mortagesandforeclosures

by Bart Gil

These days more and more individuals are looking to purchase a mobile or manufactured home. Buying ready-made homes can save money and help you to avoid time-consuming construction. This is why many people are now buying mobile and manufactured homes even if they have no intention of utilizing the mobile features.

People say mobile homes lose value over time, therefore they say it wouldn't be wise to take out a mortgage or loan against a mobile home. What everyone really wants to know is if it's actually a decent idea to invest in a mobile home.

The answer all depends on how you plan to situate the home. Mobile homes do depreciate over time, and sometimes this can come to a point where it will be impossible to take out a loan, mortgage or home equity loan. However, it's possible for some mobile or manufactured homes to actually appreciate in value.

These kinds of manufactured homes are homes that are situated on fixed foundations. Manufactured homes that do depreciate are manufactured homes that are not situated on fixed foundations. As you can see, by just situating your manufactured home or mobile home in a fixed foundation, you will be able to appreciate a manufactured home's value.

Therefore, after a few years of timely payments on your mortgage, you will see that your mobile home equity will increase.

However, you need to remember that home equity of a manufactured home is a bit different than a traditional home equity program. Equity for a mobile home is determined by the numerical difference between the mortgage's value and the appraisal of the home itself.

For over a period of time of paying your mortgage on a timely basis, you will see that the equity will build up. You need to understand that the equity is a financial asset which you can use as collateral when taking out loans in the future. For manufactured or mobile home equity, you will see that the equity loans can be as high as 85% or even 100% of the total value of the equity on the home. This means that you can have access to most of your home's equity.

This does depend on something however. That thing is your credit score of course. If your score is good you will get a larger portion based on your equity. It also is dependent upon the policies of your lender.

If you have a mortgage and are going to take out a lone with your home itself as collateral it is best to go for a home equity loan. The forms are simpler and are faster to process than other loans so long as your mortgage payments are up to day and your credit score is good.

These are the obvious reasons to keep in mind when you take a loan on your manufactured home.

It's absolutely critical that you get your manufactured home's value to appreciate. So by simply getting a fixed foundation for your manufactured home you can increase it's value, as well as the equity if you pay your mortgage on time. When you go to take out a home equity lone you will find it much quicker and easier to get funds equal to your manufactured home's equity.

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For more information about manufactured home loans, please visit http://manufacturedhomeloan.org/

Get all the information and photos:: http://mortgagewide.info/manufactured-home-loans-and-mortgages-a-brief-overview/