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:
is it possible to get a mobile home financed without land after bankruptcy 13 which was filed on 2/5/2008 and presently is working with our present home lender for a deed in lieu of foreclosure? due to illness i need to move to my parents' property for their assistance with my disabled husband and handicaped daughter. please answer as quickly as possible.
some, it sounds like your situation will work. if you wish to provide me with more information you can call and/or email me. i'm not sure what "blocked in" means, so please elaborate a little bit, if you can.
My husband and I are trying to get a loan to tear down the house we are living at now and put a basement and a modualron your lot. We still owe 27,000 on our lot. My husband does have a VA Certificate. Is there any way you can help us out. Thank you for your time
Sheena
Sheena
I have found land that id like to purchase... i want to purchase land and a mobile home to put on it ... my husband has a credit score of 565... all his bad debts we turned around and paid... now we have a car that we financed at a finance company and have had it for 10 months and hes never been late on the car payment... he has no onther loans besides the car payment... we have to finance in his name because he has a job and i dont... Would it be possible for him to finance 6 acres and a mobile home ? if he can where should he start looking... he doesnt want to run his crediot alot.. he doesnt want his score to go down.. all the bad loans were years ago and as i said have since paid them off... hes never filed bankrupt and hes never owned a home... we would like to own our own home ... plz help
Thanks :l
Thanks :l
oh and i meant to add.. i wanting a loan for about 50,000 for the land and the mobile home... i meant to say my husbands middle score is 565... he actually has 565 565 579 ... help pla email address is "n.welch143@yahoo.com"
[Email address deactivated as per forum rules]
[Email address deactivated as per forum rules]
Hi
A 565 credit score isn't good enough to get a loan at affordable rate. A minimum of 600+ credit score is what the lenders look for now a days. So, getting a loan won't be easy for your husband. My suugestion to you would be to wait for some time and build your credit. Keep making the car payments and other bills and save some money for a downpayment of at least 3.5%. Once your credit score gets past 620 points, you can apply for an FHA insured Title I loan through which you can finance both the land and the mobile home.
A 565 credit score isn't good enough to get a loan at affordable rate. A minimum of 600+ credit score is what the lenders look for now a days. So, getting a loan won't be easy for your husband. My suugestion to you would be to wait for some time and build your credit. Keep making the car payments and other bills and save some money for a downpayment of at least 3.5%. Once your credit score gets past 620 points, you can apply for an FHA insured Title I loan through which you can finance both the land and the mobile home.
My niece has a modular/mobil home on a rented lot. She paid $60,000 for it...or else owes that much. Now she is out of a job and about 60. Can she get a 'equity loan' on the above or pay interest only until she gets a job?
hi gracie,
your niece cannot get a home equity loan mainly because of the fact that she does not have a job currently. no lender would want to risk their money, unless they are sure that the borrower has a source of stable income like a permanent job etc and he or she can afford the mortgage payments.
thanks,
jerry
your niece cannot get a home equity loan mainly because of the fact that she does not have a job currently. no lender would want to risk their money, unless they are sure that the borrower has a source of stable income like a permanent job etc and he or she can afford the mortgage payments.
thanks,
jerry
My home is a 1996 double wide in a senior park, how and who would I speake to about this, Thanks......Denny
hi, I have found the doublewide that suits all of my needs, i make 4800.00 a month before taxes, have a FICO of 752. what is an average loan rate % for a double wide, the dealer does financing and he quoted me a payment that i figured to be over 9%. Are mobile home loans usually this high? I see offers of rates @ 5% for home mortages. What gives? I really am afraid to apply and have my credit checked, then have to reject the offer and sustain a 5 point loss on my FICO score of 752.
What if you own the land, but want to get a loan to buy the manufacured home. IS there a loan built for that? :?
i would like to refinance my 1999 double wide for multiple reasons: shorter loan term, better % rate, and cash for home imprevements. i divorced and bankrupted in 2000, that is off my record now but my fico score in still only 600-660 depending on which one used. my loan is held by a venture company that does not report to a credit agency so it is not on my credit history. i have not had a late payment on my house in over 8 years. can i qualify to do what i need to do? or am i out of luck...
thank you.
thank you.
I have filed chapter 7 bankrupcty. I would like to buy a piece of property with a manufactured home. With 20,000 down, is there a bank out there, that would fiance me?
Can someone borrow the money to purchase a mobil home with the land? The mobil home has a foundation and ready to sell. please advise as soon as possible.
Hi
To lazysusanlampwork,
If the lender quoted you a 9% interest on the mobile home loan, then I must say its way too high. Your credit score is good. If you have adequate income and a good payment history, you should get an interest rate much lower than that. You can choose to go for the FHA backed Title I loan to purchase the mobile home. It requires a low down payment of 3.5% and offers a much lower interest rate. You can approach a local lender approved by the FHA to know more on this loan program.
To S.G,
There are obviously lenders who can help you purchase the mobile home. That you hold the title to the land free and clear, may actually help you in qualifying for the loan. What is your credit score? Do you have any other debts?
To jcw,
" my FICO score in still only 600-660 depending on which one used"
The lenders use your middle score while approving your loan. What is your middle score? Youve mentioned you dont have any late payments on your credit which is good. But do you have any other negative items on your credit like a foreclosure or a charge off etc? If the answer is no, you have a good chance of qualifying for a refinance.
To lazysusanlampwork,
If the lender quoted you a 9% interest on the mobile home loan, then I must say its way too high. Your credit score is good. If you have adequate income and a good payment history, you should get an interest rate much lower than that. You can choose to go for the FHA backed Title I loan to purchase the mobile home. It requires a low down payment of 3.5% and offers a much lower interest rate. You can approach a local lender approved by the FHA to know more on this loan program.
To S.G,
There are obviously lenders who can help you purchase the mobile home. That you hold the title to the land free and clear, may actually help you in qualifying for the loan. What is your credit score? Do you have any other debts?
To jcw,
" my FICO score in still only 600-660 depending on which one used"
The lenders use your middle score while approving your loan. What is your middle score? Youve mentioned you dont have any late payments on your credit which is good. But do you have any other negative items on your credit like a foreclosure or a charge off etc? If the answer is no, you have a good chance of qualifying for a refinance.