We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding the Combination Loan [HUD]: A Comprehensive Guide
Definition & Meaning
A combination loan is a type of financing that allows a borrower to purchase or refinance both a manufactured home and the land it sits on in a single transaction. This loan can also cover additional structures such as garages, patios, or carports that are associated with the manufactured home. This streamlined approach simplifies the borrowing process for individuals looking to secure a home and its property simultaneously.
Table of content
Legal Use & context
Combination loans are primarily used in real estate transactions involving manufactured homes. They are relevant in the context of housing finance and property law. Borrowers can utilize these loans to facilitate home ownership while ensuring that the land is also financed, which is crucial for legal ownership and property rights. Users may find templates and forms related to combination loans on platforms like US Legal Forms, which can assist in managing the necessary documentation.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A family wants to buy a manufactured home and the land it sits on. They apply for a combination loan to finance both the home and the lot in one mortgage, simplifying their financing process.
Example 2: A homeowner wishes to refinance their existing manufactured home and the land it occupies. They opt for a combination loan to consolidate their debt and potentially lower their monthly payments. (hypothetical example)
Relevant laws & statutes
Combination loans are governed by federal regulations under the Department of Housing and Urban Development (HUD), specifically outlined in 24 CFR 201.2. This regulation defines the parameters for such loans and ensures compliance with national housing standards.
State-by-state differences
State
Key Differences
California
Specific state regulations may apply to manufactured home financing, including additional disclosures.
Texas
Texas has unique laws governing the titling of manufactured homes that may affect combination loans.
Florida
Florida offers specific programs for manufactured home loans that may differ from federal guidelines.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Conventional Loan
A standard mortgage loan not backed by a government agency.
Does not typically cover land and home together.
Chattel Loan
A loan secured by movable personal property, like a manufactured home.
Usually does not include land financing.
Common misunderstandings
What to do if this term applies to you
If you are considering a combination loan, start by assessing your financial situation and credit score. Research lenders who offer combination loans and compare their terms. You can also explore US Legal Forms for templates that can guide you through the application process. If your situation is complex, it may be beneficial to consult a legal professional for personalized advice.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.