Why is a site-built home easier to finance than a mobile home?

A retired couple looking forward to simplifying and downsizing, a new family hoping to buy a first home or a single person trying to escape monthly rent payments are all potential buyers of either a site-built or a mobile home. A site-built home is valued as real estate from all different considerations: the builder, the lender, the appraiser, the inspector and the owner. A mobile home can be more difficult to categorize. Who owns the land on which the mobile home will be placed? When was the mobile home built? What codes were followed during the construction of the home? Will the home be attached to the land? What is the size of the mobile home? These and other questions have to be answered to determine if the home can be considered for a real estate loan, a chattel loan or even an auto loan.

“Real” real estate

Because of the clear, general acceptance of a site-built home as real estate, it presents as better collateral to secure the loan. That makes it less risky. This characteristic can result in a lower interest rate that can lead to a lower monthly payment and to more lenders willing to make a loan for a conventional home. For your convenience, many builders collaborate with a lender to make the loan application process to secure financing as easy for you as possible. Be sure and ask your builder what lending company they like to work with. An expert in the home mortgage field will be able to help you understand the requirements of all the real estate financing options available to you.

Build your dream home

Mobile or manufactured homes are not the only option for affordable home ownership in Wise, Parker and Johnson Counties. A site-built home can give you more flexibility with the layout of the home and give you the opportunity to know your builder. You may be able to work with the builder on home features and customized highlights to get just the house you have dreamed of and are investing in. Because there are more willing lenders in the conventional home market, you can do a little shopping around and you may even be able to save yourself money with a lower mortgage interest rate.

No matter what stage of life you are in, a real home that is built onsite by your chosen builder and not a mobile home may be just the answer to your affordable-housing need.