If you’ve had a look around for Arizona mobile home loans, you’ve probably come to realize that the options are incredibly narrow and the terms are often confusing. There’s an easy way to get qualified if you know where to look though.
The trouble with Arizona mobile home loans starts with the very definition of the phrase. A “mobile home” is often considered the same thing as a trailer house, manufactured house, or even a modular house, but these are really distinct things.
In modern times, people sometimes put up modular houses. These are fabricated in pieces at a production plant or facility and then carried to a building site as-is. Once there, a traditional foundation is usually poured and the house goes up. It is permanent and some are done so well you can’t tell at a glance that the building wasn’t constructed where it stands. However, because it isn’t built on site, many erroneously refer to it as a manufactured house.
Manufactured houses are different because they’re constructed at a facility or plant, but are brought to the property in just one or two pieces. The phrase, “trailer house” has a certain connotation, so it gets used less often, though it is accurate. They’ve earned the name because they’re transported on trailers, but many people take this to mean they can be picked up and moved at any point as well. Generally speaking, that’s not true. Most are affixed to the land they sit on.
This brings us to mobile homes, which is actually an outdated term. Technically speaking, it refers to a manufactured variety built prior to the Federal Manufactured Home Construction and Safety Standard Act of 1976. The federal law increased standards significantly across a broad range of areas, such as fire resistance, strength, and energy efficiency.
Manufactured Homes are the Real Deal, But It’s Still Hard to Get Financing
Once you get past the terms, manufactured or Arizona mobile home loans are still hard to come by. Some still think they can be picked up and moved at a moment’s notice, while others are hooked on the quality of models built prior to 1976. There are also depreciation concerns. Whereas traditional houses that are well taken care of will rise in value, the manufactured variety tends to lose value over time.
You need to learn the differences in lending terms too.
More often than not, Arizona mobile home loans are not referred to by that name at all. Instead, people get “chattel mortgages,” with “chattel” referencing a piece of personal property rather than real estate. Historically, these have much higher rates than traditional mortgages though. As an alternative, many Arizona hard money lenders are now offering financing for manufactured homes as well. This may be more ideal for those who wish to purchase one for commercial use, be it to start a business or as part of a real estate venture, like fix-and-flips or for use as a rental.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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