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:
I would like to purchase a mobile home with land, and have located one that I am very interested in, would like someone to contact me at my email address listed above. Thank you. Sharon
To Sharon,
You haven't mentioned what amount of loan you're looking at? What is your credit score? Do you want an FHA loan or a conventional loan?
You can seek a no-obligation free mortgage consultation with the lenders in this community. If you have good credit and sufficient income to qualify for the loan, the lenders will get in touch with you for a personalized consultation. They will then be able to offer you suggestions on the kind of loan that will suit your requirements.
To soltx,
It's strange that the mortgage company is harassing your dad even though he's been making the payments on time. As far as the increase in the mortgage payment is concerned, he must ask for an explanation from the lender. As a borrower, he definitely has the right to seek explanation from the lender as to why they've increased the payments. It is possible that the property taxes has gone up, which has increased the mortgage payments. But still, he ought to know the reason for this sudden increase in the payments. As far as getting rid of this lender is concerned, he'll have to refinance the loan.
You haven't mentioned what amount of loan you're looking at? What is your credit score? Do you want an FHA loan or a conventional loan?
You can seek a no-obligation free mortgage consultation with the lenders in this community. If you have good credit and sufficient income to qualify for the loan, the lenders will get in touch with you for a personalized consultation. They will then be able to offer you suggestions on the kind of loan that will suit your requirements.
To soltx,
It's strange that the mortgage company is harassing your dad even though he's been making the payments on time. As far as the increase in the mortgage payment is concerned, he must ask for an explanation from the lender. As a borrower, he definitely has the right to seek explanation from the lender as to why they've increased the payments. It is possible that the property taxes has gone up, which has increased the mortgage payments. But still, he ought to know the reason for this sudden increase in the payments. As far as getting rid of this lender is concerned, he'll have to refinance the loan.
Do you have any homes for sale in georgia that have been repoed
Hi Dan,
If you have been trying to purchase a repossessed home in Georgia, you can check out websites that give you free access to the list of such homes in a particular area. Such sites give you full details of the listed repossessed properties which will help you know how you can go about purchasing the property.
If you have been trying to purchase a repossessed home in Georgia, you can check out websites that give you free access to the list of such homes in a particular area. Such sites give you full details of the listed repossessed properties which will help you know how you can go about purchasing the property.
I need one for 20,000 ,want to pay off existing loan for 8,ooo which will free up 8,000 of my money on a secured loan ,Who can help me with this
hi,
you can surely get a mobile home equity loan if there's enough equity in the property and the home is in good condition. you also need to have decent credit scores and income to qualify for the loan. you may seek a no obligation free mortgage quote from the community lenders. if you qualify for the equity loan and your property meets the eligibility requirements, they will get in touch with you and offer you free mortgage quotes.
you can surely get a mobile home equity loan if there's enough equity in the property and the home is in good condition. you also need to have decent credit scores and income to qualify for the loan. you may seek a no obligation free mortgage quote from the community lenders. if you qualify for the equity loan and your property meets the eligibility requirements, they will get in touch with you and offer you free mortgage quotes.
Hi I have a 1975 moile home double wide in excellant condition i have a chance to buy under apraised value and i have 20% down is there finacing for me? anywhere help
where can I get one?
Hello. I am trying to buy this manufactured home on 2 acres of property. My credit score is fair at 635 but I have no credit cards just 1 target card. I am finding it difficult to get a loan for a manufactured home. The home was built in 1996 and has a permanent foundation. Is it possible to find a lender who will give me a loan with only 3-5% down payment? The cost of the home and property its on is $75,000. If I can't get a loan for the manufactured home, would it be possible to just get a loan for the land it sits on instead? I need some advice! Thanks!
I feel like Iam backing up . Ihave been paying for 16 years and still owe 25,000 on an original 26,000 loan PLEASE HELP !!!!!!!!!!!!
Hi Mark,
It seems the mortgage is an interest only loan. You had so far been paying only the interest. Your payments were not applied to the principal balance of the loan. During the interest only period, the original loan balance remains unchanged. At the end of the interest only period, the loan is amortized and the payments you make are applied towards both the principal and interest. Check your mortgage documents and find out the interest only term on your loan. This will give you an idea about how long you have paid only interest and since when you have actually started making payments towards the principal.
Hi kiwi,
Your credit score is ok. But if you wish to put down 3-5%, I believe an FHA loan would be a good option for you. FHA offers Title I loan programs for purchase of both mobile homes and lands. The home has a permanent foundation, which is good. Now if it meets HUD specified property requirements, it will qualify for the FHA loan. You can contact any FHA approved local lender or you can go for a no-obligation free mortgage consultation with the lenders in this community. They will check your financial situation, your credit etc. and will let you know if you qualify for a mobile home loan to make the purchase.
It seems the mortgage is an interest only loan. You had so far been paying only the interest. Your payments were not applied to the principal balance of the loan. During the interest only period, the original loan balance remains unchanged. At the end of the interest only period, the loan is amortized and the payments you make are applied towards both the principal and interest. Check your mortgage documents and find out the interest only term on your loan. This will give you an idea about how long you have paid only interest and since when you have actually started making payments towards the principal.
Hi kiwi,
Your credit score is ok. But if you wish to put down 3-5%, I believe an FHA loan would be a good option for you. FHA offers Title I loan programs for purchase of both mobile homes and lands. The home has a permanent foundation, which is good. Now if it meets HUD specified property requirements, it will qualify for the FHA loan. You can contact any FHA approved local lender or you can go for a no-obligation free mortgage consultation with the lenders in this community. They will check your financial situation, your credit etc. and will let you know if you qualify for a mobile home loan to make the purchase.
To Kris,
You will not be able to get financing for a mobile home built prior to 1976. These homes do not comply with HUD specified property standards and depreciate fast. This is why no lender would want to finance such old mobile homes.
To ed,
It is easier to find financing for mobile homes if you do not occupy the property as primary residence. But given your credit scores and income are good, there are lenders who can offer you mobile home loans. How good is your credit? How much do you want to borrow? What approximately is your income?
You will not be able to get financing for a mobile home built prior to 1976. These homes do not comply with HUD specified property standards and depreciate fast. This is why no lender would want to finance such old mobile homes.
To ed,
It is easier to find financing for mobile homes if you do not occupy the property as primary residence. But given your credit scores and income are good, there are lenders who can offer you mobile home loans. How good is your credit? How much do you want to borrow? What approximately is your income?
What qualifies as a permanent foundation.
Hi,
If the axles are removed and the home is fixed on the site it is said to be sitting on a permanent foundation. However there are other criteria which need to be fulfilled for the foundation to be considered permanent. You can check the page below to know more on permanent foundation:
"http://www.hud.gov/offices/adm/hudclips/guidebooks/4930.3G/index.cfm"
If the axles are removed and the home is fixed on the site it is said to be sitting on a permanent foundation. However there are other criteria which need to be fulfilled for the foundation to be considered permanent. You can check the page below to know more on permanent foundation:
"http://www.hud.gov/offices/adm/hudclips/guidebooks/4930.3G/index.cfm"
Just what banks still give manufactured home loans? I cannot find one single one in the entire state of Wisconsin that will give a manufactured home loan, except for one that wants 25% down and it is a 3/1 ARM. None of the banks will give them despite the fact that FHA will insure the loans.