Understanding One-Time Close Loans for Manufactured Homes: A Comprehensive Guide

Introduction

Purchasing a manufactured home is an excellent option for many prospective homeowners seeking affordability, efficiency, and customization. However, financing the construction and purchase of a manufactured home can sometimes be complex. Enter the one-time close loan—a financing solution offered by GFS Home Loans designed to simplify the process. In this comprehensive guide, we'll explore what a one-time close loan is, how it works for manufactured homes, and why GFS Home Loans might be the perfect financing partner for you.

What is a One-Time Close Loan?

A one-time close loan, also known as a single-close loan, combines the construction loan and the permanent mortgage into one loan agreement. This means you only have to go through the application, approval, and closing processes once, saving time, reducing paperwork, and potentially lowering closing costs. GFS Home Loans specializes in offering these loans to make your home-buying journey smoother.

How Does it Work for Manufactured Homes with GFS Home Loans?

For manufactured homes, a one-time close loan from GFS Home Loans finances the construction of the home and the mortgage once the home is ready for occupancy. Here's how it typically works:

1. Application and Approval with GFS Home Loans: You apply for the loan and receive approval based on your creditworthiness and the project's specifications.
2. Construction Phase:GFS Home Loans disburses funds to the manufacturer or builder in stages (draws) as the home is constructed.
3. Completion and Conversion: Upon completion and final inspection, the loan seamlessly converts into a permanent mortgage without the need for a second closing.

Benefits of One-Time Close Loans for Manufactured Homes

1. Simplified Process with GFS Home Loans: With only one application and closing, the process is more straightforward and less stressful.
2. Cost Savings: You may save on closing costs and fees by eliminating the need for a second loan.
3. Rate Protection: Lock in your interest rate from the beginning with GFS Home Loans, protecting you from market fluctuations during construction.
4. Efficient Timeline:GFS Home Loans' streamlined financing can accelerate the overall timeline of purchasing your manufactured home.

Eligibility Requirements

While eligibility criteria can vary, GFS Home Loans generally requires:

1. Credit Score: A satisfactory credit score as determined by our lending guidelines.
2. Income Verification: Proof of stable income to support loan repayment.
3. Down Payment: Depending on the loan type (FHA, VA, Conventional), down payment requirements will vary.
4. Builder Approval: The manufacturer or builder must be approved by GFS Home Loans.

Types of One-Time Close Loans Offered by GFS Home Loans

1. FHA One-Time Close Loans: Ideal for borrowers with lower credit scores and down payments as low as 3.5%.
2. VA One-Time Close Loans: Available to eligible veterans and active-duty service members with zero down payment.
3. Conventional One-Time Close Loans: Suitable for borrowers with good credit and the ability to make a standard down payment.

Steps to Getting a One-Time Close Loan with GFS Home Loans

1. Choose GFS Home Loans: Select a lender experienced in manufactured homes. GFS Home Loans specializes in this area.
2. Get Pre-Approved: Provide your financial information to GFS Home Loans to determine how much you can borrow.
3. Select Your Manufactured Home and Builder: Work with reputable manufacturers approved by GFS Home Loans.
4. Complete the Loan Application: Submit all required documentation to GFS Home Loans, including plans and specifications for the home.
5. Close on the Loan: Sign the loan agreement with GFS Home Loans, and construction can begin.
6. Construction Phase:GFS Home Loans disburses funds to the builder at predetermined milestones.
7. Final Inspection and Move-In: Once the home is complete, it undergoes a final inspection before you can move in.

Conclusion

A one-time close loan from GFS Home Loans can be an excellent financing solution for those looking to build and purchase a manufactured home. By simplifying the process and combining everything into one loan, GFS Home Loans helps you save time, reduce stress, and potentially lower costs. If you're considering a manufactured home, GFS Home Loans is here to support you every step of the way.