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:
my wife and i are intrested in buying a mobil our credit score are very low right @ 500 but most of the things on the credit report is repeated or says charrge off and we have paid that loan in full and we have the title will any one be able to finance us in Texas?
I would like to re fi my mobile home but I would like to know what the requirements are for it to be hud approved.my trailer was built in 76. I have had a new roof and a new windows put in. but I need to know what else I can do to get it hud approved. thank you
Hi Scp,
I think your credit report isn't updated. Otherwise, why wouldn't it reflect a better score if you have paid the charge-off. If you think there's a problem with your report, you need to contact the credit bureaus and dispute the errors in your report. If required, talk to the creditors, pay off unpaid debt, and then remove the charge-off. After you dispute the inaccurate details, check your credit score again. If it is above 620, only then you can qualify for FHA mobile home loans. Otherwise, I'd suggest that you look out for personal property loans.
Hi Shantelle,
To check if your mobile home confirms to HUD requirements of building standards, just browse through the information available at http://www.mortgagefit.com/mobile-homeloan.html#qualify .
Hi Ann,
What type of a refinance mortgage are you looking for? Have you thought of any option as such? There are a variety of loan programs available. You can choose the FHA loan if you don't have any negative items such as collections, late payments and charge-offs on your credit report for past 1 year. But what's your credit score like?
The FHA has recently amended its credit score requirement to minimum of 620. However, you are free to explore conventional loan programs like the 30 year fixed rate mortgages or 15 year loans and the like. Just feel free to attend a no obligation free consultation with our community lenders who can guide on the right kind of mortgage that will suit you best.
Regards,
Jessica.
I think your credit report isn't updated. Otherwise, why wouldn't it reflect a better score if you have paid the charge-off. If you think there's a problem with your report, you need to contact the credit bureaus and dispute the errors in your report. If required, talk to the creditors, pay off unpaid debt, and then remove the charge-off. After you dispute the inaccurate details, check your credit score again. If it is above 620, only then you can qualify for FHA mobile home loans. Otherwise, I'd suggest that you look out for personal property loans.
Hi Shantelle,
To check if your mobile home confirms to HUD requirements of building standards, just browse through the information available at http://www.mortgagefit.com/mobile-homeloan.html#qualify .
Hi Ann,
What type of a refinance mortgage are you looking for? Have you thought of any option as such? There are a variety of loan programs available. You can choose the FHA loan if you don't have any negative items such as collections, late payments and charge-offs on your credit report for past 1 year. But what's your credit score like?
The FHA has recently amended its credit score requirement to minimum of 620. However, you are free to explore conventional loan programs like the 30 year fixed rate mortgages or 15 year loans and the like. Just feel free to attend a no obligation free consultation with our community lenders who can guide on the right kind of mortgage that will suit you best.
Regards,
Jessica.
on a loan of 33 what are my closing cost :shock:
My husband has been laid off 6 months ago and I'm a stay at home mom. We own a home that is worth below what we owe on it. My husband recently opened a business that is 2 hours away from our home. We are thinking of renting our current home and purchase a mobile home close to where my husband's business is. We want to know what are the chances of us getting a loan considering we haven't really make a significant income from the business yet.
Thank you in advance for your answer and suggestions.
Cary
Thank you in advance for your answer and suggestions.
Cary
my wife n i are trying to by a 1989 doublewide in a park the price is great but i have a credit score of 580 and she just started estblishing her credit a year ago.is it possble to get a loan
Hi
Guest, different lenders charge different amounts of closing costs. Thus, it is difficult for me to say how much you will have to pay for the closing costs. You should check this with your lender.
Hi
wontonsoup, getting a new loan with no significant income will not be easy under present market condition. If your credit score is very good, it will work in favor of you. But you will still be required to have a significant amount of income to qualify. However, you can look out for a stated income loan. But getting such a loan at present will be tough.
Guest, different lenders charge different amounts of closing costs. Thus, it is difficult for me to say how much you will have to pay for the closing costs. You should check this with your lender.
