Lenders may be more willing to advance funds for this type of loan than when the borrower offers other types of property as collateral since a homeowner can't hide the asset from the lender if he or she defaults on the loan.
For these reasons, if a borrower defaults on a loan for a mobile home and land purchase, there's a great chance that the outstanding value of the property will not be as much as the unpaid balance on the loan.
The homebuyer applies for the mortgage through a local lender and then the mortgage is backed by the FHA, giving the lender a guarantee that the loan will be repaid by FHA if the borrower defaults on the loan.
These benefits are provided by lenders who, in turn, have received a guarantee from the government that the lender will be compensated if a homeowner defaults on any of these specially-designed mortgages.
The major disadvantage to having parents as cosigners is the fact that the parents will be left to pay the Visa bill in the event that the college student defaults on the account for whatever reason.