have been damaged in fires and natural disasters.
Another reason manufactured homes are becoming more popular is because they are giving lower income households or retirees a chance to be able to find more affordable housing and making it easier for them to buy instead of rent. With the rise in popularity of manufactured homes, it is likely that loan rates will decrease, and the diversity of manufactured home loans will increase.
As the standards increase for manufactured homes it will also allow for an expansion in the market which will lead to more manufactured homes getting loan coverage.
If you have questions about manufactured homes, the experts at Townsend Home Sales can give you answers.
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