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:
having trouble finding a lender for manufactured homes in an existing mobile home park... help :!:
having trouble finding a lender for manufactured homes in an existing mobile home park
Hey i have found a double wide on permenant foundation and 15 acres. In my area there are not many options for a loan to purchase this any ideas of who i could contact to get financing? I have had a few loans on my credit not a ton i am young so havent had much time to build credit. Can you Help??
i purchased a mobile home from a park that did in-house financing 3yrs. ago, everything was fine until i got the bright idea to look for greener pastures in another state after i noticed ours was in a downward spiral. to say the least i got screwed. i moved back, my fiancee could not get his old job back and had to settle for less than half his income and he now works for cash. our credit is under 500 due to late pays,charge-offs etc. i want to move my home into a different park for better schools for my kids and i cannot. even though they have changed my mortgage company 3 times, they say the still own it and will not allow me to remove it from where it currently sits. my only option is to get another company to buy out/ take over the loan so i can move it, but w/our credit and income issues it seems hopeless. i don't know what to do or where to begin. aren't ther lenders specializing in bad credit or asking higher interest, higher down-payments just to be given a chance? my house is only 8yrs. old, just under 2,000 sqft., and i only owe 23k. god, if i did by chance default they should be able to recoup the losses since i know the house is worth that. advice?
I OWN MY 1984 SINGLE WIDE.... WANT TO TAKE OUT A LOAN AGAINST IT TO PAY OFF DEBT... NEED $10K, HOME WORTH $35K
My husband I have found a double wide mobile home on its own land with a 2 car garage. Can we find someone who will finance this. It is 80,000. The only thing is that the home is on piers. It sits on 1.88 acres. My husbands credit score is 786 and he has worked at the same job for 32 years.....................
I AM IN BANKRUPTCY BUT MY MOBLIE HOME IS BARLEY STANDING CAN I STILL GET ANOTHER MOBILE HOME?
i am self-employed...my husband retired. we have a huge interest rate and live in a double-wide on 1.8 acres of property (not a mobile home park). we had to file bankruptcy due to a medical emergency 6 years ago. the bankruptcy has been discharged for either 4 or 5 years. we cannot get our mortgage lender (household finance) to consolidate and refinance our 2 mortgages in order for us to lower our payments. all we need is someone to take a chance on us and just give us a chance. we have lived on this property for almost 40 years. can you help us?
I have a home thats too small for my family. My husband & I are wondering if it's possible to finance a manufactured home & connect it to our current home. Does anyone know how that would work?
i found a mobile home and im trying to get a loan to get the home have my own land i want to pay mobile home off and just pay back the lender just have one bill i work my husband draws ss and we need something now :
We own a manufactured home & lot that we financed with an equity loan on our primary residence. We want to get a mortgage on the manufactured home and pay off the equity loan. We are renting out the manufactured home. We can't find anyone who will take on the mortgage.
i wish to purchase a mobile home but have not yet sold my prorty can you help me
I have a buyer that may need a no income verification on a manufactured home, could you tell me who to contact?
Hi Carol,
How long has your mobile home been listed on the market? Is it in good condition? With the way the economy is at present, it is not easy to find a potential buyer. If your home is listed for a long time with no success, you can lower the sale price a bit and see if it attracts any buyer.
Hi Sandi,
It is difficult to get no income verification loans in this economy. Lenders are more cautious than before while approving loans. Most lenders would not want to offer loans if the borrower cannot show a verifiable source of income. Some lenders may still offer such loans. But the borrower needs to have a very good credit score and a good amount of down payment to qualify for such a loan. What is your buyer's credit score? How much down payment can he/she make?
How long has your mobile home been listed on the market? Is it in good condition? With the way the economy is at present, it is not easy to find a potential buyer. If your home is listed for a long time with no success, you can lower the sale price a bit and see if it attracts any buyer.
Hi Sandi,
It is difficult to get no income verification loans in this economy. Lenders are more cautious than before while approving loans. Most lenders would not want to offer loans if the borrower cannot show a verifiable source of income. Some lenders may still offer such loans. But the borrower needs to have a very good credit score and a good amount of down payment to qualify for such a loan. What is your buyer's credit score? How much down payment can he/she make?