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:
tonya, you will find it quite difficult to obtain a loan for the sole purpose of purchasing land. barbara, it would be beneficial for us to know where you are intending to purchase (state).
What is an assumption loan for a mobile home, and can a park manager just negate it because we asked too many questions?
wow.
anyone who would negate anything for someone having "asked too many questions" ought to be someone you wouldn't want to transact business with, anyway.
anyone who would negate anything for someone having "asked too many questions" ought to be someone you wouldn't want to transact business with, anyway.
We found the house of our dreams in the county that was foreclosed but being sold "AS-IS". The house has 3 broken pipes because the previous owners did not winterize it and some very minimal mold in the basement from a water leak from a downspout. Our loan is and FHA loan and the bank that owns the home wont let us in to fix anything so FHA is not going to work. We were then approved for a conventional loan and they then told us they can only cover 80 percent because the house is manufactured. Our closing date is in 11 days and we cant get a lender and the house is going to be put back on the market. We dont have the other 20 percent neded for the conventional ! What can we do? we are almost out of time.
my crdit score isnt high enuf to finanace a amobile home hoe can i find an ownre finace that i can put on my propoerty that is morgaged and cant be used as collatreal
I don't think you would get a owner financing. You should first try to improve your credit score and then look for loans.
talk to your lender.
I have a m.h thats been built around on a concrete foundation.This is a lake front property.Sq. footage is 1700. I cant find anybody who wants to refi. on this.My credit score is 790. Please help me locate somebody to help me get out of this arm.
Hi offshorewarrior
Did the lenders give you any reason as to why they won't refinance your property? The credit score that you have mentioned is good enough. You may try speaking to the lenders of this community and seek a no obligation free consultation from them. This will let you know what type of rates you can expect to get.
Thanks.
Did the lenders give you any reason as to why they won't refinance your property? The credit score that you have mentioned is good enough. You may try speaking to the lenders of this community and seek a no obligation free consultation from them. This will let you know what type of rates you can expect to get.
Thanks.
can help still be available for someone on bankruptcy
We bought a doublewide two years ago and remodled it...and added an addition. Our big mistake..or one of them was to use our credit to add the addition. Our scores went from the mid 700's to mid 500's. All from maxed out credit cards and loc's. The second big mistake was not getting the pillars (msp?) on the dw done to meet FHA standards. We want to refinance the home and land with cash out to pay off some of the credit we used to build...which would help the credit scores. The addition alone is over 2k sq ft. It's value alone is around $134k. But with the dw attached it's worth about the same..maybe a little more. We had an appraiser look at it and gave us the value. We owe $77k on the land (24 acres). My husband has worked at his job for about 10years and has a good salary.. I'm working as a temp right now. Guess that doesn't help eh? Anyway..are there any options that you know of?
Welcome,
To helpless,
It would be better if you could give further details about your situation. This will help me in answering your query in a better way.
To Wondering,
If you have good credit score and if your financial situation is good, then you can apply for a loan and qualify for it. But your property has to meet the required standards. If your property does not meet the required standards, then it would be difficult for you to refinance it.
To helpless,
It would be better if you could give further details about your situation. This will help me in answering your query in a better way.
To Wondering,
If you have good credit score and if your financial situation is good, then you can apply for a loan and qualify for it. But your property has to meet the required standards. If your property does not meet the required standards, then it would be difficult for you to refinance it.
my husband and i have found a double wide mobile home we want to purchase. I am on disability. He is a farmer. We do not own the land he farms. i need a loan with a fixed rate. i am wondering if there are any loans available to us. i need to know asap. thank you.
Hi
Do you have a good credit score? Due to the current market situation, the lenders now require you to have a good credit score to offer you loan. You can seek a no-obligation free consultation from the community lenders. I think they would be in a better position to help you in this regard.
Do you have a good credit score? Due to the current market situation, the lenders now require you to have a good credit score to offer you loan. You can seek a no-obligation free consultation from the community lenders. I think they would be in a better position to help you in this regard.