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:
Hello,
I live in Nevada and own my own Manufactured Home on some acreage. I work for a federal agency and have a pretty decent life. My Brother and his family are a different story. I brought them down from Washington a few years ago to help them get a new start on life. They consist of my Brother, his girlfriend (wife), 6 year old daughter, 18 year old daughter with diabetes, cirosis of the liver and a host of other health issues and teen son 17 years old. They are cramped into a single wide, two bedroom trailer that they can hardly afford to heat, but it is the only place they can rent that they can afford and still live in a rural area.
I am trying to purchase an older MH on some acreage here in Nevada for my Brother and his family to live in. I am running into a brick wall with financing options because lenders wloan on a MH that wont be owner occupied despite the fact that it is on a foundation and converted to real property. This was a foreclosure and has been vacant for nearly a year. It was a Fannie Mae home, and we were pre-qualified to by it. Once we went into contract to purchase the home, FM sold it, and now we c find a lender. We were in contract to purchase the home for only $77,900. It sold three years ago for $120,000, so we are getting a good deal on the house.
Are there any resources you or your members could provide to help me? We been trying to get this home since July and my Brother and his family really need the home.
Shawna
Battle Mountain, NV 89820
[Email address deleted as per forum rules. Thanks.]
I live in Nevada and own my own Manufactured Home on some acreage. I work for a federal agency and have a pretty decent life. My Brother and his family are a different story. I brought them down from Washington a few years ago to help them get a new start on life. They consist of my Brother, his girlfriend (wife), 6 year old daughter, 18 year old daughter with diabetes, cirosis of the liver and a host of other health issues and teen son 17 years old. They are cramped into a single wide, two bedroom trailer that they can hardly afford to heat, but it is the only place they can rent that they can afford and still live in a rural area.
I am trying to purchase an older MH on some acreage here in Nevada for my Brother and his family to live in. I am running into a brick wall with financing options because lenders wloan on a MH that wont be owner occupied despite the fact that it is on a foundation and converted to real property. This was a foreclosure and has been vacant for nearly a year. It was a Fannie Mae home, and we were pre-qualified to by it. Once we went into contract to purchase the home, FM sold it, and now we c find a lender. We were in contract to purchase the home for only $77,900. It sold three years ago for $120,000, so we are getting a good deal on the house.
Are there any resources you or your members could provide to help me? We been trying to get this home since July and my Brother and his family really need the home.
Shawna
Battle Mountain, NV 89820
[Email address deleted as per forum rules. Thanks.]
Hi Shawna,
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about34279.html#148347
Take a look at it. I hope it will help you.
Thanks
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about34279.html#148347
Take a look at it. I hope it will help you.
Thanks
Hi ,
Im trying to Purchase a Mobile Home on a Rented lot. Problem seems that the Year of the home is preventing a Loan from any bank around. The home is Fairly cheap and in good condition .. I dont know what way to go with this , Is there any banks that do Loans for a Mobile Home from 1964 for $12,600.00
Im trying to Purchase a Mobile Home on a Rented lot. Problem seems that the Year of the home is preventing a Loan from any bank around. The home is Fairly cheap and in good condition .. I dont know what way to go with this , Is there any banks that do Loans for a Mobile Home from 1964 for $12,600.00
Hi Chris!
Welcome to forums!
Mobiles homes which were built before 1976 do not qualify for mortgage. Most lenders will not finance such properties. You can contact lenders who offer personal property loans and check out if they can help you in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Mobiles homes which were built before 1976 do not qualify for mortgage. Most lenders will not finance such properties. You can contact lenders who offer personal property loans and check out if they can help you in this regard.
Feel free to ask if you've further queries.
Sussane
I need to find financing for a 1978 single wide mobile home that is on its own land. I have been renting it for 8 yrs. now and my landlord wants to sell it to me. Can you guide me in the right direction to get this going?
I need approximately an50% pre approved mortgage or loan to buy a mobile home in a "Manufactured Home Park" in New Jersey ( Mantua). Both my credit score & my husbands is above 650 . Where can I get such an item. Banks do not seem to want to help us.
The home is manufactured in 1986 and is 14 feet wide. Thank you in advance for any help you can give me.
The home is manufactured in 1986 and is 14 feet wide. Thank you in advance for any help you can give me.
Hello,
can you recommend any banks for example that are making loans manufactured loans
can you recommend any banks for example that are making loans manufactured loans
i need a loan company to finance the home and 15 acres and cash out to pay off ex husband or i will have to sell it and move my children please help :cry:
Hi kimmysmile,
You can contact lenders to check out if they can help you in getting a mobile home loan. Depending upon your credit score, income, etc you would get the loan. In case, you are unable to get a conventional mobile home loan, you may look out for personal property loans.
Hi LW,
Did the lenders give you any reason as to why they aren't giving you a loan? You can speak to them and check out the reasons for not getting the loan. You can speak to the lenders of this community and get a no obligation free mortgage consultation from them. This will let you know whether or not you would get a loan.
Hi calbu,
Your local lenders can help you with manufactured home loans. You may also check out with the retailers who sell mobile homes in order to get personal property loans.
Hi lisa,
Do you have equity in the property? You'll be able to get cash out refinance if you have equity in your property. If there's equity, then you can contact your present lender and try to get a refinance.
Thanks
You can contact lenders to check out if they can help you in getting a mobile home loan. Depending upon your credit score, income, etc you would get the loan. In case, you are unable to get a conventional mobile home loan, you may look out for personal property loans.
Hi LW,
Did the lenders give you any reason as to why they aren't giving you a loan? You can speak to them and check out the reasons for not getting the loan. You can speak to the lenders of this community and get a no obligation free mortgage consultation from them. This will let you know whether or not you would get a loan.
Hi calbu,
Your local lenders can help you with manufactured home loans. You may also check out with the retailers who sell mobile homes in order to get personal property loans.
Hi lisa,
Do you have equity in the property? You'll be able to get cash out refinance if you have equity in your property. If there's equity, then you can contact your present lender and try to get a refinance.
Thanks
I am in a house that I cannot afford because Iam on disability. I am only 42 and a MD messed up a knee replacement. How can I apply for help in buying some land and a mobile home. My lender is now hsbc, and they refuse to work with the government in lowering my mortgage. