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 would like to refinance and pay off my loan and have one payment my modular app. at 173,000.00 with 1 acre and have more land to put with it to app. up. my modular is 2250 sq ft. with double carport attached to it. what kind of fixed rate could i get with a beacon score of 780 30 year fixed.
Daughter has 1999 Chandeleur 80 x 16 single trailer on my property. She has moved to another state and cannot afford the trailer and her current house. I am interested in buying trailer from her to rent out. What type of finance options do I have? Current loan balance is $20,000. My credit rating is >800, own my own home, annual income approx. $120,000.
I am looking for a loan to pay off my mobile home so I do not have to pay 500 month rent, I'd rather pay the lot rent of 185 versus 500..Where I live even if I pay the 500 month none of that money I put toward the mobile home will come off the amount of the mobile home if I but it at income tax time Jan. 2010..so I would really be paying 8,000 for the mobile home loan, my credit score is only 583, 600, 546. I do have some delinquent accounts in my credit score in which I was planning to pay income tax time, however I could not pay anything right now on them. I really need some assistance..If I do not come up with the money soon to buy I will be evicted and the owners will sell to someone else, the owners want this money now..I cannot afford to me as I am a single mom.
i want to buy a mobil home with 2 acers we are in talks but a price i want to know what type of loan i need it was built in 2005
Hi blueteddy,
There are loan programs that help you purchase both the mobile home and the land on which to put it. FHA has got a Title I program which allows you to do that. You need a minimum score of 620 points to qualify for it. If your credit is near about 720, you can opt for conventional loans as well. What are your credit scores? What approximately is your income? Do you have any other debt obligations?
There are loan programs that help you purchase both the mobile home and the land on which to put it. FHA has got a Title I program which allows you to do that. You need a minimum score of 620 points to qualify for it. If your credit is near about 720, you can opt for conventional loans as well. What are your credit scores? What approximately is your income? Do you have any other debt obligations?
Hi Steve,
You have got an excellent credit score of 780 points. You will definitely qualify for a refinance in terms of your credit score. You can even go for a conventional loan with 780 credit score. The 30-year fixed rates are quite low at present. So, it definitely a good idea to go for a fixed rate loan instead of an ARM. Your interest rates also depend on your down payment amount, discount points etc.
I think you can go for a no obligation free mortgage quote from the lenders of this community. They will assess your financial situation, credit scores etc. If you qualify, they will get in touch with you and will offer you free quotes. This will let you know what type of rates you can expect to get on your 30-year fixed rate mortgage.
Hi Judi,
Your credit score and income are good enough to help you qualify for a loan. The trailer you want to purchase has a mortgage balance of $20k. If there is enough equity in it, you can refinance it in your name and pay off the existing balance. Once the title is in your name, you can rent it out. With the credit score and income that you have, you can go for a conventional loan.
Hi Jenni,
It will be difficult for you to get a loan in this situation. Your middle score of 583 is not enough to help you qualify for a loan. A minimum score of 620 is required these days. You also have some delinquent accounts in your credit report, which is not going to be in your favor. So, you really need to improve your credit to be able to get a loan. The very few lenders, who may still offer you a loan with 583 credit score, will charge you exorbitant interest rate.
Thanks,
Jerry
You have got an excellent credit score of 780 points. You will definitely qualify for a refinance in terms of your credit score. You can even go for a conventional loan with 780 credit score. The 30-year fixed rates are quite low at present. So, it definitely a good idea to go for a fixed rate loan instead of an ARM. Your interest rates also depend on your down payment amount, discount points etc.
I think you can go for a no obligation free mortgage quote from the lenders of this community. They will assess your financial situation, credit scores etc. If you qualify, they will get in touch with you and will offer you free quotes. This will let you know what type of rates you can expect to get on your 30-year fixed rate mortgage.
Hi Judi,
Your credit score and income are good enough to help you qualify for a loan. The trailer you want to purchase has a mortgage balance of $20k. If there is enough equity in it, you can refinance it in your name and pay off the existing balance. Once the title is in your name, you can rent it out. With the credit score and income that you have, you can go for a conventional loan.
Hi Jenni,
It will be difficult for you to get a loan in this situation. Your middle score of 583 is not enough to help you qualify for a loan. A minimum score of 620 is required these days. You also have some delinquent accounts in your credit report, which is not going to be in your favor. So, you really need to improve your credit to be able to get a loan. The very few lenders, who may still offer you a loan with 583 credit score, will charge you exorbitant interest rate.
