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 a mobile home where the axles have been removed and it sits on property that I own outright. My credit is not good. Obviously I have equity in the home/property since I own them both with no mortgage obligations. Is there a program ANYWHERE where i can borrow against this equity??????
My wife and I are looking at purchasing a property at Lake Mart** RV Resort in Dadeville, Alabama. This resort is a gated community with a beach, clubhouse, boat ramp and bath/laundry house. We are looking at a deeded lot with a 12 x 40 park model RV set up and tied down. It also has a large waterside covered gazebo and a U shaped pier with a boat lift. This would be a second home for us. The asking price is $185,000. Our household income is around $200,000 and we have a credit score around 800. Is this a type of loan your company makes?
Are there any age limits on financing a mobile home? Meaning the age of the home.
I bought a home with my ex fiance. He had proof of good income, but so so credit. I worked as a waitress and had excellent credit. Anyways, we could not get the loan unless we had another co signer. My mother, who had just purchased her first home, agreed to help us. My ex left and is not helping with payments at all. He says he doesn't care if the place forecloses(nice guy). Well I cannot afford it on my own and my mother cannot afford to help me. I would file for chapter13, but what will it do to my mother? Will the bank go after her home or retirement? Any info. I can get would be helpful. I am so scared about her losing everything she's worked for all her life. Please help if you know anything that can help. Thank you
My friend wants to buy my mobile home. He needs to find financing for it. My mobile is not on a perm. foundation and his credit is only fair. Can he get a loan anywhere here in New Mexico to buy my mobile?
I own my mobile home, it is located on privately owned land that is not mine. I would like to take an equity loan out, I understand that there are high interest rates, however I have other bills that I would like to pay off with the loan, Hospital...rent to own.....help from family.....who can I contact about this? Beacon Score is currently 552
FOR MOBILE HOME FINACED
i own 3 acres and would like to use that as my down payment,so i dont have to come up with the cash, would i be able to do that?
does a newer model mobile home have to have a foundation to be financed?
we need a lower interest rate , and enough to pay off a high interest loan at Bof A . Also cash out amt. for repairs Thank you , Ann (we have good credit)
I am a little confused on private mortgage insurance. Our daughter is 24 yrs. old and purchasing her first home with a credit score of 750. The lender took her through Fannie Mae of which requested a 10% downpayment due to her "short credit history." (one car loan, apartment, one unused credit card) But still with a 10% downpayment she will pay a PMI attached to her loan payments. Is this common policy? Her debt to payment ratio is fine. Seems like she is being asked for alot of security. Would these requirements exist through all lenders going through Fannie Mae or just this particular institution? She has had the same employer for 2 years. Can you explain?
My husband and I want to purchase a new mobile home, but have poor credit. Our credit scores are both in the low 500. We have 10,000 to put down on the mobile home and own the land where it will be going. Is it possible to get a loan? We need the loan as soon as possible.
We need to refinanace our loan with Greentree ,quickly. Our credit rating is fair.
Ihave 2 loans total 100k and change. I am on 80 acres valued at 1400 to 1600 per acre. What can I look for in a loan?
iam trying to mortage my house and land but they are also a mobile home on my land and no one will do it. can you help?