Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

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:


/styles/mortgage/img/mobile-home-loan-steps.png

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:
I need a loan for land an the mobile home thsat is on it. I do nt have good credit but my credit is not bad. can you tll me a place that will help me ? :?
Posted on: 12th Apr, 2009 05:23 pm
my fiance and I need a loan..can some one help us....we have 4200 cah on hand to put down and the mobile home loan is for 39000.00
my number is 410-703-9262
Posted on: 13th Apr, 2009 11:05 am
Hi tolsons,

Getting a new loan in the current situation does not seem to be possible. You can list the property for sale and see what kind of offers you get. Do you know what the current appraised value of the property is? This can give you an idea about what the property could be sold for and whether you would be able to pay off your debts with the sale proceeds.

Hi chill and Tina,

You have not mentioned what your credit score are. Getting a loan with poor credit is not going to be easy in present market scenario. You will be required to pay a high rate of interest and a good amount of down payment, besides fulfiling other requirements set by the lender. However, you can seek a no-obligation free consultation with the lenders in this community. If your profiles match their requirements, they will contact you and offer a free mortgage quote.
Posted on: 14th Apr, 2009 12:40 am
Jessica,
I am very impressed with your knowledge of mobile home loans and financing!
Being in the real estate and mortgage industry for over 18 years,I never really gave too much thought to mobile and manufactured housing - until I purchased one for myself! It was a nightmare finding someone who truly knew what they were talking about. It was time to give up and throw in the towel or take the reins into my own hands!
Now specializing in mobile and manufactured home loans, I still cringe at the misinformation given to people - I just wanted to give you "kudos" and let you know how refreshing it is to see there is someone else out there who knows her stuff! Thanks! You make my job of actually doing the loans easier!
Posted on: 15th Apr, 2009 02:19 am
Due to a drop in income this past year I am forced into "short sale" on my condominium. As I prepared to move into another home, I assumed that I would need to rent an affordable apartment. Landlords are hesitant with this condo payment history on my credit report. However, a lender on a Manufactured home, (foreclusure), approved my loan application at a moderately high interest rate but I was relieved to even get that deal. The monthly payment with taxes and interest will still only be about 350.00 a month. I have to then pay 400.00 a month to lease the land the home sits on in a Mobile home park. Total "house" payment for a really nice 3 bedroom home will be 750.00 a month, (about 1/3 of my existing mortgage and HOA fees per month.

So....the question is will my mortgage lender prohibit or prevent my ability to take a loan and make payments to another lender when they have accepted a low offer in the "short sale" process? In other words if I am not able to pay them fully can I then legally pay some other lender and not them? My feeling is that I obviously need to pay rent or housing SOMEWHERE and although this new plan of 750.00 per month is a "mortgage payment", it is far less than I would have to pay for rent anywhere in Chicago area where I live.

Would really appreciate info if anyone can address the legality, ethics, integrity of my housing plan. Thank you
Posted on: 15th Apr, 2009 01:05 pm
Hi

I've answered your query at http://www.mortgagefit.com/problems/shortsale-financehome.html#89108.
Posted on: 16th Apr, 2009 06:11 am
My parents purchased a very nice mobile home in Florida at the top of the housing bubble. They now owe more than it is worth and they are paying a high interest rate. They lease the land. They are looking into a loan modification with a company that is asking for money up-front with no guarantees. I have warned them that it is probably a scam since their bank has already told them they do not qualify for loan modification.
Is refinancing with a lower interest rate a better solution for them? They have good credit and are not delinquent on payments.
Posted on: 16th Apr, 2009 07:11 am
hi

your parents ought to be very careful. this can well be a scam. ask them not to pay any money upfront. a refinance would be good. but with little equity in the property, that option might not work. did you ask your current lender why they think your parents do not qualify for a modification?
Posted on: 17th Apr, 2009 04:40 am
Hi

Your parents ought to be very careful. This can well be a scam. Ask them not to pay any money upfront. A refinance would be good. But with little equity in the property, that option might not work. Did you ask your current lender why they think your parents do not qualify for a modification?
Posted on: 17th Apr, 2009 04:42 am
we have a 1977 moblie home on our own land. we added an addition after putting the mobile on concert pillers and strapping it (no foundation). our home is basically a house now with all the updates and remodeling we've done over the last 28 years. we feel trapped because we cannot get a lender to finance it. if we wanted to sale it where would a potential buyer get a loan. is our home worth anything when we can't get a home equity loan either?
Posted on: 17th Apr, 2009 08:31 am
i only owe 20,500 balance on my mobile home loan. I am currently paying 7.783 interest. I would like to refinance at a lower rate and pay it off in 5 years as I was layed off at the end of January 2009. I am 69 years old and collecting social security.
Posted on: 17th Apr, 2009 05:09 pm
Loan for a Mobile Home in an established Senior community - could we fill out an application to see if we qualify? 530-622-2019

frednpaulette@ comcast.net
Thanks for Your Help!
Posted on: 17th Apr, 2009 05:42 pm
my credit score is around 600 the house is in my ex-husband and my name we are divorced i have been making payments since 2000. could i refinance in just my name only.
Posted on: 18th Apr, 2009 06:56 pm
REFINANCE DOUBLE-WIDE ON LEASE LAND IN MY NAME ONLY WITH CASH OUT
Posted on: 18th Apr, 2009 06:58 pm
How can i get a loan for a home with very bad credit?
Posted on: 19th Apr, 2009 12:37 pm
Page loaded in 0.234 seconds.