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 am looking for a mobilehome with land loan - I do not have a mortgage on my property now, You can contact me by email at: bugyou2@gmail or by phone at : 904-683-4748
i would like to purchase a home to go on the land that i have bought my credit score is from 570 to 620
405-6124366
405-6124366
To Bill,
What is your middle score? If it is less than 620, you will have difficulty in getting a mobile home loan. You can contact any local lender to find out if you qualify for a loan. You can go for FHA-insured Title I loan to purchase the mobile home.
To Jackie and Cheryl,
It is true that most of the lender have now stopped offering loans on existing mobile homes. Only a few of them still offer such loans. But they charge high rate of interest and require you to pay at least 20% down payment. In case you have good credit score and income, you may still qualify for a loan at an affordable rate. There are lenders in this community. You may seek a no-obligation free mortgage consultation with them. If any of them offer such loans and you qualify for it, they will help with the loan.
What is your middle score? If it is less than 620, you will have difficulty in getting a mobile home loan. You can contact any local lender to find out if you qualify for a loan. You can go for FHA-insured Title I loan to purchase the mobile home.
To Jackie and Cheryl,
It is true that most of the lender have now stopped offering loans on existing mobile homes. Only a few of them still offer such loans. But they charge high rate of interest and require you to pay at least 20% down payment. In case you have good credit score and income, you may still qualify for a loan at an affordable rate. There are lenders in this community. You may seek a no-obligation free mortgage consultation with them. If any of them offer such loans and you qualify for it, they will help with the loan.
I need a loan to purchase this mobile home. I am living in the mobile home. I have been paying the lady for the house. I need the home in my name. I own less than 10,000 for land too. Please help me.
Is it better to go with a local lending company, or a company that provides loans across the nation? I received a mailer from FSU Mobile Home Loans out of Oregon, though I am in Florida. They seem to have a great background with many satisfied customer testimonials, bbb, etc. though not sure if they can offer the same rates/programs as other local outfits.
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[External link deleted as per forum rules]
I own my own land and would like to purchase a mobile home (new or used). Can I get a home even if my credit score isn't very high by using my land as collatoral?
To Jerri,
"Can I get a home even if my credit score isn't very high by using my land as collatoral?"
There is no substitute for a good credit score. You can use your land as your collateral. But you also need to have good credit to qualify for the loan. You need a score of around 620 to get a loan at good rate and terms. If your credit is less than that, you will find it difficult to qualify for any loan.
To Tony,
It does not matter whether the lending company operates locally or across the nation. What is important is whether the company is trustworthy and whether they can offer loans at good rates and terms. Hence, it is important to shop for a mortgage and get quotes from a number of lenders. It can help you choose the right loan option.
"Can I get a home even if my credit score isn't very high by using my land as collatoral?"
There is no substitute for a good credit score. You can use your land as your collateral. But you also need to have good credit to qualify for the loan. You need a score of around 620 to get a loan at good rate and terms. If your credit is less than that, you will find it difficult to qualify for any loan.
To Tony,
It does not matter whether the lending company operates locally or across the nation. What is important is whether the company is trustworthy and whether they can offer loans at good rates and terms. Hence, it is important to shop for a mortgage and get quotes from a number of lenders. It can help you choose the right loan option.
I have a mobile home I am selling on its own land , Do you know of any lenders that will do a morgage without putting 20% down? I am in ma.
I am needing a loan for a mobile home that is not on a foundation but however it sits on 4 acres with a huge garage on concrete with electric. Where would be my best chance of getting a loan if the mobile home is not worth as much as the property?
I am looking for a list of lenders that will finance buyers with bad credit. I am selling my mobile home and want to help people by listing lendors for them. This is what the gentleman did for me when I purchased my home. My home is in Michigan in a park.
Are You In any Need of financial help? Such as loan, kindly fill the application form below and send it to us via Email:white.loanfunds81@gmail.com
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I have been in a rent to own agreement for three years have receipts that i have never paid a late payment to the owner Have been working at same place for 3.5 years after my previous job of 6 years was closed. i have tried to raise my credit score and repair any problems but score is only 617 now.. Waht is my best move now?
I was told that there are banks that WILL permit a reverse lmortage for a manufactured home built before 1976. Is this true.? If not is there any way to obtain a reverse mortage for my pre-1976 home? AND if not, is there any such similiar assistance for people who have pre-1976 manufactured homes? Thanks jeff jefmzr@copper.net