The manufactured home loan insurance is a government loans program under the housing loans category. It is designed to assist a prospective buyer in purchasing a ready-made home with the land on which it is located. The home bought under this housing loans scheme must be the prime residence of the possessor, that is, the borrower. The borrower must, to be eligible, own a home or hunt for a new home, arrange to repair his existing home, or improve or remodel his present home. He can also refinance his present mortgage or buy a new home meant to be his principal dwelling.
The housing loans provided by private lenders or financing institutions to the borrowers for purchasing manufactured homes are insured under the manufactured home loan insurance program. Since 1969 the Housing & Urban Development, HUD in short, has been providing insurance cover for the mortgage for manufactured homes to the money lenders against the risks including default by the borrowers. This has helped the borrowers to avail of cheaper housing loans as against the costlier personal loans.
The HUD insurance scheme for housing loans advanced by private moneylenders offers insurance cover against losses up to 90% of the value of a single loan and the balance ten percent becomes the lender's responsibility. While the rates of interest are negotiable the borrower must make the necessary down payments as specified by the loan contract. The loan terms vary from 15 to 25 years depending upon the size and type of loan. The HUD approved surveyor will assess and appraise the value of property etc. before the actual loan dispersal process.
The Federal Housing Administration or FHA in short is a branch of HUD and works through local mortgage lending agencies to offer Federal manufactured home loan insurance for housing loans meant for purchasing own house or home improvement projects. FHA helps even those who are unable to pay the requisite down payments for usual loans by providing insurance cover to the mortgage provided by the private lenders. FHA also helps in procuring low cost homes for rent by providing insurance cover to loans advanced for low cost homes and multifamily housing developments by builders. FHA thus takes care of mortgage refinance, down payments, mortgage insurance for manufactured homes and generally helps to improve the borrower to lender equations for better business scene to prevail.
In conclusion, manufactured home loan insurance can be beneficial for many in acquiring cheaper housing loans. The official governmentloans.com Government Loans website has more information about such programs.
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