What are the pros and cons of Home Improvement Loans?

Advantages Of A Home Loan
There are many advantages to taking out a homeowner loan. It is a relatively low cost way to finance major purchases or home improvements, and the money comes with very few restrictions. A home loan can usually be processed and closed very quickly, and the fees associated with it are often much less than with other types of loans. Most home loans can be repaid over a longer term than an unsecured loan, and you have the option of clearing it early if your finances are sufficient.

Disadvantages Of A Home Loan
Because homeowner loans are relatively easy to obtain, it can be tempting to overspend with the money you borrow. Remember, this is not free money and you are literally borrowing from the value of your home. It?s best to use the money for things that are good investments either in the home itself or in the future of your family. Common examples of things that are considered good investments include home improvements, renovations, and a child?s education.

Buying and Financing a Manufactured House: Pros & Cons

If you are currently in the market for a new home, perhaps you have considered manufactured housing. What is a manufactured house? It is typically a home that is built completely in a factory (commonly known as a mobile home). When it is finished, it is moved to the site where it will be installed.

One of the biggest cons to buying this type of a house is that you can almost never get a traditional mortgage. Lenders do not like to finance these types of houses as they could be moved at any time. Also, it is hard to build equity in a manufactured home (for reference, equity is the property value minus the debt). Many owners of manufactured houses do not own the land their house is sitting on, and land is a big part of equity.

Manufactured houses simply do not tend to go up in value. They are also geared towards lower income levels, and sometimes there are inferior building materials used. These are a few of the reasons why it is hard to get a traditional mortage on a manufactured home.

The pros are that manufactured houses are very affordable, and provide people without a lot of income with a way to own their own home. More and more people are buying manufactured homes and permanently installing them on land that they own. Because of this sometimes they are able to qualify for a traditional mortgage.

If you are planning on considering a manufactured home, arrange for your own financing (do not necessarily go with the offer the seller of the home will try to talk you into). You will usually get a better deal arranging for financing yourself.