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:


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:
Hi Karen,

Welcome to MortgageFit Forums.

Our Community has a group of lenders offering a wide range of home financing options. And, you can easily choose the one you prefer for your mobile home.

But for that you need to sign up with us. As soon as you sign up with us, your loan request will be sent forward to our Loan Department and they will contact you as soon as possible.


Posted on: 18th Apr, 2006 09:39 pm

I'm interested in purchasing a Mobile Home in an Ocean Front Camping Resort. My credit is horrible, I know that the value of the property will not depreciate due to the location, it is in Myrtle Beach S.C. one of the fastest growing areas in the country. What are my chances of getting 100% financing ?

Signed : Desparate Dan
Posted on: 19th Apr, 2006 09:53 am
Hi Dan,

Welcome to MortgageFit Forums.

I would like to know how low is your credit score and the reason behind it. Why don't think of purchasing an apartment or a condo with 100% financing?

It is very difficult to get 100% financing on a mobile home with poor credit. I shall advise you to wait for some time and improve your credit score. This can be done with time and little effort on your part.

You may look for some sub-prime lenders to check if you can get an option but the rate will be quite high even if you get under this condition.

God bless you.

For Mortgagefit,
Posted on: 19th Apr, 2006 11:12 am
Hi , i have a credit score of 571 and i was late on 3 credit cards which have been charged off in 2000 and late 1999 and had a repo in early 2001, all this happen when my mother git sick and i was using most of my income to help her, anyways for the past 3 years since about mid 2003 i have been paying all my bills, 3 new credit cards and a car loan on time. i want to try to buy a new mobile home but i am wonding if with my credit score being only 571, should i wait at least anther year. See also my mobile home i have now, (which was a gift from my step dad who pass away), is in a park that is closing in a yr and i was hoping to get a new home.I am just trying to see if with my credit score and with my mobile home having a trade in value of about 11000 for a down payment, if at all i could get a loan, ANY ADVISE would be welcome, thank you
Posted on: 30th May, 2006 02:53 pm
Hi Billy,

My sister closed on a new home with a score of about 570. They were required to put 30% down because of the score.

They could manage with money they got by selling another house. So, you too might qualify for a mobile home loan but the down payment requirement may be high.
Posted on: 30th May, 2006 03:06 pm
Hi Billy,

It's not easy to get a mobile home loan with a poor score. A score of 620 can be considered good for applying.

But you will find lenders to grant you a loan with a score of 570. May be you will have to make a large down payment and you won't get the convenient rates.

In my opinion you can wait for sometime and then apply so that you get better rates and options with your scores up.

If you wish to go ahead and buy now then, do some shopping around to find a lender with convenient rates. You can also sign up with this MortgageFit Community to help you find a suitable lender.

Posted on: 30th May, 2006 03:25 pm

We have a 1985 single wide home on 5 acres of land in Washington state. The mobile home is on a permanent foundation and the title is eliminated. We currently have an FHA 30 yr assumable loan on the mobile and the property. We are looking to sell and relocate, and wondered if the seller could assume our 1st loan and then get a 2nd mortgage on the single wide since the 1st mortgage has an interest rate that is below market rate? Are there any lenders that will do a 2nd mortgage on a single wide mobile on owned land?

Thanks for any help!
Posted on: 29th Jun, 2006 07:42 am
Hi, Tim

Welcome to MortgageFit Forums.

Our Community has a group of lenders offering a wide range of home financing options. And, you can easily choose the one you prefer for your mobile home.

You need to do a no obligation loan sign up with us. As soon as you sign up with us, your loan request will be forwarded to our Loan Department and they will contact you as soon as possible.


Posted on: 29th Jun, 2006 07:56 am
Often I find that modular homes and mobile homes are mentioned side by side. Are they same?
Posted on: 28th Jul, 2006 04:51 pm
No they are different. Mobile or manufactured homes are always built maintaining the HUD and it doesn’t matter where it’s going to be delivered.

A modular home is built according to the building codes required at the specific location where it will be delivered to.

Posted on: 28th Jul, 2006 05:00 pm
have doublewide on two acres, filed bankruptcy 2002 discharged 2003
chapter 7, husband credit score is bad still 599 maybe, never been late on payment, last three years payment has been on time, we have a 5year adj. loan wont on 15 fixed house payment has always been on time can you help?
Posted on: 31st Jul, 2006 11:56 am

It's a good thing that you have always made timely payments. Lenders do consider this while approving the loan. Anyway, you can go through the directory of Ranked Lenders at this Community and search for the lender who can suit your requirements.

Posted on: 31st Jul, 2006 08:49 pm
Posted on: 31st Jul, 2006 09:01 pm

I need help finding a mortgage lender for a mobile home in a rented lot in NJ. I filed bankruptcy and was discharged Sept. of 2005. My credit score is around 680 now and I already have been building my credit up with 2 credit cards which I owe less than $200 on. I have been at my job 4 years and make about $45k a year. My fiance makes the same but has poor credit.

What is the best way to try to qualify?
Posted on: 19th Nov, 2006 04:14 pm
Hi Barb,

Since your property is located in a rented lot, it is considered as personal property. In that case, you need to look out for personal property loans instead of mobile home mortgage loans.

Your score is fair enough to help you qualify for the loan. Only it is the bankruptcy that can affect getting your credit, as it will stay on your credit report for at least 7 years from the date of filing. Even then, you can qualify for the loan as you have started to build good credit.

I think you should look out for companies offering personal property loans or personal loans for mobile homes. The interest rates on such loans are higher than mortgages. And, you are required to put forward a down payment of 10% with the remaining purchase price being financed through a loan having a total repayment period of 10 to 15 years.

Posted on: 19th Nov, 2006 07:52 pm
Page loaded in 0.142 seconds.