Hi
wontonsoup, getting a new loan with no significant income will not be easy under present market condition. If your credit score is very good, it will work in favor of you. But you will still be required to have a significant amount of income to qualify. However, you can look out for a stated income loan. But getting such a loan at present will be tough.
Hi jeff,
Due to the economic depression, the mortgage industry has changed a lot. What used to be a good credit score is no longer considered good enough to qualify for a loan. A credit score of atleast 600+ is required now a days to get a loan offer at an affordable rate. You can, however, get a no-obligation free mortgage consultation with the lenders in this community. Some of them may be able to offer you a loan at a good rate and terms.
Thanks,
Jerry
Due to the economic depression, the mortgage industry has changed a lot. What used to be a good credit score is no longer considered good enough to qualify for a loan. A credit score of atleast 600+ is required now a days to get a loan offer at an affordable rate. You can, however, get a no-obligation free mortgage consultation with the lenders in this community. Some of them may be able to offer you a loan at a good rate and terms.
Thanks,
Jerry
I want to purchase a 3 bedroom modular home that is already on a lot in a nice park.How do I go about doing that and at what bank? I have tried my own bank but it has to be on your own land. Can you please contact me soon as possible.Thankyou.
I need a loan for a manufactured home in a 55+ community. I have 20% down money. The lot rent is 270.00 a month. Can you put me in touch with a couple of lenders? Thank You! I live in Manheim, Pa. 17545
is there any help on downpayments
Hi Tasha and V. Becker,
If you want to get a mobile home mortgage loan, the lenders would want you to be on the title to the land. If you do not own the land, it may be difficult to get a morgage loan. In that case, I think you should go for a personal property loan. This does not require you to own the land. If you have the title to the mobile home and a good credit and income, you can qualify for such a loan.
However, there are some lenders in this community who you can do a no-obligation free consultation with to know what kind of loan program will best suit your situation. If your profile matches their requirements, they will offer you free mortgage quotes as well.
If you want to get a mobile home mortgage loan, the lenders would want you to be on the title to the land. If you do not own the land, it may be difficult to get a morgage loan. In that case, I think you should go for a personal property loan. This does not require you to own the land. If you have the title to the mobile home and a good credit and income, you can qualify for such a loan.
However, there are some lenders in this community who you can do a no-obligation free consultation with to know what kind of loan program will best suit your situation. If your profile matches their requirements, they will offer you free mortgage quotes as well.
Hi
One of the main obstacles to home ownership is down payments and closing costs. There were down payment assistance programs like Ameridream, Nehemiah which offered downpayment assistance of upto 6% to homebuyer. But things have changed now and these programs are currently not available. So, low-down payment mortgages are now a good alternative.
One of the main obstacles to home ownership is down payments and closing costs. There were down payment assistance programs like Ameridream, Nehemiah which offered downpayment assistance of upto 6% to homebuyer. But things have changed now and these programs are currently not available. So, low-down payment mortgages are now a good alternative.
Hi. My husband and I had a Ch. 7 bankruptcy four years ago. All that we effectively did away with was credit card debt. We kept the house. Now with the economy so tight and our budget stretched past the point of breaking, our house is killing us. We have talked to our local realtor, and he feels pretty confident that we can sell and get what we would have to have to pay the mortgage company, even fairly quickly in his opinion.
We are considering buying a single-wide mobile home because there is just the two adults plus one child. We can put the home on hubby's brother's land or my parents' land. However, with the bankruptcy and several Credit Card and Medical bills in collections (not enough money for everything for the last several months; again, that's the point of selling the house - to free up money), will that even be possible? Is there anyone out there who makes a loan on a credit risk like that?
We are considering buying a single-wide mobile home because there is just the two adults plus one child. We can put the home on hubby's brother's land or my parents' land. However, with the bankruptcy and several Credit Card and Medical bills in collections (not enough money for everything for the last several months; again, that's the point of selling the house - to free up money), will that even be possible? Is there anyone out there who makes a loan on a credit risk like that?