How to Buy Your First Manufactured Home
Buying a manufactured home is something more Americans than ever are considering for a variety of reasons, the most popular reason being the significantly lower cost of buying manufactured homes. Whether for your very first home or because you’re downsizing, this can be a great option.
It can be substantially less money to buy a manufactured home versus a typical new or resale home without sacrificing on quality finishes.
The lower cost of this home-buying option can mean several benefits, including:
- Qualify for Less – Being able to qualify to buy a home with a smaller down payment and a smaller income. This could be the ticket to getting out of a rental and putting your money into your own pocket that much sooner.
- More Disposable Income – Having a lower mortgage payment means more disposable income for many. A manufactured home can help new homeowners avoid being “house poor”.
- Pay Off Your Mortgage Faster – The lower cost can mean the chance of being mortgage-free a lot sooner than with a home three or four times as expensive which will assuredly mean a 25 to 30-year mortgage.
Manufactured home communities can also be a great selling point, as they are often filled with like-minded individuals. There are family-minded communities and there are adult lifestyle communities, too.
Regardless of what your reasons are for considering this home buying option, here are some tips for how to buy a manufactured home.
Consider Financing, Credit, Savings, etc.
While you’ll have a lot less home to pay for with a manufactured home, you’ll still need your financial ducks lined up in a row, so to speak. Having information about your income, your expenses, and copies of taxes will help you apply for financing. The bigger the down payment, the more options you’ll have, too.
Many financial experts recommend setting aside several months of expenses, too, in an interest-bearing account. This shows the lender that you’re not only serious about becoming a homeowner, but also that you have a rainy-day fund set aside, too.
If you haven’t already checked your credit score and credit history, it’s a good idea to do so ahead of time. This way, if there are any errors or problems that need to be addressed, you’ll have time to do that prior to applying to buy a home.
Many financial experts recommend striving to improve your credit a year or so before you apply to buy a home. The better you appear ‘on paper’ the more chances of not only qualifying for a home loan, but the more likely you’ll be to get approved with a favorable interest rate.
Can I Get Approved with Poor Credit?
Not only might it be possible to get approved for a manufactured home with bruised credit, but there’s a greater chance of home ownership in this case versus going to a traditional bank for a mortgage. In-house financing programs with manufactured home communities are increasingly popular.
For those who are not able to qualify immediately, there may also be the opportunity to rent a manufactured home for now, while working on your financials in order to qualify to buy that same rental home later on.
Not only will getting prequalified for a manufactured home help you get the ball rolling, but you’ll be armed with knowledge about being approved ahead of time, which means that you’ll know what you are facing before you get your hopes up on a specific property listing.
Some manufactured home communities even have incentives for choosing them. Look at your options, read some reviews of the community and then consider your financials before you apply to maximize your chances of not only getting approved, but also of being thrilled with your new home.
Check out some great manufactured homes for sale available with HomeFirst.