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:
Hi dr,
As far as I know, there is no eligibility requirement that states you need to own the mobile home lot in order to qualify for the 502 direct loans. You can place your mobile home on your daughter's land. But the manufactured housing must be permanently installed and it should meet the HUD Manufactured Housing Construction and Safety Standards and other required standards.
As far as I know, there is no eligibility requirement that states you need to own the mobile home lot in order to qualify for the 502 direct loans. You can place your mobile home on your daughter's land. But the manufactured housing must be permanently installed and it should meet the HUD Manufactured Housing Construction and Safety Standards and other required standards.
Hi,
Your mobile home is not too old. If it is in a good condition, you can use it as collateral and take a loan against it. There are companies that offer loans to help you consolidate your debts. You have not mentioned other factors like credit scores etc. What is your credit score? How much is your approximate income? How much of debt obligations do you currently have? What amount of loan are you looking at?
Your mobile home is not too old. If it is in a good condition, you can use it as collateral and take a loan against it. There are companies that offer loans to help you consolidate your debts. You have not mentioned other factors like credit scores etc. What is your credit score? How much is your approximate income? How much of debt obligations do you currently have? What amount of loan are you looking at?
Heard that the banks will not finance mobile home thats oler than 10 years old. Is that true? Ours is 9 years old and looking to relocate. wondering if we should try to sell soon.
I do not think thats ture
Check with some of the lenders on this forum
Check with some of the lenders on this forum
To selling,
Ive not heard of any such thing. As far as I know, if your mobile home is not older than 1976, is in good condition and complies with the HUD specified construction and safety standards, you should be able to get a loan against you home. However, if your mobile home is treated as a non-real estate property, it will depreciate in value over the time. Hence, the older it will get, the more difficult it will be to get a loan against it.
Ive not heard of any such thing. As far as I know, if your mobile home is not older than 1976, is in good condition and complies with the HUD specified construction and safety standards, you should be able to get a loan against you home. However, if your mobile home is treated as a non-real estate property, it will depreciate in value over the time. Hence, the older it will get, the more difficult it will be to get a loan against it.
Hello I would like to refinance my Manfacture Home to a lower rate, yes I do have great credit, I'm looking for a lending to refinance my loan for around $95,000.00.
What lenders are providing construction financing for a manufactured home.
Hi Darline,
If thers enough equity in the home and your credit scores are good, you can surely go for a refinance at a lower interest rate. The rates on fixed rate mortgages are quite low these days, so it will indeed be a good time to refinance. You need to check with your local lenders if they can offer you a refinance loan at a lower rate. I think it will also be a good option for you to seek no obligation free mortgage quote from the community ranked lenders. They will check your credit score, your income and other required factors. If you do qualify for the refinance, they will offer you free mortgage quotes.
Hi Rocketstock,
I think the lenders are better positioned to answer this query. You may seek a no-obligation free mortgage consultation with the community lenders regarding this. A consultation with them will be worth your while as they are the right people to guide you in situations like this. If any of the community lenders do offer construction financing, they should be able to offer help to you. They should also be able to refer you to some other lenders who do such financing, in case they themselves do not originate such loans.
Thanks,
Jerry
If thers enough equity in the home and your credit scores are good, you can surely go for a refinance at a lower interest rate. The rates on fixed rate mortgages are quite low these days, so it will indeed be a good time to refinance. You need to check with your local lenders if they can offer you a refinance loan at a lower rate. I think it will also be a good option for you to seek no obligation free mortgage quote from the community ranked lenders. They will check your credit score, your income and other required factors. If you do qualify for the refinance, they will offer you free mortgage quotes.
Hi Rocketstock,
I think the lenders are better positioned to answer this query. You may seek a no-obligation free mortgage consultation with the community lenders regarding this. A consultation with them will be worth your while as they are the right people to guide you in situations like this. If any of the community lenders do offer construction financing, they should be able to offer help to you. They should also be able to refer you to some other lenders who do such financing, in case they themselves do not originate such loans.
Thanks,
Jerry
Hello: I am a real estate broker for a resident owned community in North Port, FL searching for full and/or partial loans and/or mortgages to offer my buyers for thier purchases. Please call 941-426-0666, if you are able to offer loans and/or mortgages or can refer my buyers to a lender.
I want to purchase a mobile home in the park with or without the lot. My credit score is 633 and i have no open credit. How can i get approved for the loan?Please let me know. Thank you so much.
Sincerely Yours
Derek Wood
[Email address deleted as per forum rules]
Sincerely Yours
Derek Wood
[Email address deleted as per forum rules]
Help you need to contact yoru bank or any local agency who can ledn you the money
What credit score is required to get a loan? What would the interest rate be?
I AM TRYING TO BUY A MANUFACTURED HOME WITH LAND ON THE SAME LOAN...MY PARENTS ARE WILLING TO HELP MY HUSBAND AND I BUT WE ARE HAVING TROUBLE FINDING A LENDER THAT PROVIDE LOANS FOR MANUFACTURED HOMES....PLZ HELP.....
I am concerned about the current lender my dad has. He was financed through a company a texas and then a few months later his loan got bought out by GreenTree. I've researched the company and have seen many complaints registered against them. They have been harassing him about payments even though he's making them on time and have raised his monthly payment about $94 dollars more a month with little explanation. He feels concerned but I'm not sure his credit is good enough to refinance. What could he do?