Manufactured home communities are becoming more and more popular because of their cost savings and fabulous amenities. In some ways, the process for buying a manufactured home is very similar to that of securing a traditional home. You have to get your finances in order, get the necessary documents and find the perfect loan to finance your new dream home. Use this list for guidance on what things you’ll need to get together before purchasing a manufactured home.
Finding the Right Loan
Loans for manufactured homes tend to work differently than loans for traditional housing, however, the process has some similarities. When you buy a manufactured home from a provider like Jacobsen Homes, you usually have the option of finding an FHA backed mortgage or a traditional mortgage depending on your credit score and the price of the home you’re looking to buy. Before locking in with a lending provider, it’s important to explore all of the options available to you. Be sure to shop around and find the best rates and terms for your specific needs.
Getting Your Credit in Check
Having a solid credit score is crucial to finding financing for your home. If your credit score isn’t quite where it needs to be, there are easy ways to help boost it. By paying off debt (ideally, you’ll be using only 20% of your total credit) and making payments on time you can greatly increase your score. Work with your potential lender to see what their specific guidelines are.
Procuring the Necessary Documentation
Most lenders require much of the same documentation but ask your lender for a list of their specific documents. Typically, updated W-2s, paystubs and proof of employment are on the top of the list of required documents. Getting these items in order before speaking with a lender will save you time later.
Organizing Your Finances
If you’re thinking about purchase a manufactured home, the time to start saving is now. Although manufactured homes offer significant cost savings over traditional homes, you’ll still need to make a down payment for your new residence. With an FHA loan and a good credit score, you can usually expect to pay 3.5% of your homes purchase value. Remember how we mentioned paying down debt? This will also allow you to save that extra money that may have been spent paying off debt for your new home.
By doing the above items, securing your new dream home doesn’t have to be a stressful task. If you still have questions about purchasing your manufactured home, the experts at Jacobsen Homes are here to help! Our team will help you navigate the process and provide the support you need to feel confident.