Understanding Financing Options for a Manufactured Home - PowerPoint PPT Presentation

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Understanding Financing Options for a Manufactured Home

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  1. Understanding Financing Options for a Manufactured Home

  2. Personal property financing Real estate mortgage financing Basic Ways to Finance a Manufactured Home

  3. Real Estate Loan Products for Unsited Homes • Real estate financing packages • Leasehold mortgages

  4. Private Loan Products • Conforming conventional loans • Nonprime loans Beware of predatory lending

  5. Government-Assisted Loans • FHA Title II loans • VA loans • Rural Housing Service loans • State and local housing finance agency programs


  6. Financing Terminology • Fixed-rate loan • Adjustable-rate loan • Balloon-payment loan • Graduated or step-rate payment loan

  7. Financing Terminology • Loan-to-value • Down payment • Closing costs • Loan term • Interest rate

  8. Financing Cost Comparison

  9. Financing Terminology • Annual percentage rate • Point • Loan fees • Mortgage insurance • Escrow account

  10. Financing Terminology • Amortization • Pre-approval • Rate lock-in • Prepayment

  11. Banks Savings and loans Credit unions Mortgage companies Nonprofit organizations Lenders

  12. Government agencies Private individuals Finance companies Brokers Lenders

  13. Shopping for a Lender • Search by phone, online and in papers • Check with current bank • Ask for referrals • Contact your housing counselor

  14. Tips for Selecting a Loan Broker • Check reputation • Find out whom the broker represents • Ask about who pays the broker’s fee and how much the fee will be • Ask for a written Good Faith Estimate of closing costs

  15. Comparing Financing Options • A higher down payment = smaller loan balance, lower monthly payments and lower total loan costs • A lower interest rate = lower monthly payments and total loan costs • A shorter term = higher monthly payments and lower total loan costs

  16. Working with Lenders • Read every document carefully • Don’t sign any contract until you understand everything • Don’t sign any contract with blank spaces • Don’t rely on oral agreements • Have all terms put in writing and keep copies • Ask for advice

  17. Real Estate Financing Documents • Good Faith Estimate (GFE) • Truth-in-Lending Statement • HUD Booklet • HUD-1 Settlement Statement (HUD-1) Ask for Good Faith Estimate and HUD-1 from personal property lenders