Posted on: 28th Jun, 2005 04:53 am
If you're looking for a relatively less costly housing option than a traditional home, then one good choice available before you is the mobile or manufactured home. Mobile home, also called as trailer or caravan, is gradually becoming a popular housing option to many home buyers. Though a mobile home may look like a traditional home but it is comparatively little difficult to finance this type of home than to finance a traditional one. With little more effort, however, you can find out the required financing option too. If you want to know about mobile home loans, check out the following topics:
- What are the types of mobile home loans?
- What are the requirements to qualify for mobile home mortgages?
- What are the steps that you need to follow to obtain mobile home financing?
- What tax benefits do mobile home loans offer?
- Top 20 Mobile home loan FAQs
What are the types of mobile home loans?
Finding out the right mobile loan product can save a lot of money for you. Here is an outline of different financing options that may help you select the right product. These loan products are categorized on the basis of land ownership, lending authority and some other factors.
- Personal property loan: If the manufactured property is not on a permanent foundation and if it is purchased separately, then you have to take out a personal property loan. When you own a land on your own, then personal property loans may be required to finance the purchase of a mobile home. In comparison to traditional home financing, the qualifying standards for personal property loans are relatively lenient.
- Mobile home mortgage loan: If the manufactured property that you want to purchase is on a permanent foundation, then you have to take out a mobile home mortgage loan. These loans are relatively difficult to qualify than the personal property loans. These loans also require higher upfront costs than the personal property loans.
- Federal programs: Title I and Title II loans are offered by the lenders approved by the Federal Housing Administration (FHA), to buy mobile homes. To qualify for these FHA-approved loans, mobile homes must conform to the HUD Code and must be located on approved foundations.
Manufactured home loans, guaranteed by the Department of Veteran's Affairs (VA), are available for for the veterans. This 100% VA financing is available if the mobile homes are located on approved foundations. The United States Department of Agriculture (USDA) also offers financing for the purchase of manufactured homes. - State and local housing agency programs: Mobile home loans are offered by the State Housing Finance Authorities/Housing Agencies to the first time home buyers at relatively lower rates.
- Construction loans: These are short term loans designed to help you build a mobile home on property you have already purchased. Short term, high interest construction loans may also be available to help you make improvements on your home or property.
- Home improvement loans: This type of loan is designed to help you make improvements to your mobile home. An example of this type of loan is a Title 1 Home Improvement loan insured by the FHA. Some states offer special loan programs in addition to the Federal government's tax deduction for certain energy efficient improvements. In addition to the options stated above, there are also mobile home refinance and equity loans available from specific lenders. All you need to do is decide why you want to take out the loan and choose the one that is right for you.
On the basis of land ownership:
On the basis of lending authority:
On the basis of other factors:
What are the requirements to qualify for mobile home mortgages?
Usually mortgage loans are not offered for the purchase of manufactured homes which were built before 1976. This is so because the lenders take a close look at the condition of the house before offering a loan. A manufactured home must comply with the building standards proposed by Department of Housing and Urban Development (HUD). Here are the requirements to qualify for a manufactured home loan -
- The HUD Code requirements:
- As per the HUD Code, the home must be built as 1/2/3 section homes at a protected place. Then the home has to be shifted to the site. Thereafter, the wheels and axles must be removed so as to give it a permanent foundation.
- The home should follow the HUD Code pertaining to quality, design, transportability, durability, energy efficiency and fire resistance.
- The manufactured home should pass the third party property inspections.
- Credit score:
Mobile home lenders require a minimum credit score of 680 to offer a mobile home loan. With a credit score higher than that, you can get better rate. - Ownership rights:
- The mobile property that you are purchasing should be clear of any liens. The property under consideration may also be managed by a co-operative association.
- Down payment:
- Depending upon several factors such as the type of loan, value of the home and your credit standing, you may be required to make down payment of 5-10% of the purchase price of the home.
What are the steps that you need to follow to obtain mobile home financing?
