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:
As you do not have any established credit and as you're unemployed, it would be quite impossible for you to get a loan. You will have to establish your credit first. You can start off with credit cards. Once you have a good credit, you can apply for loans.
im looking to buy a mobile home and my credit is poor i have been on my job for 5yrs and my income is 27,000yr could you give me the name of some lenders that might help
Hi cd,
What is your credit score like? In order to get a conventional loan, you should have a credit score of around 700-720. If you do not have so, lenders won't qualify you for a loan. If you want a FHA loan, then you should have a credit score of 620 minimum. Apart from this, you shouldn't have negative items on your credit report. If you have the minimum credit score, then you can contact the lenders and get pre-qualified for a loan. You may even 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 would qualify for a loan.
Thanks
What is your credit score like? In order to get a conventional loan, you should have a credit score of around 700-720. If you do not have so, lenders won't qualify you for a loan. If you want a FHA loan, then you should have a credit score of 620 minimum. Apart from this, you shouldn't have negative items on your credit report. If you have the minimum credit score, then you can contact the lenders and get pre-qualified for a loan. You may even 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 would qualify for a loan.
Thanks
Me and my wife dont have good credit scores 590 and 588 We were wanting to buy a mobile home, first time home buyers. We have our tax return to put down 1-%or higher on a trailer, but with our scores we didnt know if we could get a loan for one. We have made our payments to the back for another loan with our banck and have never been late or missed one payment. We didn't know if we would be better off going with a loan from our bank or with a HUD loan?
With a credit score of less than 600, it would become difficult for you to qualify for a loan. You will have to improve your credit score first and then apply for a loan. Check out some of the simple steps to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
http://www.mortgagefit.com/credit-rating/credit-repair.html
I want to purchase a $35,000. mobile home but I lost a mobile home to repossession last year. Is there a lender out there that can help?
unidentified, lenders look for a track record. your track record is abysmal. i'm sorry to tell you that your having had a repossession within the last year will disqualify you from obtaining a loan for another mobile home. further, it's going to stain your credit to the point that any other new credit is unlikely for a while.
Where do I go to find a lender for a used (1981) mobile home in NE Oklahoma?
We own 7+acre's of land we want to get a double wide mobile home for 20,000 we don't have good credit score but have collaterol can we get finananced
credit is bad but is trying to get me a mobile home
having a tough time trying to get a refinance loan with cash out to pay bills. desperate. banks reject loan when they find out home is manufactured - which i did not even know. appraisal is &158,000. owe $88,000. home is permanesnt and in good shape. why can't i get a loan?
Trying to get a mortage on the above property. it also has a very large 24x36 3 car garage as an out building.
Hi!
To fl nonnie,
You can speak to the local lenders and check out if they can lend you money to buy an used mobile home. Depending upon your credit score and income, the lender would let you know whether or not you would get a loan.
To just me and denise,
With a bad credit score, it would not be possible for you to get qualified for a mobile home loan. You will have to take steps to improve your credit score first and then look out for loans.
Hi BV/bonner jones,
Are you facing any credit issues? Lenders will not lend you money if you do not have a good credit score. What is your credit score like? In order to get a FHA loan, you should have a credit score of 620 minimum whereas for conventional loans, you should have a credit score of 700-720.
Sussane
To fl nonnie,
You can speak to the local lenders and check out if they can lend you money to buy an used mobile home. Depending upon your credit score and income, the lender would let you know whether or not you would get a loan.
To just me and denise,
With a bad credit score, it would not be possible for you to get qualified for a mobile home loan. You will have to take steps to improve your credit score first and then look out for loans.
Hi BV/bonner jones,
Are you facing any credit issues? Lenders will not lend you money if you do not have a good credit score. What is your credit score like? In order to get a FHA loan, you should have a credit score of 620 minimum whereas for conventional loans, you should have a credit score of 700-720.
Sussane
my husband and i are seniors and do not own any land. we live in a mobile home park located in southern oregon. our balance on the home is around 29,000. our payments are 335.00 a month plus a space rent of 400.00 . our income is 3,000 a month combined. we are disabled seniors. we need some things done for our home that we cannot afford to pay anyone for. we do not have good credit but most of it is from medical bills and some of the bills are quite old. we would like to know if we could get a loan on the equity we have in our home. our home is appraised around 50,000. thak you
my husband and i are seniors and do not own any land. we live in a mobile home park located in southern oregon. our balance on the home is around 29,000. our payments are 335.00 a month plus a space rent of 400.00 . our income is 3,000 a month combined. we are disabled seniors. we need some things done for our home that we cannot afford to pay anyone for. we do not have good credit but most of it is from medical bills and some of the bills are quite old. we would like to know if we could get a loan on the equity we have in our home. our home is appraised around 50,000. thak you