Manufactured homes are factory built homes that can be transported to any location needed on their own chassis and wheels.

For a finance institution to finance a manufactured home, it has to be doublewide and on based a permanent foundation on land owned by the borrower. Sometimes, manufactured homes are financed with a retail installment contract that is provided by the retailer who is selling the home. Although the lender may easily grant a conventional mortgage for manufactured homes, they actually prefer giving loans for homes placed on a permanent foundation, as the risks involved in such cases are lower.

It should be remembered that manufactured homes are eligible for FHA and VA loans, so it is wise to apply for them. There are federal standards that help to regulate the quality of the manufactured home, and these standards are in turn based on the strength, durability, fire resistance, energy efficiency, transportability, and quality of the homes. It is only based on the guarantee of these standards that manufacturers readily offer a warranty to cover the home and it’s systems during the stated warranty period.

Like all other home loans, this loan requires that you have a good credit. The better your credit is, the easier it is for you to get the loan. You have to also be ready to make a down payment when applying for the loan which may be as little as 5% of the loan amount as down payment, but the larger the down payment you can make, the lower your corresponding mobile home loan interest rates will be. Unlike many interest rates, the rates of mobile home loans remain stable with no fluctuations.

Modular homes are made of units called modules made at manufacturing centers away from their actual building sites. The finished home is then shipped to the site by flat bed truck and lowered and attached to a preset foundation.

Small modular homes have a lot of advantages. Firstly they are easy to manufacture. They are easily assembled on the shop floor in an assembly line process. They are also easily transported to the site by truck where a crane can easily set the structure onto a preset foundation.

There are many time and cost savings in modular construction. The manufacturer obtains discounts on raw materials due to bulk purchases from suppliers. They also incur less labor costs compared to the labor costs of a site-built house. There is a great deal of efficiency as the assembly line is more efficient than a number of construction workers. Building material is also safe from inclement weather and robbery. Much less waste is generated in small modular home construction than in traditional methods.

When a manufacturer is building without a backlog, it usually delivers a house five weeks after the customer has finalized the plan and obtained permits and finances. The builder starts building the foundation while the house is being manufactured in the factory. In the case of a small, uncomplicated house requiring less onsite construction, it will be ready in three weeks. Combining building and manufacturing time, a customer can hope to move into his dream home in eight weeks’ time.

Modular homes also attract easy finance. Most customers save money constructing homes rather than purchasing them. The shorter construction time means that there are fewer monthly interest payments required to service the loan. Lenders like modular homes because customers are unlikely to incur large cost over runs or run late in building. Quality is predictable. Construction inspection is also easy as the modular home is fully finished even at the first inspection.

Modular homes are time- and cost-saving, aesthetically pleasing and quality-conscious, and an excellent alternative to stick-built houses.