Financing and property taxes on your factory-built home
The purchase of a factory-built home and proper maintenance of the home will build equity for the homeowner. Plus, interest on a manufactured home loan (whether it is a traditional mortgage or chattel [home only] loan is tax deductible.
Today's buyer of a new factory-built home may choose from a wide array of financing options. Some financial institutions offer a virtual menu of lending programs. Many buyers arrange for their home loan through the retailer or developer from whom they buy their home.
Most retailers and developers of factory-built homes maintain business relationships with a number of lending institutions - large national lenders as well as local banks - and can assist in the preparation and submission of a credit application. Customers also may shop independently for their loan with a lender of their choice. For a list of GMHA members who may be able to help with your financing needs click here.
There are a number of down-payment assistance programs available for first-time home buyers. Check with your retailer or developer about these programs. Click here for information on first-time home buyer financing programs offered by the Georgia Department of Community Affairs.
A manufactured home can be financed as personal property (chattel loan) on leased land in a manufactured home community or on a privately owned site. When a manufactured home is financed as personal property, a title is issued on the home.
When a manufactured home is located on leased land or is not the homeowner’s primary residence, personal property (ad valorem) taxes are assessed on the home each year.
Buyers who desire to acquire land in conjunction with their manufactured home can obtain a conventional mortgage. Fannie Mae and Freddie Mac, the major secondary market sources for mortgage loans in the U.S., accept real estate mortgage loans with 20 - and 30 - year terms secured by manufactured homes. The title on manufactured homes which are permanently affixed to land which the homeowner owns may be retired when a Certificate of Permanent Location is filed thereby legally converting the home from personal to real property status.
Manufactured homes which are considered real properties are taxed in the same manner as site-built homes.
Conventional mortgages are available for modular home buyers with the same rates and terms as site-built homes. Titles are not issued on modular homes.
Modular homes are taxed in the same manner as site-built homes.