If you are planning to buy a mobile home, you need to follow some steps. Some of these steps are same as followed in the general home buying process, whereas some of the steps differ. Here are the steps that you need to follow:
What tax benefits do mobile home loans offer?
If the loan is a mortgage, secured by the mobile home that is your primary residence, then the Federal government will allow you to deduct the interest and property taxes you pay from your income taxes, provided you have purchased the home before September of the tax year. In addition, some states allow you to deduct your property taxes from your state income taxes, provided the Federal timing requirement has been met.
Some states, like Indiana, may permit you to deduct all or part of the rent you pay for the lot your mobile home rests on. In order to determine whether your state will permit you to deduct the lot rent, you should consult a tax professional in your state.
Some states, like Indiana, may permit you to deduct all or part of the rent you pay for the lot your mobile home rests on. In order to determine whether your state will permit you to deduct the lot rent, you should consult a tax professional in your state.
Related Readings
- Can mobile home be used as collateral to get personal loan?
- Mobile Home Reverse Mortgage for seniors
Related References:
I have found a mobile home that is already on a piece land but is not on a permanent foundation. What type of loans are available to me for this type of situation. I currently live in Maryland.
Thanks
Thanks
i want to refinance my mobile home. my grandmother cosigned for me and i want to have her off my loan. i don't have great credit, but i have lived in my home for 10 years and have been at my job for 9 years. what do i need to do to make this happen? my goal is to get my grandmother off the loan. thank you!
I want to refinance my mobile home. My grandmother cosigned for me and I want her off the loan. I don't have great credit, I have been at my job for 9 years and current address 10 years. What do I need to do to make this happen, get things started? My goal is to not have a cosigner.
my mobile was built in 1983 but has no foundation. Will I be able to get a mortgage for the purchase as a first-time home buyer w/o the foundation(we are currently renting it)
Really good knowledge sharing.
I personally like article
I personally like article
It is covering all aspects of mobile home loans
looking at a doublewide on property already set up not a park with a credit score of 619 do I have any options. Checking to see if there is permanent foundation but don't think it is
I own a Mobile Home previously occupied by my daughter on a tract of land I also own. The Mobile Home I own free and clear but have a mortgage on the land at 8%. I am planning to rent the home, and I would like to make home and land improvments. Can I refinance the existing mortgage? The mobile home does not have a permanent foundation. I am located in Pennsylvania
Yeah I live in Newnan GA and I am trying to find a lender that dose mobile home loans can any one help
My fiancee' and I are looking at a manufactured home that was made in 1984 and placed on a block foundation. We are going with her as sole purchaser and are having trouble finding institutions that will loan due to being a manufactured home. My fiancee has never missed a payment on car payments and has had only a couple of late payments due to mailing glitches (i.e. holidays) that has been resolved by online banking. We are still trying to find lenders.
what is the minimum down payment for 1st time homeowners through fha in n.h.?
im a new buyer, and i want to know my options, right now i have a land that i am still paying, 7 years more and i will done with that, I wanted to know which are my options if a buy a new or used mobile home, and if after maybe 7 years of paying it I want to sell the mobile home and then build a home, can I do that? by the way my land is on new mexico.
What should we have on hand to go to a lender to obtain an FHA loan for a manufactured home on our land.
We have poor credit due to medical bills
we own our land free and clear, my husband has many years in his current job and we have over 5 years of on time rental payment history.
We thought about and have documentation for the rental history. We are drafting an explanation letter for the credit history. Any other ideas, what are our chances of being approved?
Thanks for the information
We have poor credit due to medical bills
we own our land free and clear, my husband has many years in his current job and we have over 5 years of on time rental payment history.
We thought about and have documentation for the rental history. We are drafting an explanation letter for the credit history. Any other ideas, what are our chances of being approved?
Thanks for the information
How should We go about refinancing our mobile home on 54acres of land. We don't know who to trust. We would like to consolidate all bills on to one mortgage payment. 180000.00
Which banks or finance companies will finance mobile homes in Kansas? This home is on a full basement. I have this home listed and need to know where to send people to get financing.