It is basically a financing option available for the borrowers to buy both land and a home. The following are some of the facts that one must keep in mind for land home financing:
1. The land home financing options are taken use of by people who do not have a home on one fixed land. For example: the mobile home dwellers in USA.
2. There are many financial institutions lending such land home finance. The rate of interest on such loans is not standard or the same and it keeps varying between different financial institutions.
3. If you want to get a land home finance at a lower rate, then you need to have a very good credit history like in any other financing options and must have all the documents ready to prove your credit worthiness.
4. Land home financing basically comes together. You cannot get loan for just the land or the home. It should be availed for both of them.
5. There is a minimum amount of loan that one must avail. The minimum loan amount generally ranges between seventy thousand dollars and eighty thousand dollars. It depends on the institution that you are borrowing from. Thus, one cannot take a loan below the minimum amount.
6. All those people who are not aware of the formalities and procedures involved in land home financing can get their doubts clear from the financial institution representatives. They would be more than happy to do it.
7. The financing needs can be altered and customized as per the requirements of each and every borrower.
8. A person can buy both a new home or already used home through land home financing.
9. There are lots of credit facilities available under loan home financing. They are
a. Credit facility for single wide homes is the first type of credit facility available with loan home financing. The minimum credit score required is 620 and the single wide home should not be older than twenty years for approval of the loan.
b. Then comes credit facility for double wide homes. Even over here, the minimum credit score required is 620. In case of double wide homes, only loans for those homes would be accepted which were built after 1977.
c. So the age of the home and the credit rating of the buyer play an important role in the approval or rejection of the land home finance application.