Are Interest Rates Higher for Mobile Homes?
The short answer is yes.
According to a recent study by the Consumer Financial Protection Bureau (CFPB), mobile home buyers typically pay higher interest rates than for traditional, site-built homes. This is because manufactured housing loans are sometimes classified as higher-priced mortgage loans (HPMLs).
Mobile homes are sometimes perceived as higher-risk loans for lenders, due to factors such as lack of collateral and shorter loan terms. On the other hand, these interest rates can vary between different kinds of lenders and homebuyers.
When shopping for a mobile home loan, it’s important to compare rates from multiple lenders. There are many lenders who specialize in mobile home loans and offer competitive rates, so it’s always a good idea to shop around and evaluate your options. You can also work with a mortgage broker to help you find the best deal in your price range.
Another factor to consider is the size of your down payment. A larger down payment can help you secure a lower interest rate. This is because lenders view borrowers with more money invested into their mobile home as a lower risk loan. Improving your credit score and reviewing your savings portfolio are good ways to help buyers make larger down payments and earn lower interest rates.
Overall, while interest rates for mobile homes may be higher than for traditional homes, they are not necessarily prohibitive. With the right preparation and research, you can find a mobile home loan that meets your individual needs and allows you to own your own home at an affordable price.