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:
Is there equity being built up when purchasing a mobile home? The loan company I'm with has an interest rate of 13.87%, and at the time I took the loan, I had good credit. Am looking to refinance for a lower interest rate. Any ideas on where I can get decent interest?
To gtphillips,
In case you do not qualify for the Home Affordable Modification program, your lender will not be able to help you. But your mortgage company can offer you their own loan modification program. However, the lender will have their own set of qualifying criteria for such modification programs and you need to meet those criteria in order to qualify. Do you have enough income to afford the modified mortgage payments? In case your income is too little, the lender will not approve a loan modification.
To unlucky,
The interest rate on your mobile home loan depends on many things. What are your current credit scores? How much money will you pay upfront? An interest rate of 13.87% is way too high and you should look to refinance at a lower rate. You can contact a local lender or can seek a no obligation free mortgage quote from the community lenders. They will check your credit scores and other required factors and will offer you free mortgage quotes. This will give you an idea as to what kind of interest rates you can expect on your refinance loan.
In case you do not qualify for the Home Affordable Modification program, your lender will not be able to help you. But your mortgage company can offer you their own loan modification program. However, the lender will have their own set of qualifying criteria for such modification programs and you need to meet those criteria in order to qualify. Do you have enough income to afford the modified mortgage payments? In case your income is too little, the lender will not approve a loan modification.
To unlucky,
The interest rate on your mobile home loan depends on many things. What are your current credit scores? How much money will you pay upfront? An interest rate of 13.87% is way too high and you should look to refinance at a lower rate. You can contact a local lender or can seek a no obligation free mortgage quote from the community lenders. They will check your credit scores and other required factors and will offer you free mortgage quotes. This will give you an idea as to what kind of interest rates you can expect on your refinance loan.
Do mobile homes qualify for first time home buyers programs?
Hi,
Mobile homes do qualify for first time home buyer programs. FHA loans are considered good financing options for first time buyers. If you're a first time buyer with credit score of around 620 and a down payment of 3.5%, you can go for FHA Title I loan program which helps you buy both the mobile home and the lot. There are various state housing agencies that offer first time buyer loan programs to help finance purchase of manufactured homes.
Mobile homes do qualify for first time home buyer programs. FHA loans are considered good financing options for first time buyers. If you're a first time buyer with credit score of around 620 and a down payment of 3.5%, you can go for FHA Title I loan program which helps you buy both the mobile home and the lot. There are various state housing agencies that offer first time buyer loan programs to help finance purchase of manufactured homes.
Is there anyone who will give a loan for a 1979 sgl-wide improved home (metal roof etc) on a private lot (almost an acre in desired location) that will be given a permanent foundation?
What type of mortgage is available for the purchase of the Clayton I-House and what are the current rates. The land is paid for and my credit score is 890 - the total cost is around $150K
anonymous, it's fascinating that you have a credit score of 890. inasmuch as credit scoring maxes out at 850, i have to wonder how you achieved this phenomenal score.
i wish i could be of assistance with your loan request, but that's not within my purview. please let us know, though, what magic you've acquired.
i wish i could be of assistance with your loan request, but that's not within my purview. please let us know, though, what magic you've acquired.
RD Travis,
Is this mobile home that does not have a permanent foundation to be financed in a rental community or on a deeded lot?
It is very easy to do within a MH Park where you lease the lot.
Is this mobile home that does not have a permanent foundation to be financed in a rental community or on a deeded lot?
It is very easy to do within a MH Park where you lease the lot.
what if you don't have a downpayment, and have never owned a home?
I own a double wide manufactured home on 3 plus acres. (which I own). I am attempting to sell my home and need to know if the purchaser qualifies. The house has had massive improvements, but was built before 1976. Can the purchaser obtain a loan, mortgage for my home?
Thank-You
Jeff "jefmzr@copper.net"
[Email address deactivated as per forum rules]
Thank-You
Jeff "jefmzr@copper.net"
[Email address deactivated as per forum rules]
To Sarah,
If you do not have a down payment, it will be really difficult for you to qualify for a loan in this economy. Most of the lenders require you to put down some amount of money at the closing. If you have at least 3.5% down payment, you can get an FHA-insured loan. For most other types of conventional loans, you require a down payment of at least 5-10% of the purchase price.