Thanks,
Jerry
We got a 5yr. ballon note to buy a used 2000 dw mobile home.We used 20 acres on the lake and home for colteral with the plan to refinance 3 acres and home on a morgage. Now we are told we must refinance all the land since it is on the original note. The land is worth way more than the loan. We have standard underpinning they want block foundation which offers no real support. Where can I refinance 65,000 for a dwmh and 3 acres on the lake without putting up 200,000 worth in land? Credit score 675 more or less. THANKS RON
Hi - After looking over the internet I ran across your site and thought I would give it a try and see if someone could please help me.
I just recently purchased a older Mobile Home (1973) which has a new hot water heater (40 gal.) new furnace, new thermal windows throughout the home, newly repaired roof and central air conditioner (5yrs old) This was a very well keep mobile home that I bought on a land contract from my sister-in-laws folks. I would like to obtain a loan to pay them off as I hate having to owe family as it can run into problems down the line and I also want to catch up on some past due bills so I can prepare for myself for retirement as I am not that far away from then. I have a great government job as an Administrative Assitant/Deputy Treasurer for over 14yrs. I make a little over $18 an hour and I have over $60,000 in pension but can not touch that money until I retire and over $125,00 in death benefits (worth more dead then alive) should I die this loan would be paid for. My state retirement money I can not borrow against this money and I do not have much left in savings as I gave them a downpayment of $1,000 and wiped out most of my smaller savings account. I am looking for a $20,000 loan and willing to pay higher interest up to 15%-18% and pay loan off within 36-48 months. With my paycheck, I can afford a $600-$650 a month payment. My lot rent is only $432 a month which includes water, sewer and taxes. I do not have major charge cards and just a car payment, insurance and utilities. My credit score is close to 600 (not the best due to some unfortunate circumstances a few years ago) which I can explain if asked but had to file bankruptcy 2yrs ago and it has affected my credit but now starting to improve and go up. I have gone on line to find private lenders but most are either marketing scam artists or other sites with outrageous interest rates. I am even willing to do ACH payments right from my checking account. as I have direct deposit from payroll.
In conclusion, I am looking for somewhere I can get this loan and any type of help or information as to where I can look on line would be helpful. Thank you for your time in this matter.
I just recently purchased a older Mobile Home (1973) which has a new hot water heater (40 gal.) new furnace, new thermal windows throughout the home, newly repaired roof and central air conditioner (5yrs old) This was a very well keep mobile home that I bought on a land contract from my sister-in-laws folks. I would like to obtain a loan to pay them off as I hate having to owe family as it can run into problems down the line and I also want to catch up on some past due bills so I can prepare for myself for retirement as I am not that far away from then. I have a great government job as an Administrative Assitant/Deputy Treasurer for over 14yrs. I make a little over $18 an hour and I have over $60,000 in pension but can not touch that money until I retire and over $125,00 in death benefits (worth more dead then alive) should I die this loan would be paid for. My state retirement money I can not borrow against this money and I do not have much left in savings as I gave them a downpayment of $1,000 and wiped out most of my smaller savings account. I am looking for a $20,000 loan and willing to pay higher interest up to 15%-18% and pay loan off within 36-48 months. With my paycheck, I can afford a $600-$650 a month payment. My lot rent is only $432 a month which includes water, sewer and taxes. I do not have major charge cards and just a car payment, insurance and utilities. My credit score is close to 600 (not the best due to some unfortunate circumstances a few years ago) which I can explain if asked but had to file bankruptcy 2yrs ago and it has affected my credit but now starting to improve and go up. I have gone on line to find private lenders but most are either marketing scam artists or other sites with outrageous interest rates. I am even willing to do ACH payments right from my checking account. as I have direct deposit from payroll.
In conclusion, I am looking for somewhere I can get this loan and any type of help or information as to where I can look on line would be helpful. Thank you for your time in this matter.
To Ron,
Your credit score is good enough to get you a loan. However, I don't understand why the lender is insisting on having the entire land as collateral. If the land is worth way more than the outstanding balance on the existing loan, there's no need to use all of the 20 acres of land as collateral. As far as the property and foundation requirements are concerned, they vary from one lender to another.
You may seek a no obligation free mortgage quote from the community lenders. They will check your credit scores, income and determine if you qualify for the loan. If you qualify and the lenders think they can give a loan using only the 3 acres of land, they will offer you free mortgage quotes. If you get a good deal, you can go for the loan or you may choose to contact any local lender for a mortgage quote.
To Sassie,
You've got a good income and your job as a government employee for the past 14 years will no doubt work in your favor when lender reviews your loan application. You do not have too much of debts, which means your debt to income ratio should also be low enough to get you the loan.
