What You Need to Know Before Refinancing a Modular Home or Mobile Home

abumurad By abumurad, 3rd Nov 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/dwux1avf/
Posted in Wikinut>Guides>Property & Real Estate>Selling A Home

Mobile homes, however, are a different story. While there are some mortgage programs available for mobile home purchases, they do not represent the most common type of mobile home financing. Most people who finance mobile homes do so with a personal loan rather than any type of true mortgage loan product.

Modular Home How-To

If you live in a modular home, you might think that refinancing is not something you will be able to do. While the guidelines that impact mobile home refinancing are different from those for traditional homes, it is not impossible to successfully refinance this type of home.

Mobile Home Versus Modular Homes

Mobile homes and modular homes are two different things. True mobile homes, sometimes referred to as manufactured homes, or trailers, are completely build in a factory. They are steel frame structures that are fully assembled before being transferred to the site where they will be used as dwellings. They are transported via truck, and can be relocated if the owner decides to move to a different plot of land. These types of homes decrease in value over time.

Rather than being created from the same types of materials used in motor homes, modular homes are made from the same raw materials as traditional houses. The construction process for modular homes begins in a factory, but the structures are not completed prior to being transported to the site where they will be erected. Modular homes are partially completed, then transported to the home site, set up, and then construction is completed.

Some completed modular homes resemble mobile homes, and others are virtually indistinguishable from traditional homes build entirely on site. Those who assemble modular homes must adhere to the same guidelines and building codes that apply to new construction. Well built modular homes don't necessarily decrease in value as time goes by. Conversely, a well built modular home can appreciate and depreciate based on market conditions, just like any traditional home.

Refinancing Considerations for Modular Homes and Mobile Homes

The steps you need to take to refinance your modular or mobile homes are largely dependent on the type of financing you currently have. Modular homes are usually purchased with a traditional mortgage loan, and are eligible for most of the available refinancing programs.

When researching options for modular home refinances, it's a good idea to speak with several different mortgage lenders. It is probably in your best interest to seek the assistance of a lender who is clear on the difference between modular and mobile homes. A mortgage professional who is knowledgeable about modular homes can be a great asset when it comes to identifying the best refinancing options for your situation.

There are opportunities to refinance mobile homes, but seeking help from a traditional mortgage lender isn't likely to result in a positive outcome. When you are looking for a way to refinance your mobile home, it's generally much more beneficial to seek assistance from a lender that specializes in financing and refinancing mobile home loans.

Tags

Mobile Home, Modular Home, Mortgage, Refinance

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author avatar abumurad
I am freelance writer specializing in financial topics and political commentary, gardening and ecology, psychology, and paranormal and New Age topics. My non-writing professional experience includes s

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author avatar Rose*
27th Dec 2013 (#)

Good advice here.

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