Today’s manufactured homes bear little resemblance to yesterday’s air-slipping tin cans on wheels. With improved quality and material, stitched together seamlessly in double-wide sections, they can be indistinguishable from site-built, conventional homes.

But financing a manufactured home still can be unconventional.

‘Mobile’ means higher rates
In financing, the key is the word “mobile.” The less mobile a manufactured home is, the better the financing deal a consumer can get.

Historically, manufactured homes have been financed as personal property, resulting in personal loans that often require a 10 percent down payment, with the remainder financed over 10 to 15 years. Interest rates are higher than mortgages, resembling the rates charged on car and boat loans. However, whether the loan is called a mortgage or not, if it is used to secure your principal home, the interest paid is generally tax-deductible.

Though these loans still are the most common, the changes in the industry have attracted additional lenders and types of loans. Many manufactured homes now require only 5 percent down and finance the remainder over 20 to 30 years.

If the home is immobile and if the owner of the home also owns the underlying land, then the loan is likely to be viewed as a mortgage, gaining vital tax benefits.

At Sean Clift Mortgage we are fully versed and up-to-date on the latest standards and practices regarding Manufactured and Mobile homes and will help get you financed at the best rates possible.