However, you credit is definitely not the greatest. A 600 credit score is not considered to be enough for a loan in this depressed economy. FHA offers loan at 620 credit score and this is the minimum score most lenders would like you to have. For conventional financing, your score need to be more than 700. You also have some past due bills and filed bankruptcy just 2 years ago. Considering these facts, qualifying for a new loan does not look too easy for you. However, if you can provide the lender with proper explanation with regards to these negatives on your credit, they may still offer you a loan.
Another fact that might work against you is the age of the mobile home. Lenders do not want to finance loans against such old mobile homes. These homes do not comply with the Federal National Manufactured Housing Construction and Safety Standards Act of 1974. They have high rate of depreciation and low life expectancy. This is why lenders are often reluctant to finance homes built before 1976.
You may go for a no obligation free mortgage consultation with the lenders in this community. They consider all the qualifying factors and let you know if it is possible for you to get a loan, given this situation. They will also be able to offer you suggestions about how and what type of mortgage you may qualify for.
Your credit score is good enough to get you a loan. However, I don't understand why the lender is insisting on having the entire land as collateral. If the land is worth way more than the outstanding balance on the existing loan, there's no need to use all of the 20 acres of land as collateral. As far as the property and foundation requirements are concerned, they vary from one lender to another.
You may seek a no obligation free mortgage quote from the community lenders. They will check your credit scores, income and determine if you qualify for the loan. If you qualify and the lenders think they can give a loan using only the 3 acres of land, they will offer you free mortgage quotes. If you get a good deal, you can go for the loan or you may choose to contact any local lender for a mortgage quote.
To Sassie,
You've got a good income and your job as a government employee for the past 14 years will no doubt work in your favor when lender reviews your loan application. You do not have too much of debts, which means your debt to income ratio should also be low enough to get you the loan.
However, you credit is definitely not the greatest. A 600 credit score is not considered to be enough for a loan in this depressed economy. FHA offers loan at 620 credit score and this is the minimum score most lenders would like you to have. For conventional financing, your score need to be more than 700. You also have some past due bills and filed bankruptcy just 2 years ago. Considering these facts, qualifying for a new loan does not look too easy for you. However, if you can provide the lender with proper explanation with regards to these negatives on your credit, they may still offer you a loan.
Another fact that might work against you is the age of the mobile home. Lenders do not want to finance loans against such old mobile homes. These homes do not comply with the Federal National Manufactured Housing Construction and Safety Standards Act of 1974. They have high rate of depreciation and low life expectancy. This is why lenders are often reluctant to finance homes built before 1976.
You may go for a no obligation free mortgage consultation with the lenders in this community. They consider all the qualifying factors and let you know if it is possible for you to get a loan, given this situation. They will also be able to offer you suggestions about how and what type of mortgage you may qualify for.
savior79 - thanks for your reply - yes, i have a good income and can afford payments. as for the bankruptcy, a few years back i tried to help my step-daughter & her now ex-husband when they purchased a home. me being the good hearted person tried to help by signing as guantor on a loan of $20,000 (foolish me) never thinking that i would be taken advantage of but long story short, they ended up foreclosing on the home and the person they owed the smaller loan to came after me, which i tried to fight this situation had to pay attorneys, fell back on my own bills and ended up filing bankruptcy, which ruined my credit and my score was down to low 500's. now tryng to work my way back it's close to 600 and bought this mobile home to prepare for retirement. believe me i will no longer sign to help step kids again.
i know the home is older but, with all the new improvements the life of the home will last for many years to come and i do plan on remodeling the bathroom and kitchen eventually.
so hopefully someone will help me somewhere so i can get ahead before i retire. thanks for your info. sincerely!
i know the home is older but, with all the new improvements the life of the home will last for many years to come and i do plan on remodeling the bathroom and kitchen eventually.
so hopefully someone will help me somewhere so i can get ahead before i retire. thanks for your info. sincerely!
I have found a mobile home I want to buy.The home is in a park. I have a poor credit history. the home is 29,000 is there any way of getting a morgage loan?
WHAT COMPANIES GIVE MANUFACTURED HOME LOANS
Hi, I am wanting to buy a new mobile home. I filed reorginazation bankruptcy for medical reasons in 2004 and discharged in 2007. My credit score is 680 with no late charges. Will I have any problems with getting a loan?
HI COULD YOU HELP ME I NEED 15,000 AND I OWN MY HOME I DONT OWE BUT 635.00 AND ITS PAID SO CAN YOU HELP?
Hello, I have a mobile home title that is free and clear and would like to use it to get money out for home improvements? Its on a permanent foundation but would only like to use the house. Is that possible?