Major Considerations in Buying a Mobile Home

A mobile or manufactured home is significantly different from a traditional bricks and mortar house. You may choose from several categories of manufactured homes including: caravans, motor homes or park homes. It is crucial to consider the viability of the idea before deciding to purchase a mobile home suited to your needs.

Selecting the Home

If you opt to live in a park home, you can buy a modular home installed in the park. You may buy a modular home directly from the manufacturer, as well.  In general, parks do not offer pitches for homeowners to place their homes. You will need to rent or buy a piece of land elsewhere for positioning your home. Additionally, various dealers offer caravans and motor homes for sale.

Securing a Loan

Most banks and building societies do not offer mortgages on manufactured homes.The worth of these homes also depreciates over time. However, you may take out a conventional loan. Since interest rates are higher for these loans, it is advisable that you have some cash put aside. You can use a part of your savings as a deposit to ensure that the loaned amount is small. This will make your loan payments reasonable.

Renting a Pitch

If you rent the land for parking your home, you will need to pay pitch fees to the owner of the land. Pitch fees are generally moderate. There are laws, which regulate the renting of pitches. These laws ensure the mobile home owner certain privileges such as protection from eviction from the site. If you buy a new manufactured home, you can negotiate the terms in the contract with the owner of the site. On the other hand, if you purchase an old home, you will have to accept the terms outlined in the contract given to the previous owner of the home. This implies that you will not be able to change any terms you do not like. Neither will the owner be able to modify the terms. This prevents the owner from raising the pitch fees.

Restrictions for the Homeowner

Manufactured homeowners who hire a pitch for installing their homes do not enjoy certain privileges that conventional homeowners do. You may not sell your home to an individual without the approval of the owner of the site of your home. Besides, you need to pay 10% of the sale price to the site owner.

Deciding on an Escrow Account after a Refinance

The monthly mortgage dues of a borrower consist of homeowner’s insurance, private mortgage insurance and property taxes apart from the mortgage principal and interest payments. Lenders require that you pay the insurance amounts and the property taxes in an escrow account held by a third party called escrow services....

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HUD Guidelines for Manufactured Homes

A set of directives prepared by the Department of Housing and Urban Development (HUD) may have served to enhance the quality of manufactured homes. Homebuyers are quite willing to apply for mortgages for this highly affordable quality of housing. Here are the key guiding principles put forward by the...

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