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:
liam, you'll have difficulty in locating such a loan. at this time, i think your best bet is to search in your local area for a lender who might consider a personal loan, holding title as collateral. alternatively, there are, i believe, numerous lenders who advertise online and can be found doing an internet search. i cannot vouch for any, but i'm quite sure they exist.
I have a 2001 Dutch Mobile home that is paid for....I need to consolidate debt before I get evicted from the park I live in with my two young daughters. I pay lot rent and would be willing to pay a monthly payment of 500 to 700 a month to get the debt paid off and be able to have a savings again. Due to credit cards and personal loans along with student loans I have found myself falling farther and farther behind. Had a bankruptcy in 07 or 08 chapter 7. I am about to get my power shut off due to having to pay on other loans. Can someone please help me I am desparate!!!!!
Hi~ I'm looking to purchase my fathers mobile home from him directly that already is located in a community (lot rent separate). The cost is only going to be 13K. Would this still be considered a 'mortgage' type loan or would I go for a collateral personal loan? I have never bought a home but I don't want to waste any opportunity I may have in the future to buy a more expensive home as a first time home buyer.
Thank you for your time
Thank you for your time
We are trying to buy a 1975 doublewide sitting on foundation with a 3 stall garage - We are pre-approved for $95.000 for a "house" but not this trailer.......how do we get financing?? It sits on a large lot, deck, patio, landscaped and remodeled inside with a large 3 stall tandem garage, its perfect for us!!
Hi Debbi,
It is going to be very difficult for you to get financing for a 1975 mobile home. No lender would want to offer loan against such an old home. Mobile homes built prior to 1976 do not conform to the standards specified in the Federal National Manufactured Housing Construction and Safety Standards Act, which came into effect from 1976. These homes depreciate fast and have low life expectancy. I think it will be easier for you to get a loan, if you opt to purchase a relatively new mobile home.
Hi Tris,
Since the mobile home you want to purchase in located in a community lot and you do not own the land on which the home sits, you are likely to get a personal property loan. In order to qualify for a mobile home mortgage loan, you need to have both the home and the land in your name. Given the amount of the loan you are looking for, it should not be difficult for you to get a personal property loan if you have a decent credit and income.
It is going to be very difficult for you to get financing for a 1975 mobile home. No lender would want to offer loan against such an old home. Mobile homes built prior to 1976 do not conform to the standards specified in the Federal National Manufactured Housing Construction and Safety Standards Act, which came into effect from 1976. These homes depreciate fast and have low life expectancy. I think it will be easier for you to get a loan, if you opt to purchase a relatively new mobile home.
Hi Tris,
Since the mobile home you want to purchase in located in a community lot and you do not own the land on which the home sits, you are likely to get a personal property loan. In order to qualify for a mobile home mortgage loan, you need to have both the home and the land in your name. Given the amount of the loan you are looking for, it should not be difficult for you to get a personal property loan if you have a decent credit and income.
To Lynn,
A debt consolidation loan can help you manage your debts in a better way. You can pay off your credit card and other debts and get current on your loans using the new loan. But the problem is, you have a bankruptcy in your credit. You will have to wait for at least 2 years after the bankruptcy discharge to get a loan. You must also have improved your credit since the bankruptcy discharge. What are your current credit scores? When exactly were you discharged from the bankruptcy?
A debt consolidation loan can help you manage your debts in a better way. You can pay off your credit card and other debts and get current on your loans using the new loan. But the problem is, you have a bankruptcy in your credit. You will have to wait for at least 2 years after the bankruptcy discharge to get a loan. You must also have improved your credit since the bankruptcy discharge. What are your current credit scores? When exactly were you discharged from the bankruptcy?
How do i go about getting approved for a loan and how much
You will need to contact a lender and provide yoru financial details
Hi redneck,
You have not provided any information, based on which I can give you some suggestions. Having a good credit and income is essential these days to qualify for a loan. What are your credit scores? What is your approximate annual income? How much of a mortgage are you looking for? Do you own the land on which you would put the mobile home?
You have not provided any information, based on which I can give you some suggestions. Having a good credit and income is essential these days to qualify for a loan. What are your credit scores? What is your approximate annual income? How much of a mortgage are you looking for? Do you own the land on which you would put the mobile home?
my mom is 76 only income ss and a small retirement. Home she lives in is very old and beond repair. I am trying to co sign to get her into a new home already set up in same park. with moms income my sisters income who lives with her and my self on as co signer together our dept to income falls short by 200.00 what can I do who can I get some help from
and for that $200 you can't get the loan company to stretch a little bit? that's a sad commentary on life in these days. can you beg, borrow or scrounge up enough money to be able to reduce the loan amount needed so that payments come down enough?
Home price 35,000 mom 16.764.00100 sis around 11,000 mine 19,000my credit score 745 sis 620 mom is 600
what are the requirements to be a mobile home park and qualify for FHA?
To judy,
"….mom 16.764.00100 sis around 11,000 mine 19,000…. "
You mean these are the incomes that were taken into consideration while determining the DTI ratio? What are the debt obligations that you have? You and your sister have the credit to qualify for an FHA loan. However, your mother's credit is a bit low and she could have some problem while qualifying for the loan. As far as the DTI ratio is concerned, you can look for some other lenders and see whether they are ready to stretch that little bit.
To NANCY,
The FHA does allow you to purchase a home and place it on a mobile park. It is not necessary for you to own the site where you want to place the mobile home. Both the site and the home need to meet the required eligibility criteria to qualify for the FHA loan. As far as the site is concerned, it should have proper water supply, sewage system etc. The mobile home should also have not been shifted from a different location to the new site. As per the FHA requirements, the mobile home can only be moved from the manufacturer's or dealer's lot to the site where the home would be permanently placed.
"….mom 16.764.00100 sis around 11,000 mine 19,000…. "
You mean these are the incomes that were taken into consideration while determining the DTI ratio? What are the debt obligations that you have? You and your sister have the credit to qualify for an FHA loan. However, your mother's credit is a bit low and she could have some problem while qualifying for the loan. As far as the DTI ratio is concerned, you can look for some other lenders and see whether they are ready to stretch that little bit.
To NANCY,
The FHA does allow you to purchase a home and place it on a mobile park. It is not necessary for you to own the site where you want to place the mobile home. Both the site and the home need to meet the required eligibility criteria to qualify for the FHA loan. As far as the site is concerned, it should have proper water supply, sewage system etc. The mobile home should also have not been shifted from a different location to the new site. As per the FHA requirements, the mobile home can only be moved from the manufacturer's or dealer's lot to the site where the home would be permanently placed.
I am wanting to buy a double wide and put it on my daughters land. Can i get a 502 rual development loan if I lease a spot?