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:
Hi Rar,
Is there a mobile home on the land? If it does not have a mortgage, but has enough equity, you can go for a home equity line of credit or heloc. By the way, what's your financial situation like? What's your credit score?
Is there a mobile home on the land? If it does not have a mortgage, but has enough equity, you can go for a home equity line of credit or heloc. By the way, what's your financial situation like? What's your credit score?
hi i have several acres of land that is going to be deeded to me when it is i want to purchase a double wide with an fha loan and put it on a foundation what are all the fha requirements and also my husband doesn't have good credit but he has never been late on the trailer we have now in 13 yrs and he has been at his job 13yrs. i however have good but overextended credit but have only been in the current job for 7mnths but i have been in the same line of work for 13yrs.
we found a 1999 valley quality home. it is a triplewide. 2702sq ft. private seller. he wants $50,000 for it. the home sells for 135,000.00 new. the problem is our credit union will not loan on the mobile home if not on a foundation, we have a half acre with an older doublewide on it. we want to replace the older one with the newer one. My husband did chapter 13 about 6yrs ago. been 3 years since it has been done. we also own a rental home with a mortgage on it.
can you help us? we live in eastern oregon
can you help us? we live in eastern oregon
want to buy a 1977 mobile home on 4.5 acres. it is next door to us and we want to "share ownership:|" with our son untill he can make it alone. what are our options? we would rather borrow against that property because it is worth at least 200K and we would be borrowing alot less. Our house was never financed except for a home eguity loan(balance,14K) its valued at at least 450K would he if we "co signed" 1/2 owner... qualify for A FHA loan? I understand that no one is givung financing to Investment properties with mobiles <Is that true? WE may have to Borrow against our house. but his name wouldn't be on it
If the loan is in your name, then your son will not be liable for paying off the debts. Yes, financing investment properties have become difficult these days. You can check out with a FHA lender whether you qualify for a FHA loan or not.
Hello,
My husband and I own a doublewide in a trailer park. We would like to move it to a peice of land and put it on a basement/foundation. However we are having a terrible time finding someone to finance it. No one locally will do it. We live in SD. If you have any suggestions on where I might go to find someone who will finance this, I would greatly appreciate it. Thank YOu
My husband and I own a doublewide in a trailer park. We would like to move it to a peice of land and put it on a basement/foundation. However we are having a terrible time finding someone to finance it. No one locally will do it. We live in SD. If you have any suggestions on where I might go to find someone who will finance this, I would greatly appreciate it. Thank YOu
You will find difficulty in getting financing because your property is not attached to the land. Lenders do not give loans for such type of properties. Look out for personal property loan. I guess that's your best bet.
I am wanting to get a construction loan to add on and totally redo the 1990 mobile home that my husband and I are living in, our credit and salary are not an issue. We were just trying to find out if it is possible to get a construction loan of around 100,000 on a 1990 built singlewide, it does not have underpinning because it was not a requirement when they had bought it.
Hi mkhelms,
I did not understand why you want to take a construction loan on your already existing mobile home. You can take a mortgage on the property rather than going for a construction loan.
Thanks,
Jerry
I did not understand why you want to take a construction loan on your already existing mobile home. You can take a mortgage on the property rather than going for a construction loan.
Thanks,
Jerry
we have a neighbor that has a 2003 single wide mobile home that she is trying to sell.we currently live at home with my parents.we are interested in purchasing this,but we are having problems finding someone to finance this. i have been at my current job for over six years,but i have no established credit. i have a small down payment of a couple thousand dollars can you help us to find a place that will give us this loan
thank you,
torrie page
thank you,
torrie page
Hi torrie,
As you do not have an established credit, lenders won't agree to give you a loan. If your parents have a good credit score, they can take a mortgage in their name and thereby help you in purchasing the property.
As you do not have an established credit, lenders won't agree to give you a loan. If your parents have a good credit score, they can take a mortgage in their name and thereby help you in purchasing the property.
i live in a mobile home with land and i can buy it but my credit isn't good but i haven't mised a rent payment in 3 years. is there anybody that will finance it for me.
I want to purchase a mobile home but have no job. I am currently a full time student and am not working however I get student loan refund checks totaling about 21,000 a year. I currently do pay $600 a month rent for my apartment plus other utilities. Will I be able to get a mobile home loan without a job?
My real estate agent has told us our 1978 double wide on 4.8 acres totally renovated is worth $227,000. We have had a lot of traffic, a lot of interest. The problem is we have a 1970 double wide mobile on the same property. This mobile is also in great condition, we understand it does not add any value. It is just there. We priced the property so that it went off the value of the 1978.
Why are we having a problems finding financing for our buyers, if we are not using the 1970 mobile for any neccessary value to the property? No one can answer this question. They say just because. We have been told if we moved the 1970 off the property, we could get financing. My mom does not have the money or time to split the property. Can we turn the 1970 in to a storage building?
Why are we having a problems finding financing for our buyers, if we are not using the 1970 mobile for any neccessary value to the property? No one can answer this question. They say just because. We have been told if we moved the 1970 off the property, we could get financing. My mom does not have the money or time to split the property. Can we turn the 1970 in to a storage building?
Hi,
To roy,
Though you haven't missed your rent payments, I don't think you will be able to get a loan if your credit score is not good. You will have to improve your credit score first and then apply for a loan.
To jenr,
As far as I know, it will be difficult for you to get a mobile home loan if you do not have a job. You may try for a personal property loan in that case. To know more about mobile home loans, check out the following page:
http://www.mortgagefit.com/mobile-homeloan.html
To Kim,
Do you have a mortgage on the 1970 mobile home? If yes, then you will have to inform the lender about turning it into a storage building. If the lender agrees, then you can proceed further.
Take care.
To roy,
Though you haven't missed your rent payments, I don't think you will be able to get a loan if your credit score is not good. You will have to improve your credit score first and then apply for a loan.
To jenr,
As far as I know, it will be difficult for you to get a mobile home loan if you do not have a job. You may try for a personal property loan in that case. To know more about mobile home loans, check out the following page:
http://www.mortgagefit.com/mobile-homeloan.html
To Kim,
Do you have a mortgage on the 1970 mobile home? If yes, then you will have to inform the lender about turning it into a storage building. If the lender agrees, then you can proceed further.
Take care.