It’s pretty well known that the greatest challenge for first time home buyers is coming up with enough money for the down payment and closing costs. But it can also be true that the local housing market puts home ownership out of reach for many simply because the median price of homes in the area is too high for some first time home buyers.
FHA loans can help first time buyers because the down payment requirement is only 3.5 percent of the sales price of the home and with a financial gift or grant almost all of the
down payment and associated closing costs can be paid for and the buyers only have to have $500 of their own funds in the transaction. VA loans are also another option but those programs are reserved for veterans and others who have served or active duty. USDA loans can help but they’re reserved for rural and semi-rural areas. Still, that doesn’t address the affordability issue.
Getting financing for a manufactured home is just as easy as with any other property type. The most common mortgage for a manufactured home is the FHA program. Buyers can take advantage of the easy qualifying that FHA offers as well as the reduced amount of funds needed in order to buy. The 3.5% down payment is much lower than a 20% down payment for a conventional loan with no mortgage insurance. For those who want to buy
but for right now the homes in their area are just out of reach, a manufactured home is a great option for first time buyers.
What many leave out in the equation is a manufactured home. Manufactured housing has come a long way over the years and is much more affordable and should be on the
short list of home buying options for first time buyers. Manufactured housing today looks almost identical to any other type of home and due to their lower cost they can turn renters into owners.
Owning and financing a manufactured home provides home owners all the benefits of home ownership as with any other property. The mortgage interest on a manufactured home loan is tax deductible as with any other mortgage. Buyers can choose from a fixed rate loan with loan terms ranging from 15 to 30 years. Adjustable rate loans and hybrid mortgages can also be an option.