(courtesy of The Manufactured Housing Industry of Arizona)

Financing options for your new manufactured home are as varied as your choices for decorating. Shopping for a home loan is just as important as shopping for a new home. When determining affordability, there are more factors to weigh than just the purchase price. Considerations include size of the down payment, interest rates, length of the loan and the loan qualification requirements.

The possibilities of finding the right loan and the right lender are varied. First, a manufactured home that is purchased separately from the land it sits on, will be financed as personal property. This is the same type loan you would make on a car or boat. Down payment on these items are usually around 5 to 50 percent, and are financed over 20 to 30 years.

Homes purchased as a package with land are considered real property and are financed with long term mortgages just like site-built homes. These also can be found in a variety of packages. These could include a 30 year mortgage with a competitive interest rate.

Using an FHA or VA loan can be an advantage for first time home buyers, requiring minimum down payments for those who qualify. Another advantage is that the manufacturer must be pre-approved by the government for the buyer to get a government loan. Inspections are stricter than for conventional loans.

When you have decided upon your loan plan, look at your budget and what your future plans may hold. Size of your down payment, monthly payments and the term of the loan will differ with individual financial constraints. First time buyers often want lower downs and monthly payments to start, but know that in the future their incomes will rise. A variable-interest rate may accommodate this buyer perfectly, while another would want a fixed-rate.

Most manufactured home lenders are banks and mortgage companies. Find a lender you feel comfortable with, one who listens to you and offers subjective alternatives for your particular budget. Most manufactured housing retailers have relationships with lenders and can recommend one. Of course, you don't have to use the lender the retailer suggests. Some will have higher fees. So remember, you want to shop for a lender, just as you shopped for your home. The actual loan process may include pre-qualifying. While this doesn't guarantee you a loan, nor does it obligate your to a lender, it lets you know what you can afford before shopping for a home. Once you have decided upon your home, and whether you will lease or own your land, it's time for the loan application itself. Loan approval can take anywhere from a few days to as long as several months. This depends largely upon the lender and the type of loan you are seeking. FHA real-property loans, for example, take longer than personal-property loans.

Upon approval, your lender will give you a letter of commitment. Then, an appraisal may be done, but is not always required. This is followed by the setting up of your home. If it is already on property, you may proceed to closing. If the house still needs to be delivered, inspections will be done upon set-up. Then closing will probably be done at the lending institution or an independent escrow office. That office makes payment to all involved. At this point, you have lived the American dream, and have become a bona fide homeowner.