It's a Chattel Mortgage | TMH 009
In this post I’m going to talk mortgage calculators for manufactured homes (MH). Mortgages for MH are slightly different than those for conventional homes. Mortgages for MHs are Chattel Mortgages - a loan for movable property, not real property. If the MH comes with land, it would not be a chattel mortgage. Because a mortgage for movable property is riskier for the lender than real property, the repayment period shorter (15 to 25 years) and the APR is usually higher (1.5% higher) - but the loans are smaller, so it can still be affordable.
There is not too much more I can say - you will need to do your own research based on the area in which you live, and the type of MH your are buying (new, used, from a dealer, with land, without land, needs to be moved, etc.). But you should know that a mortgage calculator for a conventional home is different than one for a manufactured home. If you look at mortgage companies that specialize on MHs, some of them have calculators on their websites.
Here is a mortgage calculator from ManufactedHomes.com - which I am more comfortable in presenting to you than one that is coming from a lender, and I think it is a good place for you to start. There are six steps to the calculation:
Monthly Gross Income. Pretty straightforward.
Extra Income. Again, pretty straightforward.
Monthly Debts. This should include all your credit card debt, student loans, and such - but it should also include the MH space rental fees, so start looking at communities you might be interested in and see what their prices are.
Expected Down Payment. And again, pretty straightforward.
Interest Rate. Google current interest rates and see what they are looking like.
Term. This is the length of the loan, which will be on the short side for a MH - 15 to 25 years as opposed to 30 years.
When you Calculated, did you like what you saw?
UPDATES AND CORRECTIONS:
Date/Subject
N/A
IMAGES:
TOP TO BOTTOM - LEFT TO RIGHT
