Once you’ve decided to buy a manufactured home, one of the first steps is finding funding for your purchase. Many people seek advice from the manufactured home salesperson, as many new home mobile home sales businesses can offer financing on the spot. Whether you go with a new manufactured home or a used home, you’ll be glad to know that because manufactured homes are much less expensive than traditional homes you’re monthly payment will be quite a bit lower.

One of the things that new manufactured home buyers need to understand is the different types of manufactured home loans available to them. The most important thing is the fact various mobile home loans will differ depending on the kind of structure you’re financing. A mobile home, for example, is treated the same as a car loan. In other words, there is no closing cost involved but you will need to pay transfer taxes and possess a title to the home.

You should keep in mind that car loans and manufactured home loans are much different in terms of their length, however. A typical car loan will last for 3 to 7 years in length.

In addition to the length of the loan’s terms on a manufactured home loan, interest rates and other details will differ from lender to lender. Information like credit scores and the amount being borrowed can affect these things and will vary from borrower to borrower as well.

All loans take credit and risk as factors in their approval and it may be more difficult to borrow for a mobile home than a modular home because the latter is more stationary and as such easier for a lender to repossess in the event of payment default. Since mobile homes decrease in value like motor vehicles, the age is also a factor not only for the repayment schedule but also the amount of the loan and the down payment requirement.

A lender of any type of loan goes through risk assessment before they approve a loan. Most lenders consider a mobile home loan much riskier than a traditional home loan or a modular home loan because a mobile home can be easily moved if you go into payment default.

One of the best ways to choosing manufactured home loans is to go to lenders with which you have experience. It is a good idea to begin with your own bank since they are more likely to provide you with the loan you need even if your credit history is not perfect. This is especially true if you choose the bank where you also do your banking because they can see your financial information and are in a better position to assess your payment history.

When you’re looking for a manufactured home loan, be sure you take the time to research thoroughly before you make a final decision. Talk with several lenders and obtain various interest rate quotes to ensure you’re getting the best rate possible.