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 own my own land. I had a bankruphy 2 years ago. I am current on my new accounts. My credit score is 711. I want to get a 3 bedroom modular or double wide. Can I use my land for my down payment? I was emploted at mt job 9 years, got laid off last year and started a new job 5 months ago. Will I be eligible for a loan with the job change?
want to pawn moble home title
where can you do this
i have a poor credit rating and want to stop renting so i can save money in the long run i have found a mobile home i want to purchase but need a loan where can i get a loan in my situation i can afford 300 to 350 a month payments as i will also have a 500 mo lot rent can i get a loan with payment in this vicinity?
Is there a minimum amount to finance?. I found a really nice single wide for sale in a park for $20,000...thanks
I am interested purchasing a mobile home on a rented lot, but the mobile home was built in 1969. Are there any financial institutions or type of loans that would approve purchasing a home of that year?
Do I have to have the home appraised to obtain a chattel mortgage?
i have a mobile home and 2 other buildings on 26 acres in indiana. i am looking for someone to refinance my loan with. i have been stuck with a 7.25% 30y fixed term since buying the house and property 8 years ago. all the lenders i have spoken with thus far say they will not refinance a mobile home. are there any lenders out there who will do this at a reasonable rate? is it possible to get a va loan at this point?
wanting to refinace my manufacted home ,but the bank holding the mortage now tells me they wont loan on it ,because it is not permantly attached. need toknow what permantly attached means? and where imight try to get a loan :?:
Hi woody,
Mobile homes are said to be permanently attached if they are set on a permanent foundation and cannot be detached from the land. When a mobile home has a permanent foundation, it is treated as a real estate property and it becomes easier to get a mortgage against the home. But refinancing mobile homes with permanent foundation has also become quite tough due to the depressed economy. There are hardly any lenders who offer loans on mobile homes in this market.
Hi frustrated,
The number of lenders offering loans against mobile homes has gone down in recent times. Many have gone out of business and many have stopped originating loans for mobile homes until the market recovers. This is why you are finding it difficult to refinance your home. If you qualify for a VA loan, you can definitely look for that option. However, there are certain lenders that do offer mobile home loans. not sue if they still offer such loans. But I believe it is worth a try to seek a no-obligation free mortgage consultation with them. They will assess your financial situation, credit scores, etc. and will let you know if they can offer you a new loan against your mobile home.
Mobile homes are said to be permanently attached if they are set on a permanent foundation and cannot be detached from the land. When a mobile home has a permanent foundation, it is treated as a real estate property and it becomes easier to get a mortgage against the home. But refinancing mobile homes with permanent foundation has also become quite tough due to the depressed economy. There are hardly any lenders who offer loans on mobile homes in this market.
Hi frustrated,
The number of lenders offering loans against mobile homes has gone down in recent times. Many have gone out of business and many have stopped originating loans for mobile homes until the market recovers. This is why you are finding it difficult to refinance your home. If you qualify for a VA loan, you can definitely look for that option. However, there are certain lenders that do offer mobile home loans. not sue if they still offer such loans. But I believe it is worth a try to seek a no-obligation free mortgage consultation with them. They will assess your financial situation, credit scores, etc. and will let you know if they can offer you a new loan against your mobile home.
To stressed,
An appraisal is required to obtain a chattel loan on your mobile home. The appraisal makes sure the loan is secured by the value of the property. The lender needs an appraisal because they want to be assured that their loan amount is secured by the value of the collateral so they do not have to suffer any loss in case the borrower defaults.
An appraisal is required to obtain a chattel loan on your mobile home. The appraisal makes sure the loan is secured by the value of the property. The lender needs an appraisal because they want to be assured that their loan amount is secured by the value of the collateral so they do not have to suffer any loss in case the borrower defaults.
Hi jpadames,
Lenders will not want to finance a loan on a mobile home built prior to 1976. Mobile homes need to be in compliance with the safety and construction standards as set by the HUD. Homes built before 1976 do not comply with those standards, which is why they do not qualify for a loan.
Hi pianogram,
There is no such minimum amount limit to finance a mobile home. You can talk to a local lender regarding the loan. You should not have any problem to get a loan of $20k, if you have decent credit and income, and the property meets the HUD specified guidelines.
Thanks,
Jerry
Lenders will not want to finance a loan on a mobile home built prior to 1976. Mobile homes need to be in compliance with the safety and construction standards as set by the HUD. Homes built before 1976 do not comply with those standards, which is why they do not qualify for a loan.
Hi pianogram,
There is no such minimum amount limit to finance a mobile home. You can talk to a local lender regarding the loan. You should not have any problem to get a loan of $20k, if you have decent credit and income, and the property meets the HUD specified guidelines.
Thanks,
Jerry
i am trying to find some one who will help me finance a new mobile home that i can put on land that i am renting. i have a mobile home for trade in but its unsafe to live in.
can you have a mortgage and consolidate your bills and have one monthly payment
What can i do when i thought i was getting a mortgage for my manufacture home, but two years later i found out the loan was personal property loan, at that time i had great credit. Now am going throught some bad times. I ask the bank to modifly my loan under President Obama Program. But the bank won"t help me. So how can handle this.