Although the American dream may be limited to a huge house in the suburbs, a more reality-based achievement is owning any home close to work and family. When homebuyers search for manufactured homes in Texas, they must also take mobile home financing into consideration. There may be several hurdles that must be faced to find the right property and financing opportunity, making that modern American dream come true.
Significant Down Payment Amount
A main hurdle affecting almost all mobile home financing applicants is down payment. Lenders are more wary about approving large loan amounts, requiring 20 percent or more just to start the financing process. Manufactured homes in Texas alone can be expensive, depending on the region and proximity to cities. Homebuyers may just need to save up more money for the down payment to avoid any loans with significantly high interest rates.
Mobile Home Financing and Land Ownership Concerns
Because most manufactured homes in Texas are mobile to a certain degree, homebuyers may face financing issues regarding structure or land. Ideally, buyers should own land, allowing them to finance only the physical structure itself. When buyers must finance both real estate components, pricing, down payment and interest rates might rise. It may be necessary to speak to several lenders and understand their perspective on land and structure. In most cases, the less money to borrow means an easier application process.
When buyers have low income, a cosigner is almost always necessary. Potential buyers should go online and try an income or mortgage calculator. This anonymous calculation gives them a ballpark idea of their financial needs. Being prepared at the lender is the key goal. If a cosigner is a known factor, buyers can find a suitable one to streamline the financing process.
Lenders may be concerned about a mobile home’s structural integrity. Be prepared for possible property inspections that may go above and beyond a normal house examination. If the structure is sound, these inspections are beneficial to both the buyers and lenders. No one wants a faulty property the moment they move in.
If homebuyers are concerned about their financial position, they can always speak to several lenders. With a number of different opinions regarding mobile home financing, homebuyers can make a smart decision about their next investment. These financing hurdles aren’t barriers, and can be defeated with a steady income and strong personal credit background.