If you want to become a homeowner, but cannot afford to purchase a traditional home, a mobile home may be a good solution for you. Mobile, or manufactured, homes are affordable living solutions that are built in factories. They can be placed in a mobile home park or on land that is leased. In this case, the owners typically rent the space, but own their home. Landowners can also purchase manufactured homes and place them on their land. Mobile homes are compact, affordable and high quality living solutions.
The majority of mobile home owners are between the ages of 18 and 29. They are also common among retirees. Manufactured homes allow these individuals to own a home and live independently. More than 17 million Americans lived in manufactured housing in 2015.
There are many different ways to purchase and own a mobile home, and this article will explain how it works. This article will explore the benefits of owning a mobile home, how to finance your mobile home, how chattel loans work and the best financing options in Michigan.
Benefits of a Mobile Home
Affordability is a huge advantage to buying a manufactured home. Purchasing a mobile home often allows you to own your home much quicker than purchasing a traditional home. They are a lower-cost per square foot, so you can get more for your money. The value of a manufactured home is what draws a lot of individuals to this housing option.
There is less commitment. Manufactured homes are not permanently located on any land. You can own land and utilize a mobile home even if you intend to build a house later. You can also lease or purchase a manufactured home on land owned by someone else. This flexibility cannot be achieved when building or buying a traditional house.
Manufactured homes are built in factory environments. This is a major benefit because weather does not delay construction, you do not have to work with subcontractors and they can be built to more consistent standards. The controlled environment means you know exactly what you are getting and protects you from costs that may arise during a traditional home build.
Types of Mobile Homes
- Single Wide: These mobile homes are the smallest option. They have a length of around 90 feet and a width of 18 feet or less. Single wide mobile homes are a good option for couples or singles.
- Double Wide: This type of mobile home is still 90 feet long but they have a width of 20 feet or more. Double wide units are often transported in two parts. A double wide mobile home may be right for you if you live with a family.
Cedar Springs Mobile Estate offers homes for lease and homes for sale. If you decide to purchase a manufactured home, you will save $100 to $300 per month compared to renting. The down payment is around the same amount as the move-in cost for a rental home. Lenders are happy to work with buyers at all income levels and credit scores. There are plenty of financing options. Purchasing a mobile home may be a more realistic goal than you once thought. Although mobile homes are more affordable than traditional housing, they still cost more than most people can pay out of pocket.
Ways to Finance a Mobile Home
- FHA Loans: This is a loan program through the Federal Housing Administration.
- Fannie Mae: For this type of loan, you must own the land the mobile home will be placed on. The title of the land will be collateral for financing.
- Freddie Mac: Mobile homes typically must be permanently affixed to land to qualify for this type of loan.
- Chattel Loans: This is a special type of personal property loan that can be used for mobile homes. You can use a chattel loan even if you do not own the land.
What is a Chattel Loan?
Chattel Loans are usually established for homes in manufactured home communities. The loan is made between a borrower and creditor made to purchase or refinance a manufactured home that is not permanently attached to land. While most home loans exclude manufactured or mobile homes, a chattel loan is specific to movable property. Mobile homes benefit from chattel mortgages, but other properties included are vehicles, airplanes, boats and farm equipment. With a chattel loan, you can purchase a manufactured or mobile home and typically pay less than you would spend on rent in the time it takes to own the home.
Benefits of a Chattel Loan
Monthly payments can be lower than a traditional mortgage, even though chattel loans often have a higher interest rate. Chattel loans usually have a significantly lower down payment than traditional mortgages, which correlates to the lower overall cost. Interest charged on a chattel loan is tax deductible. Mobile home buyers can use a chattel loan and move without interfering with the loan. If you purchase your manufactured home with a chattel loan, you can move the home. This might happen in a situation where the home is placed on leased land. Chattel loans often have shorter terms than a traditional mortgage, which allows you to pay off debt quicker and own your home.
How can I get a Chattel Loan?
An individual with a stable job and fair to poor credit is typically able to get a chattel loan. Lenders partnered with Cedar Springs Mobile Estates are available to help those with less desirable credit scores. They work with all income levels and credit scores to establish the best financing options for each individual circumstance. Cedar Springs Mobile Estates offer the best chattel financing options, as their partnered lenders know how to work with buyers from diverse financial backgrounds.
Cedar Springs Mobile Estates
If you are looking for an inexpensive home in Michigan, Cedar Springs Mobile Estates has a solution for you. With an average cost that is one-third of a traditionally built home, and reasonable pricing, these manufactured homes are perfect for new homeowners. Manufactured homes at Cedar Springs Mobile Estates range from 2 Bedroom/1 Bath single-wide homes to 4 Bedroom/2 Bath double-wide homes. The homes range in price from $5,000 to $35,000, and amenities include a pet-friendly community, stone fireplaces, oak kitchens, bathroom suites and basketball courts. There is a vast variety in style options, so you can find the right manufactured home for you. You can easily and quickly become a homeowner through Cedar Springs Mobile Estates’ associated lenders. There are also leasing options if you are not looking to purchase and own a home.
Being just twenty minutes from Grand Rapids, residents of Cedar Springs have access to plenty of amenities. The community is just a minute away from Downtown Cedar Springs and one mile away from the Muskegon exit off US-131. This allows for easy commutes to Grand Rapids or other areas. However, homes in Cedar Springs are much more affordable than those in Grand Rapids. Look no further than Cedar Springs Mobile Estates for an affordable and convenient community to live in.
Overall, manufactured homes are a convenient and affordable living solution for many types of people. Chattel loans are a simple way to work towards owning your home. Cedar Springs Mobile Estates offers buying and leasing options that are designed to work for many people, regardless of financial background. The manufactured homes for sale give you excellent value for your money. Get started on your pre-qualification form or application today.