To Jeff,
If the mobile home was built before 1976, it is going to be impossible to get a loan against it. The mobile homes need to conform to the property standards as set by HUD in the Federal National Manufactured Housing Construction and Safety Standards Act of 1974. Homes built before 1976 do not follow such standards, which is why lenders do not want to finance such old mobile homes.
If you do not have a down payment, it will be really difficult for you to qualify for a loan in this economy. Most of the lenders require you to put down some amount of money at the closing. If you have at least 3.5% down payment, you can get an FHA-insured loan. For most other types of conventional loans, you require a down payment of at least 5-10% of the purchase price.
To Jeff,
If the mobile home was built before 1976, it is going to be impossible to get a loan against it. The mobile homes need to conform to the property standards as set by HUD in the Federal National Manufactured Housing Construction and Safety Standards Act of 1974. Homes built before 1976 do not follow such standards, which is why lenders do not want to finance such old mobile homes.
I got approved for a loan in August of this year for a mobile home. I found one that fit my budget, but it wasen't what I really wanted. I found some property to put it on which was included in the loan and I am really wanting to back out of the deal, because the company I bought the mobile home from is giving me the run-around. It took forever to get the trailer built, and it took forever to finally get someone out there to work on the property, now it is taking her forever to move the trailer to the property. She promised me that we would be in our home before thanksgiving and were not. We went and looked at the built trailer on the 17th of November and she was supposed to move it that week but didn't, when the weather was beautiful, but didn't. The weather was nice for two weeks and still no trailer has been moved . This has been going on for almost five months and I am very angry about it all. I am still having to pay rent to someone else to live in their home when I should be paying it towards my own home. I have not closed on the deal yet and I would really like to cancel it all and go with someone else and get what I really want, but how do I go about doing that? Is it possible to do this? I know I would lose my earnest money but this process is taking to long because she is not doing her job, and I really feel that she dosen't care whether or when we move in the trailer or not. What would happen if I cancelled out on this deal because of this?
marcus, you ought to have a lawyer on your side to direct and counsel you in this. it's been a long haul, and you're so close that it may be painful to go on, but you may be best off to continue. beginning again is no guarantee that the next transaction will be a whole lot smoother, for one thing.
if you have legal counsel, you may be able to use persuasion to get this home done that's been delayed for so long. i agree that 5 months is outrageous, but i hope you'll consider all of the consequences before you do anything rash. your contract ought to be able to spell out any penalties you might incur, though having a lawyer would certainly help with that also.
if you have legal counsel, you may be able to use persuasion to get this home done that's been delayed for so long. i agree that 5 months is outrageous, but i hope you'll consider all of the consequences before you do anything rash. your contract ought to be able to spell out any penalties you might incur, though having a lawyer would certainly help with that also.
I HAVE A SINGWIDE HOME THAT HAS A 30YR LOAN ON IT I BOUGHT IT AT 37,000.00 IN 1999 I'VE HAD IT FOR TEN YEARS I STILL OWE 32,000.00 ON IT I TRYED TO SELL IT BUT NO LUCK I TRYED TO TRADE IT IN NO LUCK IT STILL IN GOOD SHAPE BAD PART ABOUT IT I BEEN LIVING IN A TRAILERPARK FOR THE LAST TEN YEARS I WANT MY OWE LAND OR EITHER BUY ME A HOUSE THAT WHAT I REALLY WANT MY CREDIT IS GOOD MY INCOME IS 2,000.00 MONTHLY BUT I CANT GET RID OF MY MOBLIE HOME WHAT CAN I DO PLEASE HELP THEY WANT GIVE ME A LOAN AS LONG AS I HAVE THIS LOAN PLEASE HELP.
Hi Ann,
It would have been better if you could sell the mobile home and pay off the existing mortgage on it. But since you have not been able to sell off the property, you can try and rent it, if possible. You can make the mortgage payments using the money you receive the as rent. In case you cannot find a renter and you really need to get rid of the home, you can do a deed in lieu of foreclosure. But this will affect your credit scores adversely and once you do a deed in lieu, you will have to wait for approximately 2 years or more to qualify for a new home loan.
It would have been better if you could sell the mobile home and pay off the existing mortgage on it. But since you have not been able to sell off the property, you can try and rent it, if possible. You can make the mortgage payments using the money you receive the as rent. In case you cannot find a renter and you really need to get rid of the home, you can do a deed in lieu of foreclosure. But this will affect your credit scores adversely and once you do a deed in lieu, you will have to wait for approximately 2 years or more to qualify for a new home loan.