How to Estimate Your New Manufactured Home Budget
Let’s assume that you have made or intend to make the decision to become a manufactured home owner, a decision that you are to be commended as I am sure that you are getting the home you desired and at a price that will match your pre-planning budget considerations. There are, however, some other considerations that will impact your budgeting as you move forward with the purchasing transaction.
While considering financial arrangements through your retailer/dealer, you should shop around for other loan possibilities. Investigate the financial arrangements that can be made through other sources, including finance companies, banks, credit unions, and savings and loan associations. Many of these organizations have manufactured home loan programs that may provide terms and rates that are better than those being offered through the retailer.
In some situations, the Federal Housing Authority (FHA), or the Veterans Administration (VA), will guarantee a loan for your new manufactured home. A federal loan such as VA or FHA may result in a lower interest rate and may dramatically reduce your monthly repayment obligation.
It is conceivable that after you have explored the financing options available, you’ll find that the program offered by the retailer/dealer will indeed be the best choice for your qualifications. Retailers often have working relationships with lenders who specialize only in manufactured home lending and may be able to overcome minor credit issues that an outside lender may not be willing to accept.
Be sure to check all financing arrangements available. Make certain the finance costs are clearly stipulated. Do not sign any contract until you understand exactly what you will receive and what it will cost. Do not sign any contract or agreement with blank spaces. Do not rely on any oral agreement. Have all terms put in writing and save a completed copy for your records.
For more information about financing your manufactured home purchase, I would suggest you review my blog postings on this web-site entitled:
“APPLYING FOR A MANUFACTURED HOME LOAN AND POSSIBLE COSTS AT CLOSING” and “MANUFACTURED HOME FINANCING TIPS.”
Ordinarily there will be no closing costs or attorney fees to pay in financing and insuring a home. Title searches are not required for a new manufactured home. However, if you are purchasing your own property on which to place your manufactured home, there may be closing costs involved. Also, you should have a title search performed to be certain the ownership of the land is clearly defined and there are no prior claims, or liens on it. Title insurance offers additional protection against unexpected claims.
Insurance (fire, theft, and physical damage) is required by the lending institutions and may be included in the financing package. Typically manufactured home loans are for terms of 15 to 30 years. During the entire term of the loan the borrower will be required to maintain physical damage (property-casualty) insurance on the manufactured home. Most lenders will allow the borrower to finance one to five years of insurance.
For more about manufactured home insurance, I would suggest that you read my blog posting entitled:
“MANUFACTURED HOME OWNER INSURANCE: WHAT YOU PROBABLY SHOULD KNOW.”
Properly estimating your new home budget requires that you not only consider the manufactured home purchase price, but also give close attention to the financing costs and insurance expenses. Knowledge of the options and choices available when financing and insuring a new manufactured home could have a positive impact upon your budget considerations, and in turn contribute to your enjoyment of your dream home.
