Everything You Need To Know For 2022:
Mobile homes are becoming increasingly popular with the millennial generation and families looking for an affordable housing alternatives in South Carolina. Not everyone can afford a traditional home however, for most it’s an affordable housing option that’s worth exploring in the current real estate market.
Although it’s more affordable than traditional homes, it’s still not cheap. Just like a traditional house, there are various ways to finance your mobile home, such as, a mortgage loan, chattel loan, and personal loans. Most people finance their mobile homes through retail installments.
In this post, you’ll learn how to finance your mobile home in South Carolina.
Let’s dive in.
Financing A Mobile Home In South Carolina
Financing your mobile home is quite similar to financing a traditional options. You might even get some added benefits for owning a mobile house. You’ll have to take out less money as a loan than a traditional house.
The most widely used way of financing a mobile home in South Carolina is through an installment loan contract. Most mortgage lenders don’t cover mobile homes, but a few institutions provide a special mortgage for mobile homes. ‘
Some even offer long-term loans. Mobile homes in South Carolina also qualify for government-insured loans by FHA (Federal Housing Administration). And even personal loans. Keep in mind manufactured homes that qualify for FHA are typically affixed to a permanent foundation and must pass FHA requirements.
Let’s explore a few financial methods and find the best one for you.
1. Mortgage Loans
While not all lenders provide mortgages for mobile homes, some do, and they provide great service. The biggest advantage you get from applying for a mortgage is – you get qualified for notably lower interest rates, better repayment terms, and tax deductions.
So, applying for a mortgage loan can be a great option to finance your mobile home.
Here’s a list of mobile home loan companies in South Carolina:
2. Personal Loan
Mobile homes are a lot more affordable compared to traditional houses. So, it’s easier for someone to finance it through a personal loan, contrary to a mortgage or some special loan. You’re usually not required to provide collateral for a personal loan.
But the downside to a personal loan is that the interest rates are substantially higher. So, although it’s an option, it’s not the best one. You can check with your local credit union for personal loan options to see if this is a viable option.
A list of all credit unions in South Carolina:
Visit SCIWay For Local Credit Union Finance Options
3. Chattel Loan
Chattel loan is a special kind of loan for mobile homeowners. This is the most popular financing option for mobile homes. And they’re by far the easiest ones to get. This allows them to lease the lot on which their mobile home sits. Although the down payment of a chattel loan can be as low as 5%, the interest rate is fairly high. So, if you avoid this type of loan, then you should.
- South Carolina Chattel Loan Provider: JCF Lending Group
4. USDA Loans
The Rural Housing Services (RHS) provide a loan under the USDA, also known as the U.S. Department Of Agriculture. This is for people who will have a permanent foundation and are planning to finance both their land and mobile home. So, it might not be the best option for everyone. Also, the rules and conditions for eligibility are very strict. Take a look at the conditions and rules to qualify for the loan.
5. VA Loans
Former military members and veterans can apply for a VA finance home loan for the mobile home. This works similarly to an FHA loan, but this one is specifically for veterans. They allow you to finance up to 95% of the purchase value of the mobile home and the lot it will sit on. This offers many benefits and leeway for the loan taker, so, if you’re eligible, you should take advantage of this.
6. FHA Loans
You may get financial support for your mobile home through an FHA loan from the Federal Housing Administration. FHA loans are incredibly popular among first-time home buyers. They also provide a low downpayment mortgage choice.
They allow you to put down as less as 3.5% on a mobile home purchase. You can also borrow up to 97.75% through FHA refinance. And you’ll be at less risk because the government assures you that they’ll pay your debt if you can’t. But getting an FHA loan isn’t easy. You’ll have to meet very strict requirements.
Mobile Home Loans
Some institutes like eLend and Country place offer specialized loans for mobile homes in South Carolina. They offer loans for mobile homes in South Carolina with very low-interest rates and reasonable terms throughout the state.
Closing Thoughts
A mobile home can be a great investment with the right financing. Take a look at all these financing options, consider the interest rates and what benefits they offer, and carefully decide which one is right for you.
