Due to the market crash of 2008, trailer homes are the new trend today, and are no longer called trailer homes. Manufactured homes are the latest term for such style of living. They are housing for people affected by mortgage foreclosures after the market downturn and at the moment about 19 million people live in manufactured homes. This way of living is considered much cheaper, as there are no mortgages to pay and there are minimal expenses to maintain this kind of living space. But trailer homes can also be used as rest and recreation vehicles for other people, as this could be brought to any place when having a holiday. But how could one use living space of this kind if the financial capacity is quite limited? This loan package, called mobile home loans, is now available to financial companies. Click This Site for more details.
Mobile home loans are like other loans that are normally used when a manufactured home is to be purchased. It’s much like a car loan or a boat loan but it’s used specifically to purchase trailer homes. There are two ways to make use of that loan. The first one, just like a normal home loan or mortgage, is used to finance a manufactured home. This loan can be used to upgrade to a better trailer home, or to finance a manufactured home’s maintenance. The other method is used when purchasing a manufactured home which can be used for recreational activities such as camping or holidays. The purchase of the manufactured home is financed by a financial firm, and the purchaser repays the amount borrowed.
Living in a manufactured home may be appealing to people living in a limited budget, but it should be noted that such a loan can carry a high interest rate, much like a car loan, because the borrower may not be able to provide the lender with sufficient security for the loan he or she is making use of. The amount of this kind of loan may vary from $23,000 to $94,000, depending on the loan’s purpose. The repayment period also ranges from 15 years to 25 years, also depending on how the loan is used. In addition, most lending firms would need a down payment ranging from 3.5 percent to 20 percent of the total amount of the loan. Ultimately, most lending firms would require a good credit rating from the borrower. If not, there are also lending firms offering this loan to persons who have previously had a bad credit rating.
Given the current trends in the housing market today, due to their low maintenance and mobility factors, more and more people are being enticed to live in manufactured homes. This can be possible, as most financial firms now offer this type of home loans to people who want homes within their budget.