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 husband and I are wanting to get a loan to buy and fix up the mobile home and detacted 2 car garage that we are currently residing in. Both of our credit scores are around 520. We were wanting to use the property that it sits on as our down payment. Is there anything you could do for us?
I had a bankruptcy discharged in January 09 , would I be able to get a mortgage for a new manufactured home on a leased lot. My income combined with my wife's is 65k. Could you give me info on down payment and if 20 or 30 year loans are available? Thanks
Im a first time buyer im 18 i have no credit i have land to put a home on im looking for a possiable used trailor i have $3,000.00 to put dwn on one if u could help me in any way i would really appricate it. Thank You Very Much, Brittany Ellis
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I am a Real Estate Broker/Realtor. I am listing for sale a double wide with a 1 acre land in Texas. Where can I get financing for customers on this?
Thank you.
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Thank you.
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my mother ownes the mobile home and the land in which her mobile home is located. i have lived in it for 9 years and i am macking the payment on it . because of the road frontage we cant split the land. my question is can i get a loan on the mobile home to get it out of her name with out having any land as collatiral? i dont plan on moving it. it is a 2001 double wide
I have a vet who would like to buy my 1985 double wide mobile on a city lot. It is not on a concrete foundation but strapped down as required at the time. Will a full foundation be required for a VA loan for this home to be eligible for this vet to get a VA loan. We are located in Washingto state
we are wanting to buy a manufactured home that is already in a trailor park. Is there any loan out there that we can get for that? Or does it have to be a manufactured home we buy and then put on the lot?
to mknapp,
in case you are planning to get a mobile home mortgage loan, you need to have a home that has a fixed foundation and you also need to own the land. bu if you want to buy a mobile home that is already in a trailer park, you have the option of going for a personal property loan, also known as chattel loans. though, the interest rate on such a loan would be higher than that on a mobile home mortgage loan.
to duderone,
as far as im aware of, the mobile home needs to have a permanent foundation to qualify for an fha or a va loan. what fha or va offers is mobile home mortgage loans, which requires the property to be based on a permanent foundation. if the property doesnt have a permanent foundation, he can go for a personal property loan. however, it be worth his while to consult a va-approved lender regarding this.
to dogonbad,
you can get a mobile home loan as long as you have good credit score and can afford the payments. you can also refinance the loan in your name to remove your mother from the current loan. you dont need to put your land as collateral for this purpose. however, you do need to put a minimum amount of down payment to qualify for a loan. if you have 620 or more credit score, you can apply for fha title 1 loan. it requires you to put down 3.5% only.
to hugo sanchez,
is the home based on a permanent foundation? how good is your customer,s credit? how much can they put down on the loan? all these factors are taken into consideration by a lender before approving a loan. so, can you disclose some more information so that i can give a specific answer to your query and guide you in the right direction?
in case you are planning to get a mobile home mortgage loan, you need to have a home that has a fixed foundation and you also need to own the land. bu if you want to buy a mobile home that is already in a trailer park, you have the option of going for a personal property loan, also known as chattel loans. though, the interest rate on such a loan would be higher than that on a mobile home mortgage loan.
to duderone,
as far as im aware of, the mobile home needs to have a permanent foundation to qualify for an fha or a va loan. what fha or va offers is mobile home mortgage loans, which requires the property to be based on a permanent foundation. if the property doesnt have a permanent foundation, he can go for a personal property loan. however, it be worth his while to consult a va-approved lender regarding this.
to dogonbad,
you can get a mobile home loan as long as you have good credit score and can afford the payments. you can also refinance the loan in your name to remove your mother from the current loan. you dont need to put your land as collateral for this purpose. however, you do need to put a minimum amount of down payment to qualify for a loan. if you have 620 or more credit score, you can apply for fha title 1 loan. it requires you to put down 3.5% only.
to hugo sanchez,
is the home based on a permanent foundation? how good is your customer,s credit? how much can they put down on the loan? all these factors are taken into consideration by a lender before approving a loan. so, can you disclose some more information so that i can give a specific answer to your query and guide you in the right direction?
My credit score is under 600, due to a few old debts, I think. Currently, I own an old mobile home and the large lot that it sits on outright. Is it possible to use the land as down payment on fixed rate mortgage to purchase a newer mobile home?
I am interested in refinancing my mobile home (single wide) and adding the land note to it which is separate
want to refinance older mobile on permanent foundation, with a guest house and 1/2 acre domestic well, sewer, two sheds, appraised May 2009 at 130000 owe 28000 to private owner, wish to refianance to pay off debt and do some improvements looking for $65000.00 at a interest rate less than 7 percent. any one anywhere Thanks "steffaniesorenson@msn.com"
I have good credit 703 transunion and 690 equifax
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I have good credit 703 transunion and 690 equifax
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hi sherlock,
you will find it difficult to get a loan with a credit score of less than 600. credit requirements are stricter than before due to the market condition. anything less than 620 credit score virtually disqualifies you for a mortgage. you also need to come up with some money from your own source to make some down payment. lenders do not want to use land as down payment for a loan.
hi mj,
you can refinance your mobile home, provided it is in habitable condition and you qualify for the loan. what are your credit scores with the 3 credit bureaus? how much equity you have in your home?
hi steffanie,
your credit scores are good. you ought to be able to get low interest rates on your loan. the amount of down payment you make and upfront discount points you pay also determine the interest rate on your loan. there are lenders in this community. you can seek a no obligation free mortgage quote from them. after assessing your financial situation, credit scores and various other factors, they will offer you free mortgage quotes, provided you qualify for a loan. the quote will give you an idea about what sort of interest rates you can expect on your new loan.
thanks,
jerry
you will find it difficult to get a loan with a credit score of less than 600. credit requirements are stricter than before due to the market condition. anything less than 620 credit score virtually disqualifies you for a mortgage. you also need to come up with some money from your own source to make some down payment. lenders do not want to use land as down payment for a loan.
hi mj,
you can refinance your mobile home, provided it is in habitable condition and you qualify for the loan. what are your credit scores with the 3 credit bureaus? how much equity you have in your home?
hi steffanie,
your credit scores are good. you ought to be able to get low interest rates on your loan. the amount of down payment you make and upfront discount points you pay also determine the interest rate on your loan. there are lenders in this community. you can seek a no obligation free mortgage quote from them. after assessing your financial situation, credit scores and various other factors, they will offer you free mortgage quotes, provided you qualify for a loan. the quote will give you an idea about what sort of interest rates you can expect on your new loan.
thanks,
jerry
my husband and I have been purchasing a 1996 clayton m. home frome an individual on contract at 12% interest. Our pur. price was 19000. We have paid 5yrs. on it and owe a little over 11000. on it. It sits on rented land and the wheels and axles have been removed. We now rent it to our son, and we are really wanting to get a loan on the bal. We need a lower interest rate and the lady we are buying it from wont budge. What can we do?
how do i find out where to get a loan for a used mobile home in Portsmouth, OH?