Manufactured Housing News

Buying a home is an exciting milestone in anyone’s life. That includes anyone buying a manufactured home— a popular, modern option that provides affordable and flexible housing. However, just like with any major financial decision, it’s important to be cautious, especially when it comes to getting financing. Unfortunately, many common scams target potential homebuyers, and the complexity of financing a manufactured home can make it easier for them to take advantage of you. Triad has some key strategies to help you avoid these scams and protect your wallet when financing a manufactured home.

Understand the Financing Process

Before starting your search for a loan, it's important to get familiar with the options that are available. Unlike traditional site-built homes, manufactured homes don’t always qualify for conventional mortgages unless they are permanently affixed to their foundation. As a result, a lot of buyers rely on personal property loans (also known as chattel loans) or specialized financing programs for manufactured homes. Knowing your options can help you avoid lenders who promise too-good-to-be-true deals or try to push you into something manipulative.

Compare Lenders Carefully

One of the most important steps in avoiding scams is to work with a trusted manufactured home loan lender. Whether you’re thinking about using a bank, credit union, or specialized provider, research each company thoroughly before giving them any personal information or agreeing to any loan terms. Look for good reviews, check for any complaints with the Better Business Bureau (BBB), and find out the lender’s credentials.

Stay away from lenders who ask for upfront fees or pressure you to make quick decisions. Trustworthy lenders will give you clear, detailed information about terms, interest rates, and fees, and they won’t demand immediate payments before the loan is even approved.

Watch Out For Predatory Loan Terms

Some scams take the form of predatory lending, where borrowers are offered loans with very high interest rates, hidden fees, or unfavorable terms that make it difficult or impossible to repay. Pay close attention to the loan’s interest rate, and be skeptical of any terms that seem out of line with standard industry practices. If a lender pressures you into signing documents without giving you time to review, or they refuse to answer any questions, it's a red flag.

Make sure to ask for a detailed breakdown of all fees, and don’t be afraid to walk away if something doesn’t feel right. It's also a good idea to get multiple offers so you can compare them and spot issues.

Beware of Identity Theft

Another common scam people run into in this process is identity theft. Scammers might pose as legitimate lenders or real estate professionals and ask for sensitive personal information, such as your Social Security number or bank account details. They may pretend to be using it to process your loan application. But once they have your information, they can use it for fraud.

To protect yourself, never share personal information with unverified parties, and be cautious about where and how you provide sensitive data online. Always verify the identity of the person or company who’s asking for your information, and make sure that websites are secure before entering any details.

Avoid “Too Good to Be True” Offers

If an offer sounds too good to be true, it probably is. Watch out for lenders who promise extremely low rates, guaranteed approval regardless of your credit history, or no down payment requirements. Scammers often lure victims with promises of easy or instant approval, only to disappear with payments you’ve made or personal information you’ve given.

Financing a manufactured home can be a smart and affordable housing solution, but it’s important to stay cautious to avoid falling for scams. By understanding the financing process, carefully vetting lenders, and protecting your personal information, you can safeguard yourself from fraud and make confident financial decisions. When in doubt, consult a trusted financial advisor or specialized experts like the team at Triad for guidance.