Residents in Tallahassee, Florida, looking for affordable housing solutions may want to consider a prefabricated home such as a manufactured or modular home, often referred to collectively as mobile homes. Prefabricated homes are built primarily in a factory-type setting and then moved to the foundation where they will be placed. Modular homes are set on a permanent foundation or slab, whereas manufactured homes may not be. Also, any final construction, including wiring for electricity or setting up sewer, is completed once these mobile homes are moved to their location.
Basically, mobile home loans are available to get you into an affordable home of your own.
What Are the Types of Mobile Homes in Tallahassee?
Mobile home is an all-encompassing term that covers single-, double-, and multi-wide prefabricated homes. A single-wide home is neither wider than 18 feet nor longer than 90 feet, while a double-wide home is a minimum of 20 feet wide and a maximum of 90 feet long. That said, all mobile homes, to be eligible for financing, must have been manufactured after June 14, 1976. This was when the Department of Housing and Urban Development updated the construction codes to make mobile homes safer. Today's prefabricated homes offer stylish exteriors and modern appliances and fixtures, making them nearly indiscernible from traditional site-built homes.
How Do Mobile Home Loans Differ From Conventional Loans?
A traditional site-built home qualifies for a conventional mortgage, often up to 30 years. Conventional mortgage loans automatically cover the house, parcel of land, and any outbuildings located on the land. In contrast, mobile home loans offer more flexibility and can cover just the home or include other features such as the land, garages, basements, and driveways.
Loans for mobile homes are also often shorter in terms of length and amounts. Interest rates can be slightly higher on a mobile home loan, compared to a traditional mortgage, but you should also have lower loan amounts which keep the payments afforable.
What Are Financing Options for Mobile Homes in Tallahassee?
Mobile home loans vary depending on location and personal situations. You can apply for a mobile home loan for homes on leased land, on land you own, or with a parcel of land. You can also get a mobile home loan that covers only the mobile home itself or one that covers improvements such as a garage or deck.
A chattel loan is a loan that covers only the mobile home itself. This type of loan is used to cover a moveable piece of personal property, including large machinery, vehicles, and mobile homes. In a chattel loan, the property acts as the collateral for the loan. Chattel loans work well for mobile homes sited in a mobile home park, on leased land, or on land you already own.
That said, if you default on a chattel loan, the lender can repossess the home, much like they would a car if you defaulted on your vehicle loan. A chattel loan also remains with the house if you decide to relocate it at any time. Chattel loans are often limited to 25 years or less, depending on the age and value of the mobile home.
The Federal Housing Administration backs FHA loans, providing lenders with more security when it comes to financing their mobile homes. FHA loans are also beneficial to borrowers because these loans require a much lower down payment, often only 3.5%. An FHA loan may stipulate the borrower carries mortgage insurance to protect the lender from potential loss. In addition, an FHA loan can only be used to cover both the home and land combined.
Further, you apply for an FHA loan through an approved private lender, like your local bank or other financial institutions. FHA loans on mobile homes can have terms of up to 20 years. And if you add the land, that term may be extended to 25 years. You can borrow for up to 30 years if your mobile home is placed on a permanent foundation, much like with a conventional mortgage.
Another government-backed option for your mobile home loan in Tallahassee is a VA loan. The Office of Veteran's Affairs backs these loans as a way to honor those who served in the United States military. VA loans provide an affordable option and are often easier to secure. VA loan demands the following, and more:
- The home serves as the veteran's primary residence.
- The private lender sets interest rates.
- A down payment of 5%.
- A VA funding fee is added. This required fee helps offset the cost of the program and can be waived for a disabled veteran.
- No monthly mortgage insurance requirement.
- A minimum credit score of 620 for borrowers. If it's below that threshold, Cascade Financial Services will try to work with you.
- No bankruptcies or foreclosure within the past two years of application.
- VA assigns the home appraiser.
You can qualify for a VA loan if you've served the following:
- Ninety days during wartime.
- One hundred and eighty-one continuous days during peacetime.
- Six years in the National Guard.
You may also qualify if your spouse died during service to the military. Applicants need to procure a Certificate of Eligibility from the VA. You can then present this certificate to the authorized private lender of your choice. Information about the certificate, and additional information regarding VA loans, can be found on the VA website.
When you're ready to finance your mobile home in Tallahassee, reach out to the knowledgeable team at Cascade Financial Services. You can contact us via our secure online messaging system, call us at 877-869-7082, or even start the prequalification process from home.