If you are considering signing a mortgage on manufactured home, do not sign the papers until you have thoroughly worked out the issue of land to put your home on. You should never accept a mortgage without knowing for sure where you want the home to sit, and that it is legal for it to be there.

Your options for obtaining land will be to rent property owned by someone else, buy land, or to take package deal, which includes the mortgage on the land and the manufactured home. Each of these arrangements has their own set of circumstances to consider.

Renting Land

If you are going to live in a community of manufactured homes, you need to run this by your mortgage lender first. Many lenders will not allow you to put a home which they finance, on rented property. This is because the risk is high that you will, at some point, be required to move away from the land.

Most manufactured homes today have permanent foundations that cannot be picked up and moved. If you are asked to leave the land you are renting, there is a serious problem with the home. Many homes in this circumstance are merely abandoned, leaving the bad debt on the lender.

Even if you do find a lender willing to allow the home to go onto rented property, it is advised that you check into other options. You will not be able to have your home on a permanent foundation if you opt to move it into a community where land is rented out and it will limit your chances of selling the home in the future since buyers will be limited to getting loans from lenders that will approve a home on temporary foundation and on rented land.

Buying Land

Unless you can afford to outright pay for your land, you will have to take out a second loan in order to pay for it. While this should not be an issue with your mortgage lender, you must make sure that you can secure the loan for the land and that you can afford to pay back that loan and your mortgage simultaneously. The interest on both loans could very well leave you paying more than if you bought a conventional home.

Land/Home Package Deal

One of the easiest loans to secure for people with less-than-stellar credit histories or those that want a low down payment, is a mortgage that includes the home, land, and all set-up costs for the property. Manufactured home retailers often extend these loans themselves, so you don't have to jump through the rigorous standards of a bank or larger lending company. The problem is the ease of obtaining these loans almost always comes with a much higher interest rate.

If you have reasonable credit and a down payment, it is in your best interest to look into a conventional home before taking a mortgage on manufactured home. You will likely come out ahead by paying less interest on a home that is worth more in the long run.

If you are interested in buying a manufactured home, visit Owner Financing Home Mortgage or http://www.homeloansandrefinancing.com to get some solid tips and information on various home loans and refinancing options.