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:
to tmbrown,
do you mean you want to purchase the mobile home and pay off the existing loan on it? have you contacted the actual owner of the home? what is the balance on the existing mortgage? do you qualify for a loan? what are your credit score and approximate income?
to rodney,
a 9.75% interest rate is too high. you ought to look for ways to refinance into a lower rate. your lenders will check various factors before offering you a loan. you haven't mentioned your credit scores. what are your scores? the refinance will involve closing costs. have you saved for those costs? have you been current on your existing loan?
to barnacle,
it's a good idea to get a mortgage on your manufactured home and pay off the home equity loan on your primary residence. if the mobile home is paid for and you hold the title free and clear, there should not be any problem in refinancing. how good is your credit score? do you have some down payments ready? what is your dti ratio?
do you mean you want to purchase the mobile home and pay off the existing loan on it? have you contacted the actual owner of the home? what is the balance on the existing mortgage? do you qualify for a loan? what are your credit score and approximate income?
to rodney,
a 9.75% interest rate is too high. you ought to look for ways to refinance into a lower rate. your lenders will check various factors before offering you a loan. you haven't mentioned your credit scores. what are your scores? the refinance will involve closing costs. have you saved for those costs? have you been current on your existing loan?
to barnacle,
it's a good idea to get a mortgage on your manufactured home and pay off the home equity loan on your primary residence. if the mobile home is paid for and you hold the title free and clear, there should not be any problem in refinancing. how good is your credit score? do you have some down payments ready? what is your dti ratio?
WHAT DO I NEED TO DO TO GET A LOAN ON 65,000 PURCHASE
To brenda,
There are lenders in this communiyt who can hel you with a loan to purchase the home. But you need to disclose a little more information so they can help you. What are your credit scores and approximate income like? Are you going to buy only the home or the land as well? how much down payment have you saved?
There are lenders in this communiyt who can hel you with a loan to purchase the home. But you need to disclose a little more information so they can help you. What are your credit scores and approximate income like? Are you going to buy only the home or the land as well? how much down payment have you saved?
My mother in law who lives in AZ wants to buy a house for me and my husband and we live in TN. Can she buy the house for us? The manufactured home sits on 11 acres with a permanent foundation. It was built in 1993. Her credit is perfect but ours isn't so we wouldn't be on the loan just her. We love this property and are having a hard time finding someone to do financing for us since she lives out of state. If you can't help can you please tell me of someone who can? We want to start a family and this would be the perfect the perfect area. Thanks
Ihave a 1997 single wide mobile home in a park. When I first got my mobile home I had just come out of a messy divorce. My credit was not good at all, so I ended up with a high interest rate. I have been paying for 9 years on this loan and I'm sure what I'm paying now is all interest. I really need to get my payment down to an affordable rate. Could you point me in the right direction?
I forgot to mention my credit score and my work history. My credit score now is 630 and I was at my last job for 5 years and my current job for almost 4 years.
Hi Sassy,
Since your mother-in-law lives out of the state, it will not be considered as her primary residence and the lenders won't be willing to offer residential mortgage on it. How bad is your credit? Is it not possible for you to be the primary borrower, with your mother-in-law co-signing on the loan?
You may also seek a no-obligation free mortgage consultation with the community lenders. They will be able to tell you if your mother-in-law can qualify for a loan to make the purchase, even though she's out of state. They will also be able to assist her in choosing the right kind of mortgage that will suit her and your requirements.
Hi Gram,
You can refinance the mobile home and take advantage of the low rates. You have got a good credit score, though not excellent. Your work history is also good. Do you have any derogatory items on your credit like late payments etc? Have you saved some money to pay for the closing costs during the refinance?
Thanks,
Jerry
Since your mother-in-law lives out of the state, it will not be considered as her primary residence and the lenders won't be willing to offer residential mortgage on it. How bad is your credit? Is it not possible for you to be the primary borrower, with your mother-in-law co-signing on the loan?
You may also seek a no-obligation free mortgage consultation with the community lenders. They will be able to tell you if your mother-in-law can qualify for a loan to make the purchase, even though she's out of state. They will also be able to assist her in choosing the right kind of mortgage that will suit her and your requirements.
Hi Gram,
You can refinance the mobile home and take advantage of the low rates. You have got a good credit score, though not excellent. Your work history is also good. Do you have any derogatory items on your credit like late payments etc? Have you saved some money to pay for the closing costs during the refinance?
Thanks,
Jerry
I need to find a lender who will finance a mobile home for me. My credit score is above 550 due to hospital collections. I have no late payments on my mortgage or truck note. Help me find someone please
I am having problems finding a place to get a loan on a 1986 trailer with a full foundations on 3 acres of land. I'm finding most place won't finance this...where can i go to get a loan? Also, I have no money saved for down payment/closing costs
I HAVE FOUND A 2002 SINGLE WIDE THAT I NEED FINANCING FOR. PLEASE ADVISE WHERE I COULD FIND FINANCING.
i need some kind of a home improvement loan so i can replace the roof of my house. in florida you can't get a home equity loan on a manufactured home. help
I would like to know what to do!Me and my husband pay $500.00 dollers in rent but I found a mobile home for $16,900 and would like to buy it. The problem is that our credit score was 475 and we paid somethings off to try and rebuild it. I would like to know were to get a decent loan for about $18,000 because we have to move it also.
Hi everyone!
I am looking for a Title 1 lender for a new or used mobile home in California. Home only on leased (employer supplied) land.
I downloaded the "approved" Title 1 lender list for California from the HUD website (260 lenders listed). I have called about 20 so far. They ALL say that NOBODY does Title 1 loans. Some mention extra hassles, not very profitable, nobody to buy the loan etc.
I called the FHA 1-800-callfha. I asked for the names of some lenders who have actually submitted a Title 1 loan to them over the last few months. They say they don't keep that info! Does anybody know anyone who is actually making these loans?
I am looking for a Title 1 lender for a new or used mobile home in California. Home only on leased (employer supplied) land.
I downloaded the "approved" Title 1 lender list for California from the HUD website (260 lenders listed). I have called about 20 so far. They ALL say that NOBODY does Title 1 loans. Some mention extra hassles, not very profitable, nobody to buy the loan etc.
I called the FHA 1-800-callfha. I asked for the names of some lenders who have actually submitted a Title 1 loan to them over the last few months. They say they don't keep that info! Does anybody know anyone who is actually making these loans?
Our mortgage is with Vanderbilt and we are looking for some help. We are behind. uwhirl90@sccoast.net this my email address
Hi we currently live in a 1999 doubble wide mobile in a one acre lot land the moblehome is finance in someone elses name we have been making the payments to the finance company for six years and the land payment to the individuale who has the financing of the mobilehome and the reason it was done this way was due filing a chapter 7 and our credit not in great shape we could not get financing on our name. My husband and I make about 65,000 a year my husband has work in the same place for six years I just currently started doing contract work but had been in my previous job for 6 years we know would like to finance our mobilehome and land in our name do you think it would be possible to finance it on our own our land has much higher value than what is owed on it