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,
to charles,
getting a refinance for your mobile home will depend upon the equity in the property, your credit score and income. you can contact your current lender and check out if he is ready to refinance the mobile home. you can even contact the other lenders of your area and check out their rates and terms.
to telam,
as your credit score is 0, i don't think lenders would be ready to work with you. you will first have to build your credit and then start looking for loans.
thanks
to charles,
getting a refinance for your mobile home will depend upon the equity in the property, your credit score and income. you can contact your current lender and check out if he is ready to refinance the mobile home. you can even contact the other lenders of your area and check out their rates and terms.
to telam,
as your credit score is 0, i don't think lenders would be ready to work with you. you will first have to build your credit and then start looking for loans.
thanks
I need to find a lender for a mobile home that is NOT on a permenant foundation but is on 1/3 of an acre. My credit is not good due to some past problems that were not in my control. My credit score is in the low 500's . I do have an excellent work history though. I do not have a co-signer so please do not suggest one. I need help.
I have "Gold Bricks" credit rating. I am purchasing a new mobile home to put on a lot that I just purchased. The lot is developed with power, well and septic. Once I buy the lot, my cash reserves sink to near zero. Can the lot be figured into the loan so that it shows as a substantial down payment?
This brand new 1550 sq ft home will be put on a permanent foundation. What would you recomment as a place to aqquire financing on this home?BTW, it will be owner occupied. One more question, do MH qualify for the $8k tax deduction?
This brand new 1550 sq ft home will be put on a permanent foundation. What would you recomment as a place to aqquire financing on this home?BTW, it will be owner occupied. One more question, do MH qualify for the $8k tax deduction?
I don't think the lot will be figured into the loan. As far as tax deduction is considered, I think you will get it. But it would be better if you could consult a tax adviser.
A friend of mine owns a mobile home in Massachusetts which is located on leased property. He is looking to take an equity loan on the home which is currently valued around $100,000. He is having difficulty finding a lender in Massachusetts willing to finance a mobile home. His credit rating is superior. Any guidance would be appreciated.
My credit is challenged. I am hoping to purchase a mobile home, pre-owned, and need a small loan to make that happen. Where can I go?
Welcome,
To Stacey,
As the property is located on a leased land, I doubt whether your friend will be able to get a loan. In my opinion, your friend should try for a personal property loan in this case. Your friend can contact a realtor who sells mobile homes and can get a personal property loan from him.
To SueS,
It will be difficult for you to get a loan if your credit is not good. You haven't mentioned your credit score. In order to get a FHA loan, you will require a credit score of 620 whereas to get a conventional loan you need to have a credit score of 700.
To Stacey,
As the property is located on a leased land, I doubt whether your friend will be able to get a loan. In my opinion, your friend should try for a personal property loan in this case. Your friend can contact a realtor who sells mobile homes and can get a personal property loan from him.
To SueS,
It will be difficult for you to get a loan if your credit is not good. You haven't mentioned your credit score. In order to get a FHA loan, you will require a credit score of 620 whereas to get a conventional loan you need to have a credit score of 700.
I have been paying on my land and mobile home mortgage for over ten years with a perfect payment history. I owe $35,000 with an estimated value of $60,000. My interest is 10%. I want to refinance for 20 years with lower interest and I would like to add $2,500 to loan for improvements. Who would be best to handle this?
Hi merle!
Welcome to forums!
You can contact your present lender and check out the option of refinance. You can also contact the other lenders of your area and see what type of rates and terms they are offering you. However, you should note that the lender will check your credit score and income before approving the refinance.
You can contact the lenders of this community and seek a no obligation free mortgage quote from them. This will help you in knowing what type of rates and terms you can expect to get.
Sussane
Welcome to forums!
You can contact your present lender and check out the option of refinance. You can also contact the other lenders of your area and see what type of rates and terms they are offering you. However, you should note that the lender will check your credit score and income before approving the refinance.
You can contact the lenders of this community and seek a no obligation free mortgage quote from them. This will help you in knowing what type of rates and terms you can expect to get.
Sussane
i'm currently in chapter 13 bankruptcy. i was wondering if i could purchase a new home (manufactured or constructed). due to my current interest rate of 10.5% on my single wide mobile home. i pay more in interest every month than what is acutally going toward the principle of my home. i have like 40.00 per month going toward the principle of my home. is there any way to get from under this home by purchasing a new one with maybe a better interest rate.
I currently have a 1/2 acre property with two manufactured homes on it. The one is a 1970 double wide. The other is a 1999 Fuqua. The note to the Fuqua is in my parents name. I have the property and the 1970 in my name. I moved them to the back of the lot because I see the future need for care. I got the property about 18 months ago from a private lender through a title company. They gave me 5 years to get alternative lending. I would like to get the entire property refinanced now, to benefit from the current low interest rates. Nobody is biting. I have real good credit. So does my wife. We are looking to refianace the entire thing. Both mobiles and the property and we're only looking for 90k. I have been a teacher and coach for 6 years. The job is secure. Is there anyone that will carry this circumstance. I can make the current payments but I want to refinance now for rate, but also so that I am not scrambling to do this in 3 years when I am required to. Any Help?
Is it a HUD requirement for a finance company to require two seperate appraials on a manafactured home or is the finance company just looking for extra profit?
Hi,
To Guest,
As you are presently in Chapter 13 bankruptcy, lenders will not be ready to give you a loan. You'll have to wait for 2 years after the discharge from Chapter 13 in order to get a conventional mortgage and 1 year after the discharge for FHA loan.
To crusader,
As far as the 1999 Fuqua is concerned, I don't think you would face problems in getting a refinance. But as far as the 1970 mobile home is concerned, you will face difficulty in getting a loan as mobile homes build prior to 1976 hardly qualify for loans.
To rjb,
Yes, as far as I know, HUD requires two separate appraisals on a manufactured home.
Thanks.
To Guest,
As you are presently in Chapter 13 bankruptcy, lenders will not be ready to give you a loan. You'll have to wait for 2 years after the discharge from Chapter 13 in order to get a conventional mortgage and 1 year after the discharge for FHA loan.
To crusader,
As far as the 1999 Fuqua is concerned, I don't think you would face problems in getting a refinance. But as far as the 1970 mobile home is concerned, you will face difficulty in getting a loan as mobile homes build prior to 1976 hardly qualify for loans.
To rjb,
Yes, as far as I know, HUD requires two separate appraisals on a manufactured home.
Thanks.
im in my 40's i have $20,000 to put down with my boyfriend my credit score is 600, the mobile home is $70,000 will i be able to get a loan? is it a good move? i wnna but im scared i hear storied from people who say they arent good, i dont plan on reselling it i plan on stayong there
our house is only a couple of years old and we moved it to our 5 acres last summer from our neighbors property. the problem is no one will give us a loan on one that has been moved 2 times. Help please.