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 Pixis!
Welcome to forums!
Did you contact with your present lender and requested for a refinance? If not, then I would suggest you to do the same. Check out what your lender has to say in this regard. You can even speak to the lenders of this community and seek a no obligation free mortgage consultation from them. You would get to know whether or not you would get a loan.
Sussane
Welcome to forums!
Did you contact with your present lender and requested for a refinance? If not, then I would suggest you to do the same. Check out what your lender has to say in this regard. You can even speak to the lenders of this community and seek a no obligation free mortgage consultation from them. You would get to know whether or not you would get a loan.
Sussane
hi smithsussane! you encountered the same problem before? what could be the possible outcomes?
for pixis, good thing that we can consult the lenders in this community for free. let's grab the opportunity.
for pixis, good thing that we can consult the lenders in this community for free. let's grab the opportunity.
I am trying to find a lenderto refi my existing loan, to achieve lower payments. I am located in Florida. Thanx.
I am looking to buy a mobile home with my fiance. The particular home we are looking at was built in the 1960s, but completely renovated in 2002. The home is located in a park, and we would not own the land.
What type of loan, mortgage, etc, would be the best for our situation?
What type of loan, mortgage, etc, would be the best for our situation?
I WANT TO BE THE BANKER ON THE LOAN HE IS PAYING 8% NOW
i WANT TO LOWER THE RATE TO 6%
I NEED TO KNOW WHAT THE RATE WOULD BE FOR PAYMENTS
THE BALANCE IS 32498.46 NOW.THERE IS 93 PAYMENTS TO GO
I SOLD THIS ON 5/01/2007
THE BUYER IS A FRIEND I JUST WANT TO LOWER THE RATE
i WANT TO LOWER THE RATE TO 6%
I NEED TO KNOW WHAT THE RATE WOULD BE FOR PAYMENTS
THE BALANCE IS 32498.46 NOW.THERE IS 93 PAYMENTS TO GO
I SOLD THIS ON 5/01/2007
THE BUYER IS A FRIEND I JUST WANT TO LOWER THE RATE
Hi cldegrove,
Did you speak to your existing lender about the refinance? If not, then you should speak to him and check out what options he is offering you. However, it's not mandatory to refinance the loan with the same lender. You may even speak to the other lenders and get to know the rates and terms. You can also seek a no obligation free mortgage quote from the lenders of this community and check out whether or not you would receive a loan.
Hi Holley,
You need to speak to a mortgage broker regarding the mobile home loan and get pre-approved for it. Also note that, mobile homes build prior to 1976 hardly qualify for loans. In that case, you'll have to look out for personal property loans which are available with the retailers who sell mobile homes.
Hi DONALD,
You can check out the market rates and terms and accordingly lower the interest rate. To know about the present market rates, check out the given page:
http://www.mortgagefit.com/rates/
Thanks
Did you speak to your existing lender about the refinance? If not, then you should speak to him and check out what options he is offering you. However, it's not mandatory to refinance the loan with the same lender. You may even speak to the other lenders and get to know the rates and terms. You can also seek a no obligation free mortgage quote from the lenders of this community and check out whether or not you would receive a loan.
Hi Holley,
You need to speak to a mortgage broker regarding the mobile home loan and get pre-approved for it. Also note that, mobile homes build prior to 1976 hardly qualify for loans. In that case, you'll have to look out for personal property loans which are available with the retailers who sell mobile homes.
Hi DONALD,
You can check out the market rates and terms and accordingly lower the interest rate. To know about the present market rates, check out the given page:
http://www.mortgagefit.com/rates/
Thanks
I have had some deliquencies in the past year due to my husbands health issues. He lost his job and is now recieving social security after working 30 yrs. We have a 1986 single home on 2 acres with no loans on. I had it appraised at 145k last year. I tried to get a loan to pay off my mother in law, which we owe her 85k for the purchase of this property but no one wants to loan for a single wide.
Is there any lenders that loan for a single wide on 2 acres w/2 car garage.
Is there any lenders that loan for a single wide on 2 acres w/2 car garage.
Im looking for a government loan or grant that will pay for a mobile home park for HUD housing, is there anything like this?
hi terri,
you'll have to refinance the mortgage in your name. you can contact your present lender and apply for it. depending upon the equity in your property, your credit score and your income, you would be able to receive the refinance.
hi anonymous,
i don't think there is any such grant which would pay for the mobile home park for hud. you'll have to contact the lenders who would help you with a mobile home loan. you should speak to the local lenders of your area and apply for a loan.
you'll have to refinance the mortgage in your name. you can contact your present lender and apply for it. depending upon the equity in your property, your credit score and your income, you would be able to receive the refinance.
hi anonymous,
i don't think there is any such grant which would pay for the mobile home park for hud. you'll have to contact the lenders who would help you with a mobile home loan. you should speak to the local lenders of your area and apply for a loan.
I am currently paying a mortgage on a 1997 single wide mobile home, and I need to either find out if I can have it refinanced with a fair credit score, or I need to find out about a fixed land loan. At this time I rent a lot space.
Hi Frankie,
If you want to lower your mortgage payments, then you can refinance the mortgage provided if you've equity in the property. Also, while giving you a refinance, the lender will check your credit score and income. So, if you do not have a stable income or a good credit score, you won't be able to refinance it.
Feel free to ask if you've further queries.
Sussane
If you want to lower your mortgage payments, then you can refinance the mortgage provided if you've equity in the property. Also, while giving you a refinance, the lender will check your credit score and income. So, if you do not have a stable income or a good credit score, you won't be able to refinance it.
Feel free to ask if you've further queries.
Sussane
I am trying to figure out where I can get a personal property loan for a mobile home on rented lot her in winchester or stephens city,va. Have not been able to find anyone and I also have not so good credit and am a first time home buyer. Please help.
Hi ash,
What's your credit score like? If you do not have a good credit score, then you'll not be able to qualify for a loan. In order to get a conventional loan, you should have a credit score of 700. If you've the required credit score, you should contact the lenders of your area and try to get approved for a loan.
What's your credit score like? If you do not have a good credit score, then you'll not be able to qualify for a loan. In order to get a conventional loan, you should have a credit score of 700. If you've the required credit score, you should contact the lenders of your area and try to get approved for a loan.
i would like to buy a mobile home as my first big investment i dont have any credit , i would like to put it on my mother in laws property for a while while i finish school and get a career would it be very difficult to get a loan?
i would like to buy a mobile home as my first big investment i dont have any credit , i would like to put it on my mother in laws property for a while while i finish school and get a career would it be very difficult to get a loan?