Mobile Home Loans

Although Mobile Homes have been in existence for quite some time now, going back to the 1950’s when they were known as ‘travel trailers’, it is now that the craze for them has finally caught on. This sudden demand for them can be attributed to the sky rocketing real-estate prices and over the top expensive site-built homes.

While earlier they were a convenient way to go places without giving up on luxury, in today’s world Mobile Homes have become a necessary requirement for those looking for cheap housing options. They are a satisfactory alternative to the traditional site-built houses and save a lot of money as well.

 The chief problem with these Mobile Homes is that since their resale value is rapidly on the decline, their usage as collateral for loans is far more riskier than conventional home loans. Interest rates changed on them are higher too.Also, there are legal problems attached to these factory built-homes.

 Initially, these Mobile Homes were taxed as vehicles instead of real estate.This led to extremely low property tax rates for its inhabitants. They were then reclassified by the local governments for purposes of taxation. There are other restrictions on these homes as well regarding exterior colors and finishes, foundation type and minimum size requirement etc. There are strong limitations on single-wide models as they tend to decline in value much faster than the double-wide models.

 So the next time you are thinking of Mobile Homes as a viable alternative, make sure you are aware of the pros and cons attached to it.