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 Lori!
Welcome to forums!
As far as I know the main requirement to refinance a manufactured home is that it should have a stem wall. As the property does not have a stem wall, I doubt whether or not you will be able to refinance the mortgage. However, I would suggest you to contact your present lender and check out if he can help you in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know the main requirement to refinance a manufactured home is that it should have a stem wall. As the property does not have a stem wall, I doubt whether or not you will be able to refinance the mortgage. However, I would suggest you to contact your present lender and check out if he can help you in this regard.
Feel free to ask if you've further queries.
Sussane
I recently purchased a doublewide which I moved onto 46 acres. I financed both the home and land via our local bank so that we could get into the home faster. Our local banker said that their rates were not competitive but that most customers just refinance with another lender once they get into the home. So, we did not foresee any trouble as we have good credit. However, I am having extreme difficulty finding anyone who will loan on a doublewide with the 46 acres. If I had 5 acres or less...no problem. If I had over 80 acres...no problem; just not the 46 acres. Do you know of anyone who finances both acreage and homes together? I am desperate as my current note is a variable rate loan and I really need to find a fixed rate mortgage as soon as possible...thanks
Hi thes,
Did the lenders give you any reason as to why they will not refinance the manufactured home? Is it just because of the land specifications or is there any other issue regarding the property? You may speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will help you know whether or not you will qualify for a loan.
Did the lenders give you any reason as to why they will not refinance the manufactured home? Is it just because of the land specifications or is there any other issue regarding the property? You may speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will help you know whether or not you will qualify for a loan.
We own a double wide mfg home permanently set on a full foundation on 33.19 acres with 2 additional out buildings. It is currently mortgaged at 6.55% in a 30 yr fixed loan with approximately 23 yrs left to maturity and has a 10 yr 2nd mtg at 6% with approximately 3 yrs left to maturity. 1st mtg has a balance of approx. $65,500 and 2nd mtg has a balance of approx. $13,500. Our goal is to refinance at a lower rate while rates are still down and (1) reduce the term to 15 yrs, (2) reduce the combined monthly payment, and (3) add a cash out equal to the balances of our current high interest credit accts (approximately $12,000), thereby saving many thousands in interest overall as well as hundreds in monthly pymts. Property appraised at $155,000.00 in 2003. Please contact us if you have a product available that may address these goals. Thank you.
You will have to appraise the property first and check out if you have any equity on it. Lenders will be ready to refinance the loan only if you have equity in it. Once you refinance, you will be able to combine both the loans into one and you can even lower your term of mortgage payments. You can speak to the lenders of this community and seek a no obligation free mortgage consultation from them which may help you know whether or not you will get approved for a loan.
what is considered a permanent foundation?
I am trying to rebuild my credit and my life after a divorce a few years ago.I have found a mobile home I wish to purchase,but have been unable to obtain a mortgage due slow payments in the past.I am just looking for a chance at a better life for myself and my 2 children.Is there any companies willing to take a chance?
Hi fw,
The mobile home that you're buying should be attached to the land on which it is located. This is known as permanent foundation. In order to get a mobile home loan, most lenders will want your mobile home to be permanently attached to the land.
Hi ls3medic,
As the negative items are mentioned in your credit report, it must have lowered your credit score by some points. As a result you do not have the required credit score to qualify for a loan. You'll have to pay the dues on time and improve your credit score and then apply for a loan.
The mobile home that you're buying should be attached to the land on which it is located. This is known as permanent foundation. In order to get a mobile home loan, most lenders will want your mobile home to be permanently attached to the land.
Hi ls3medic,
As the negative items are mentioned in your credit report, it must have lowered your credit score by some points. As a result you do not have the required credit score to qualify for a loan. You'll have to pay the dues on time and improve your credit score and then apply for a loan.
i have been paying 1,000.00 a month for my mobile home on rented land.my father actually owns this mobile home.i have lived here for 5 years and the loan is for 15 years.i owe 85,000,00.on the home.i would like to get my own loan with poor credit so my father can have his money.what should i do?
hi ishot!
welcome to forums!
you've mentioned that you've a poor credit. with a poor credit, it will not be possible for you to refinance the mortgage in your name. you will have to improve your credit first and then look out for a loan. check out the given page to know some simple steps to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
feel free to ask if you've further queries.
sussane
welcome to forums!
you've mentioned that you've a poor credit. with a poor credit, it will not be possible for you to refinance the mortgage in your name. you will have to improve your credit first and then look out for a loan. check out the given page to know some simple steps to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
feel free to ask if you've further queries.
sussane
I live in Michigan and I am looking to purchase a mobile home (as a 2nd home) located in a mobile home park in florida for $30,000. The home was built in '78. I have 800+ credit scores and I am wondering how much I need to expect in fees and interest rate for a 15yr term assuming that I put 20% down.
The fees will vary from lender to lender. The interest rate generally keeps on changing on a daily basis. The present interest rate for a 15 year fixed term is approximately 4.67% today. You need to speak to some of the lenders and check out the type of rates they would be giving you. You may even speak to the lenders of this community and seek a no obligation free mortgage quote from them and get to know the rates and terms you would receive.
i would like to by a home i have the land and good credit i dont have a down payment or a home picked out where do i begin
Hi bee,
You'll first have to arrange for a downpayment. If you do not have a lump sum amount as downpayment, lenders will not be ready to give you a mortgage. You can contact your friends or relatives and check out if they can help you with the downpayment. They may be ready to give you a gift. Once you have it ready, check out your credit score. With a low credit score, it would be impossible for you to get a loan. I hope you're planning to take a conventional mortgage. You would require a credit score of 700-720 in order to get a loan. Apart from this, the lender will also check your income. You'll then have to get pre-approved from a lender. Then you can contact a real estate broker and check out for properties.
Thanks
You'll first have to arrange for a downpayment. If you do not have a lump sum amount as downpayment, lenders will not be ready to give you a mortgage. You can contact your friends or relatives and check out if they can help you with the downpayment. They may be ready to give you a gift. Once you have it ready, check out your credit score. With a low credit score, it would be impossible for you to get a loan. I hope you're planning to take a conventional mortgage. You would require a credit score of 700-720 in order to get a loan. Apart from this, the lender will also check your income. You'll then have to get pre-approved from a lender. Then you can contact a real estate broker and check out for properties.
Thanks
My husband and I are wanting to refinance our mobile home, it is on a permanent foundation and we have done alot of improvements to the home inside and out. Our home has ceramic tile floors and real hardwood floors and new carpet we added and additional room on to the back of the home a covered front porch and paved driveway along with an above ground pool we did about 60,000.00 worth of improvements this year. My husband is recentaly retired and I have disability. We both filed a bankruptcy I filed a 7 and he a 13 which both have been discharged over a year. I am in the process of rebuilding our credit and we have NEVER been late on the mortgage payment. We are currently paying 12.75% interest and its killing us. We own 76,000 on our home and it has 0 equity we have been taken advantage of by several mortgage companies. Any suggestions on what to do we are paying 842.43 a month and need to refinance. Also the home was built in 1997 and is considered a hybrid home and we are on spring water. GRRR.
Sincerely
All mortgaged out... :(
Sincerely
All mortgaged out... :(