The homeowners can rent out one portion of the duplex modular home to a third party. They do that mainly to avail some liquid cash for taxes and expenses, let alone deductions on tax. When it comes to financing small modular homes having a duplex entry, it can be either direct investment or owner-occupant depending on whose staying in the house.
Difference between Types of Mortgage
It is no coincidence that both duplex modular homes and the mortgage provided for them come in twos. Odd enough, the buyers need not reside in the property to avail conventional home mortgage. Owner occupant mortgages are different, in the manner in which it can be discounted via Veterans Administration or Federal Housing Administration loans by 3.5 percent.
VA and FHA Loans for Direct Investment
VA and FHA mortgages have small down payment and interest rates when compared to a conventional mortgage, which requires up to 20 percent as down payment. Buying duplex small modular homes on a single bid may shrink the budget though, so the FHA provides up to 96% finance. The requisite follow-ups such as verifying the borrower’s income are done prior to that.
VA and FHA Loans for Shared Occupancy
Be aware of the fact that you need a year’s occupancy certificate being the property owner, or else, both financing bodies would deny your loan claim. Most lenders require two years for giving a conventional mortgage; hence, proprietors stick around until the duplex modular home prices increase. Often, it is the prices that decide the length of stay of rental occupants if not the property owner.
Explaining Total Cost of Ownership
Buyers of small modular homes should keep cash flow projections to account for future transactions. The costs include mortgage interest, insurance payments, if any, and property tax, most certainly. The cost involved in the home inspection, maintenance cost, and other customizations to your modular home only raises the amount in cash flow projections.
Well, that explains why most people take their time in finding the right lender; some of them evaluate consumer credit and current prices too. Do keep all these points in mind when you search for small modular homes, giving umpteen investment prospects for both short and long term.