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:
get a loan on my mobile home it is clear title credit score 6.5 have guaranteed income home is 1978 in park
Hello, I'm looking advice on where to look or who to contact for a mobile home loan. The former owner passed away an the family wants to sell it quickly. Asking 22K on a rented space. I'm in the middle of a short sale and a few offers have been made so I need to move on this. Can you offer any advice? I don't know the age of the home. Thank you.
Mobile home loans which are build prior to 1976 won't qualify for loans. So, it's important for you to know when the property was build. You would be able to get a loan provided you have a good credit score and income. You will have to speak to some of the lenders to know the type of rates and terms they would be offering you. You can also seek a no obligation free mortgage quote from the lenders of this community. The quote will help you know what type of rates and terms you may receive when you apply for a loan.
If you do not get a normal loan, you may apply for personal loans from the local lenders.
If you do not get a normal loan, you may apply for personal loans from the local lenders.
The only mortgage available for Manufactured and Mobile homes on rented ground is a VA Guaranteed Home Loan, and you've got to have good credit nowadays to qualify for one. The only other option is a Chattel loan - which is a personal loan. "Bank of the West" used to offer them, but homeowners needed great credit to qualify. If it were me, I'd visit a dealership that sells Manufactured Homes, and ask them for their list of Lenders.
I need a loan for doublewide on property I own that is not a permanent foundation, with some small amount additional cash to payoff some small loans and make some small improvements to my garage.
what would be the best way to buy a piece of land with a trailor for $10,000 with a credit score of 550? What % rate will I be looking at?
Hi kj,
It will be very difficult for you qualify for a loan with a credit score of 550. The minimum credit score required to get a loan at an affordable rate and term is 620. There are still some lenders are said to offer loans to borrowers even with credit scores in the range of 580-600. But getting a loan with a score of 550 is almost impossible. You first need to repair your credit before applying for a new loan.
It will be very difficult for you qualify for a loan with a credit score of 550. The minimum credit score required to get a loan at an affordable rate and term is 620. There are still some lenders are said to offer loans to borrowers even with credit scores in the range of 580-600. But getting a loan with a score of 550 is almost impossible. You first need to repair your credit before applying for a new loan.
do you provide loans for a 2001 single wide manufactured home that is on la acre of land in michigan
I bought this double wide mobile home from this people but the land that is on of course we are not buying now she has finished paying the home but my question is she is now charging me taxes and said that I have to pay 600.00 in house taxes not property is that correct we live in fort worth zip is 76140? help this is my first time buying a home.
Hi Jessica, I`m interested in re finansing a mobil home, its worth approx 80 to 85,000 and I need approx 60,000, its permanent on a 1 acre lot has garage ,well a porch front and back .I am in Arizona,need help, thanks
Hello,
I am trying to purchase a manufactured home on 9 acres in Northern Nevada for my brother and his family to live in. I am having trouble with financing because I am not going to live in the home -- I will rent it to my brother. Any ideas? Its a double wide (1978), perm. foundation. I have really good credit and can put as much as 20% down.
I am trying to purchase a manufactured home on 9 acres in Northern Nevada for my brother and his family to live in. I am having trouble with financing because I am not going to live in the home -- I will rent it to my brother. Any ideas? Its a double wide (1978), perm. foundation. I have really good credit and can put as much as 20% down.
I have been aproved for a VA loan guranty(citf of eligibility) I wish to purchase a newer Mobile with land share I live in FL. and could not find a lender
We are a Real Estate company looking to submit loans for mobile homes, could we do business with your company?
Hi gbear,
This is a mortgage community and not an organization to give mortgage. However, there are a number of lenders participating in this community. You can speak to them and seek a no obligation free mortgage consultation. This will help you know whether or not you would get a loan.
To guest,
As the house is in your name, then you would be liable for the property taxes. I don't think she is illogical in saying so.
To Ernie,
You can contact your present lender and request for a refinance. Depending upon your credit score, income, debt to income ratio and other required criteria, the lender would let you know whether or not you would get a loan. You may even speak to the other lenders of your area in order to get a refinance.
This is a mortgage community and not an organization to give mortgage. However, there are a number of lenders participating in this community. You can speak to them and seek a no obligation free mortgage consultation. This will help you know whether or not you would get a loan.
To guest,
As the house is in your name, then you would be liable for the property taxes. I don't think she is illogical in saying so.
To Ernie,
You can contact your present lender and request for a refinance. Depending upon your credit score, income, debt to income ratio and other required criteria, the lender would let you know whether or not you would get a loan. You may even speak to the other lenders of your area in order to get a refinance.