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 had to filed chapter 7, is now discharged. And our house is on the auction block sept 22nd. We found a mobile home that we like that costs $17,000. Just wondering if your company looks at us for a possabilty to finance us? Rent in our area is crazy, and this way by buying this trailer we are hoping to get back on track financially.
A man who finances loans for a living told me that there is now only one loan company that covers loans for manufactured mobile homes. He said he would try to discourage me from buying a manufactured home, and that he was unable to finance a loan for a manufactured home. He also said these homes do not appreciate in value and soon there will be no loan companies that will finance manufactured home loans. Is any of this true, or is it just a rumor/lie?
Thanks,
[Email address deleted as per forum rules]
Thanks,
[Email address deleted as per forum rules]
I donot know if that is really true
how do you fo about aplying for financing on a home in a park
Hi Tracy,
To finance a mobile home in a park you need a personal property loan. Getting a mobile home mortgage loan will not be possible, if you do not own the land on which the home is sitting. Have you checked your credit scores? What are they? What kind of loan amount are you looking at?
You can check out the How Much Mortgage Can I afford calculator to find out if you can afford the amount of mortgage you are looking for. In case you can afford the mortgage and have good credit, you can go for a no-obligation free mortgage consultation with the community lenders. You will get to know if you can qualify for a loan of the required amount. The lenders would also be able to suggest you some kind of mobile home loan program that will serve your purpose.
Hi Amber,
I don't quite believe that there is only one loan company that offers loans for manufactured homes. It is true that the number of lenders offering such loans has diminished due to the sub-prime mortgage crisis. But this does not mean there are no lenders to finance mobile homes. Many people are still buying such homes. However, you may have to do a bit of extensive search for a lender, depending on which state and county the property is in.
The fact that mobile homes depreciate in value is true. But as far as I know, it is applicable only in case of a mobile home without a permanent foundation. These homes are considered to be a personal property, which is why they depreciate in value. On the other hand, mobile homes with permanent foundation are treated as real estate properties and they appreciate in value, like any other real estate property.
Thanks,
Jerry
To finance a mobile home in a park you need a personal property loan. Getting a mobile home mortgage loan will not be possible, if you do not own the land on which the home is sitting. Have you checked your credit scores? What are they? What kind of loan amount are you looking at?
You can check out the How Much Mortgage Can I afford calculator to find out if you can afford the amount of mortgage you are looking for. In case you can afford the mortgage and have good credit, you can go for a no-obligation free mortgage consultation with the community lenders. You will get to know if you can qualify for a loan of the required amount. The lenders would also be able to suggest you some kind of mobile home loan program that will serve your purpose.
Hi Amber,
I don't quite believe that there is only one loan company that offers loans for manufactured homes. It is true that the number of lenders offering such loans has diminished due to the sub-prime mortgage crisis. But this does not mean there are no lenders to finance mobile homes. Many people are still buying such homes. However, you may have to do a bit of extensive search for a lender, depending on which state and county the property is in.
The fact that mobile homes depreciate in value is true. But as far as I know, it is applicable only in case of a mobile home without a permanent foundation. These homes are considered to be a personal property, which is why they depreciate in value. On the other hand, mobile homes with permanent foundation are treated as real estate properties and they appreciate in value, like any other real estate property.
Thanks,
Jerry
does your company do personel property loans
what do u need to qualify and who do u go to for this type of loan
Hi Tracy,
As Jerry had noted above, there are a number of lenders in this community who offer all types of mortgages. Some of them do offer mobile home loans. It would be a good idea to go for no-obligation free mortgage consultation with them. If you qualify for the loan, they will get in touch with you and provide you with personalized suggestions on the type of mortgage that suits your needs. You can also contact your local lenders and check out what options they have to suggest you.
Hi mindy,
You need to have good credit score and good income to qualify for a loan, apart from satisfying other eligibility criteria. You need a minimum credit score of 620 to get a loan. Your income will also have to be sufficient to get you the loan of your desired amount. You can go for FHA Title I program which can help you buy the mobile home or the land or both of them together. You can also go for a no-obligation free mortgage consultation with the lenders in this community. They will assess your financial situation, your credit scores etc. and will let you know if you qualify for the type of loan you are looking for.
As Jerry had noted above, there are a number of lenders in this community who offer all types of mortgages. Some of them do offer mobile home loans. It would be a good idea to go for no-obligation free mortgage consultation with them. If you qualify for the loan, they will get in touch with you and provide you with personalized suggestions on the type of mortgage that suits your needs. You can also contact your local lenders and check out what options they have to suggest you.
Hi mindy,
You need to have good credit score and good income to qualify for a loan, apart from satisfying other eligibility criteria. You need a minimum credit score of 620 to get a loan. Your income will also have to be sufficient to get you the loan of your desired amount. You can go for FHA Title I program which can help you buy the mobile home or the land or both of them together. You can also go for a no-obligation free mortgage consultation with the lenders in this community. They will assess your financial situation, your credit scores etc. and will let you know if you qualify for the type of loan you are looking for.
i am trying to get a loan on a mobile home a first time buyer and have been told that it is almost impossible to get one if this is not true who should i try to help me ?
i live in texas. i have a dblwide on 1.22 acres. i want to refinance to lower my very high interest rate. my home is on the centerblocks with tiedowns. no wheels. no tongue. it is permanent and i bought it as one peice of property (land& home). who does this kind of refi.? i have looked all over, but no one wants to touch it. i always make my payments and have lived at this home for 7 years. can you direct me to a refi company that deals with this situation.
I own, out right, my mobile home. I would like to take out a loan to purchase another mobile home. I want to then sell my first mobile home, and pay off the second mobile home, without huge penalties. I don't want to finance the second mobile home over years,I want to pay it off in a few months. What kind of loan would I get?
My wife & I filed for bankruptcy in 2008 and it was discharged in 2009, will we be able to guilify for mobile home loan if we put 10 to 15% down?
can someone who has filrd for bankruptcy apply for a loan for a manufactured home?
Are Mobile homes and Manufactured homes the same when it comes to getting a loan?
i am looking for a home equity loan or any king of loan my moble home is in a park and paid in full.