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Manufactured Home Mortgage Loans Overview

Todays Date: December 19, 2018

Today, more and more people are now purchasing mobile homes or manufactured homes. Besides, by purchasing ready-made homes, you will save money, and time consumed on construction. These two reasons are why increasing numbers of people are now purchasing mobile or manufactured homes even if they are not really going to use its mobile features.

People say mobile homes lose value over time, therefore they say it wouldn’t be wise to take out a mortgage or loan against a mobile home. What everyone really wants to know is if it’s actually a decent idea to invest in a mobile home.

The answer to this question depends on how you get the home situated. It is a fact that mobile homes do depreciate over time that may reach a point where it will be impossible to take a loan, mortgage or home equity loan against a the mobile or manufactured home. However, you have to remember that there are some manufactured or mobile homes that do appreciate in value over time.

These homes are almost always on fixed foundations. Manufactured homes not on fixed foundations are the ones that will depreciate. So you simply can situate your home on a fixed foundation to help appreciate its value.

That means after a few years of on time mortgage payments the equity in your home will increase.

You need to understand that the manufactured home equity is quite different from a regular home equity loan program. The equity on a mobile home is equal to the numerical difference between the value of the mortgage and the appraisal value of the home.

For over a period of time of paying your mortgage on a timely basis, you will see that the equity will build up. You need to understand that the equity is a financial asset which you can use as collateral when taking out loans in the future. For manufactured or mobile home equity, you will see that the equity loans can be as high as 85% or even 100% of the total value of the equity on the home. This means that you can have access to most of your home’s equity.

This does depend on something however. That thing is your credit score of course. If your score is good you will get a larger portion based on your equity. It also is dependent upon the policies of your lender.

To take a loan with your home as collateral while you’re paying a mortgage, it is recommended that you get a home equity loan. It is much more quick and easy than other loans if your credit score is good and your mortgage is always up to date.

These are the obvious reasons to keep in mind when you take a loan on your manufactured home.

It’s important than your manufactured home will appreciate in value. As stated earlier, placing your manufactured home on a fixed foundation will substantially increase the value and equity of your home so long as your mortgage payments are on time. That way, when it comes time to take out your home equity lone it’ll be far easier to access funds equal to the equity of your home.

For more info about manufactured home mortgage loan, please visit http://manufacturedhomeloan.org/

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