Financing a Manufactured or Modular Home

Less than 20% of people who buy a manufactured or modular home pay cash for their purchase. The rest require financing. In today’s lending climate (mostly due to 2013’s Dodd-Frank Act), the government has restricted the manner by which a builder can assist in arranging financing for a customer. Just the same, Oak Creek has access to most of today’s most popular and established lenders and is eager to facilitate the transaction in any way that’s legally possible. This article is intended to familiarize you with many (but not all) of the most common ways to finance your home.
For those who own their own land, regular mortgages (often backed by FHA and VA) are a common form of lending. In this approach, the land and home are tied together into a single loan package. Though mortgages often have lower interest rates, they do take more time to execute due to appraisals, mandatory waiting periods and other government regulations.

Chattel loans are a form of lending that is used for financing homes only. In other words, you are obtaining a loan for a home but not the land on which it is placed. Homes placed in parks and rental properties are common candidates for chattel financing. Though these loans often have higher interest rates, they are relatively quick and easy to execute.

Alternative financing, such as conventional land/home packages, is an efficient way to finance the home quickly while experiencing the benefit of tying in the land equity to achieve preferred terms. In addition, homebuyers are encouraged to use their own local banks if they prefer. Oak Creek will provide them any information necessary to process the loan transaction.

No other company offers as many financing sources as Oak Creek Homes but the first step in buying is picking out the home of your dreams. Fill out an appointment request now to meet with one of our representatives at your convenience.

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Chad Gaston
Corporate Director at American Homestar

I have worked for Oak Creek Homes since 1998.


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