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 must build each home according to 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 enter the market for conventionally built homes. The low cost of entry to purchase a factory-built home has led to a dramatic increase in the growth of the factory-built home construction 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 American 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 home buyers can find in more traditionally built bargains.

While the popularity of factory-built homes has increased, more and more mortgage lenders and brokers have entered the mobile home financing market. This doesn’t mean that all banks or brokers will finance a manufactured home, but if you do your homework, finding a lender who will do it is not very difficult. The main thing most lenders are looking for is whether the mobile home in question can be classified as real property. Qualifying generally depends on the type of foundation and substructure the home has.

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

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

Another option for mobile home buyers is to finance your new home through the manufacturer. In many cases, the manufacturer can offer loan financing terms that are competitive with conventional lenders. They can also bundle into the loan the cost of moving the home 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 those 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 whatever else you may need.

Although mobile home financing tends to be a bit different from traditionally built home mortgages, there are several options you can choose from. While many lenders offer different manufactured home loan options, it can be more difficult to get financing for a mobile home. This does not mean that you should not try, because it is very likely that you will find a lender willing to make your dream of homeownership come true.