For a long time, a manufactured home was known as a “mobile home,” and to this day many people refer to it as such. Mobile homes are built in a large manufacturing plant. In this controlled environment, builders are required to build each home in accordance with the strict and rigorous Housing and Urban Development Code. This code was created by the Federal Government to regulate its design, structure and safety.

For many families, the uncommon affordability of a manufactured home makes ownership a more likely reality if they are unable to break into the conventionally built home market. The low cost of entry to purchase a manufactured home has led to a dramatic increase in the growth of the factory-built home building industry. It has also allowed many families who could not otherwise afford such a purchase to enter the home buying market.

Mobile homes make up a good 10% of the US real estate market, allowing millions of people the opportunity to finance and own their own home. Mobile homes built these days offer high-quality construction, great value, and advanced features that homebuyers can find in more traditional construction offerings.

While the popularity of factory-produced homes has grown in popularity, home lenders and mortgage brokers have entered the mobile home financing market. This doesn’t mean that every bank or broker will finance a manufactured home, but if you do your homework, it’s not too difficult to find a lender who will. The main thing most lenders look for is whether the mobile home in question can be classified as real estate. To qualify generally depends on the type of foundation and substructure that the house has.

The one thing you will notice if you find a local lender or mortgage broker to finance a mobile phone is that there are many similarities and some differences to financing a house built with stakes. In many cases, financing a mobile home on land will require a minimum down payment of 5 percent of the purchase price. The payment terms will also finance the balance of the loan over a period of 20 or 30 years.

For a manufactured or mobile home located in a mobile home park or on leased land, a chattel mortgage might be the way to go. This type of loan does not take into account the value of the land on which the house will stand. It only finances the house itself, leaving the owner the option to move the house whenever they want.

Another option for mobile home buyers is to get their new home financed through the manufacturer. In many cases, the manufacturer can offer loan financing terms that are competitive with major lenders. They may also include in the loan the cost of moving the house from the manufacturing plant to the owner’s lot.

If you already own a mobile or manufactured home, you also have the option of refinancing your current mortgage, just like with a more conventional mortgage. With today’s low rates, this may be something to consider if you want a lower monthly payment. You can also use this type of loan to extract extra money from any equity in your home. This money can be used to pay off other debts, make home improvements, or anything else you might need.

Although mobile home financing tends to be a bit different from mortgages for traditionally built homes, there are several options you can choose from. While many lenders offer different loan options for manufactured homes, it can be more difficult to secure financing for a mobile home. This doesn’t mean you shouldn’t try because you’ll likely find a lender willing to make your dream of homeownership a reality.