1. Are Your Finances in Order?
The first step in homeownership is ensuring you’re financially prepared. Here’s what you should consider:
Stable Income & Employment
Lenders typically want to see a stable employment history with a steady income. If you’ve been at your job for at least two years and your income is consistent, you may be in a good position to apply for a home loan.
Credit Score & History
Your credit score plays a major role in determining your eligibility for a mortgage and the interest rate you’ll receive. While different lenders have varying requirements, a score of 580 or higher generally opens up more financing options. If your score is lower, consider improving it by paying down debt and making on-time payments.
Debt-to-Income Ratio (DTI)
Lenders assess how much of your income goes toward debt payments. A lower DTI ratio increases your chances of loan approval. Ideally, your total debt payments—including your new mortgage—should be no more than 43% of your gross monthly income.
Down Payment & Savings
Many home loans require a down payment, typically ranging from 3% to 20% of the home’s price. Additionally, having extra savings for closing costs, home maintenance, and emergencies is essential. If you don’t have sufficient savings, it might be worth delaying your purchase until you do.
2. Do You Know Your Loan Options?
Securing the right financing is a key part of homeownership. At Horizon Homes, we work with a network of trusted lenders to help you find the best loan for your needs. Some common financing options include:
- Conventional Loans – Require good credit and typically a higher down payment.
- FHA Loans – Backed by the government and require lower down payments.
- VA Loans – Available to eligible veterans and active military members with no down payment requirements.
- Chattel Loans – Designed for manufactured homes not placed on permanent foundations.
Understanding your options can help you make an informed decision and find a loan that fits your financial situation.
3. Are You Ready for the Responsibilities of Homeownership?
Unlike renting, owning a home means you’re responsible for maintenance, repairs, and long-term upkeep. Here are some factors to consider:
Home Maintenance & Repairs
As a homeowner, you’ll need to budget for regular maintenance such as HVAC servicing, plumbing fixes, and roofing repairs. Manufactured homes require less upkeep than traditional homes, but they still need periodic inspections and maintenance to keep them in great condition.
Property Taxes & Insurance
Beyond your monthly mortgage payment, you’ll have to pay property taxes and homeowner’s insurance. Be sure to factor these costs into your budget.
Long-Term Commitment
Buying a home is a long-term investment. If you’re planning to move within a year or two, renting may be a better option. However, if you’re looking to settle down and build equity, homeownership can be a great financial move.
4. Does Homeownership Fit Your Lifestyle?
Your personal and professional lifestyle should align with homeownership. Consider the following:
Location & Community
Are you ready to settle in one location for the foreseeable future? Research the community, school districts, and amenities to ensure they fit your lifestyle.
Family & Space Needs
Do you need extra bedrooms or outdoor space? Make sure your home aligns with your family’s needs now and in the future.
Work & Commute Considerations
If you work remotely or have a long commute, consider whether the home’s location supports your work-life balance.
5. Ready to Take the Next Step?
If you’ve gone through this checklist and feel confident in your financial standing, long-term plans, and ability to handle homeownership responsibilities, you might be ready to take the next step!
At Horizon Homes, we’re here to help you navigate the home-buying process. Our team connects you with trusted lenders and provides guidance on finding the right financing for your manufactured home. Contact us today to explore your options and get started on your path to homeownership!