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Mortgage Community Forums | Loan Talk for First Time Home Buyers | Mobile home loan – A less costly option to buy homes

Mobile home loan – A less costly option to buy homes

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?

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.

    On the basis of land ownership:


  • 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.

    • On the basis of lending authority:


  • 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.

    • On the basis of other factors:


  • 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.

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 -

  1. 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.
  2. 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.

  3. 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.
  4. 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:


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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.

Related Readings
Related References:
Credit is fair and have money for down payment. How to go about getting
financing for about $30000
Anonymous
Posted on: 13th Sep, 2008 11:57 am
wHERE TO START
Anonymous
Posted on: 13th Sep, 2008 11:58 am
Credit is fair and have money for down payment. How to go about getting
financing for about $30000
Anonymous
Posted on: 13th Sep, 2008 12:01 pm
Hi Philip,

Welcome to the forums.

I hope you have a permanent foundation on your manufactured home. If it is built prior to 1976, then there won't be any problem getting a mortgage on your manufactured home.

What I suggest is, you can go for a no-obligation free loan consultation with the community lenders on the right mortgage that can suit your needs. The lenders will help you understand which option can benefit you the most.

Take Care
sara
Posted on: 15th Sep, 2008 06:19 am
how does one get pre approved for a loan when your not sure what your buying. Its nice to know what price range to look in
Anonymous
Posted on: 21st Sep, 2008 08:31 am
Is there a list of lenders that will do mobil home loans
Anonymous
Posted on: 22nd Sep, 2008 11:53 pm
Hi Mike geddry!

Welcome to MortgageFit Forums!

A large number of lenders are a part of the MortgageFit community. You can check the following link:

http://www.mortgagefit.com/unitedstates/

Hope this will help you.

Thanks,

Jerry
jerry
Posted on: 23rd Sep, 2008 03:47 am
Hi everyone! I could really use some help and guidance regarding getting approval for a mobile home mortgage. My husband and I have an excellent rental history. We have rented for the past six years and have excellent references. My father-in-law is moving in with us due to his health problems and we desperately need to get a place of our own. We have been doing some research into getting a double wide and financing with land that we are interested in. Our combined income is around $53,000. FIL also has agreed to give us $300/month to use towards a payment. My concerns is getting approved. My hubby's scores are in the high 500s/low 600s. Mine are in the 600s. Any chance we can get approved??

Thanks so much for any thoughts regarding this!
Anonymous
Posted on: 24th Sep, 2008 07:36 pm
Hi KrystalinFL!

There are chances that you may get pre-approved but the interest rates will be higher. Some lenders can also consider your excellent rental history. It is better you consult a lender or a mortgage broker on this.

Thanks,

Jerry
jerry
Posted on: 25th Sep, 2008 02:24 am
hi jerry!
thank you for being so quick to respond. at this point, we don't mind haivng a higher interest rate. we are working on our credit, so hopefully we could do a refinance at a later point. also, my fil knows the situation and is willing to help with the payment. do you know of any good lenders i could check with??
thanks again!
krystal
Anonymous
Posted on: 25th Sep, 2008 05:38 am
Hi KrystalinFL!

Please check the following link to know about the lenders.

http://www.mortgagefit.com/unitedstates/

Thanks,

Jerry
jerry
Posted on: 26th Sep, 2008 11:57 pm
Is it possible to obtain conventional financing on a single wide trailer through rural development in rural Alaska? It was built in 2005. It is on a foundation, It is 41 by 14.
Thanks
Anonymous
Posted on: 27th Sep, 2008 12:59 pm
hi Montana!

There are few companies who will offer you conventional financing on a single wide trailer. Its better if you could consult a qualified mortgage broker or a lender.

Thanks
smith.sussane
Posted on: 29th Sep, 2008 03:32 am
i need to refinace my manufactured home to keep from losing it late on payments need help
Anonymous
Posted on: 10th Oct, 2008 05:29 am
Hi cmodo!

Welcome to Forums!

You can contact your lender and tell him that you require refinancing. If the lender agrees, he will tell you what you need to do.

Feel free to ask if you have further queries.

Sussane
smith.sussane
Posted on: 11th Oct, 2008 12:07 am
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