First Time Manufactured Homebuyer
March 30th, 2021
If you’re a first-time homebuyer, navigating this process may seem daunting at first, especially if you’re considering purchasing a manufactured home.
Purchasing a home involves many different steps including the need for financing. However, first-time buyers may also enjoy a few extra benefits.
Manufactured homes – also known as mobile homes – are types of construction that have been built at a different location than where they will ultimately reside. Usually, the manufacturer will construct these homes in a warehouse and then transport and place them on a piece of land you own or rent, where they can remain forever.
Modern manufactured homes have become much better than when they were first built way, way back in the 1870s – when the entire purpose of these homes was to be transportable to where the owner would eventually put down roots. Today, manufactured homes are stylish, comfortable, and include all the amenities you need to live well.
Advantages for First-Time Buyers
If you’re a first-time homebuyer, you may have advantages that are designed to make it easier for you to purchase and own your home. From special state programs to tax breaks, and federally-backed loans, there are a number of financing options available.
First, you need to qualify as a first-time buyer, meaning you have to meet certain criteria.
If you qualify, your next question is about the type of home you wish to buy. To get the advantages of a first-time homebuyer, the manufactured home must be eligible as real estate, which not all manufactured or mobile homes are.
It all comes down to the specifications of the manufactured home. If it is at least 400 square feet, placed on a permanent foundation, and can be taxed as real estate, then it may be considered real estate – and you may be able to apply for conventional or government-backed financing.
Certain mobile homes come with wheels and may be considered a vehicle – not real estate – with annual fees to the DMV. Home loans may not apply to these types of manufactured homes.
Getting a Manufactured Home Loan
Even if the manufactured home isn’t eligible for conventional or federally-backed home loans, you may qualify for financing that is specifically designed to purchase a manufactured home.
Since manufactured homes usually cost less than traditionally-built homes, home financing may be beneficial for younger buyers and those with fewer financial opportunities to cover larger loan payments. And a manufactured home loan may offer an opportunity to build a strong credit history, as you may be able to more easily manage monthly payments.
Can We Help?
If you’re looking for manufactured home financing opportunities, but still aren’t sure if you qualify or what this involves, the Community West Bank team would be happy to speak with you.
We specialize in manufactured home loans in coastal California. If you’re interested in a mobile home and need financing, contact us right away. We’re happy to discuss your options and ensure you get the best loan for your needs and budget.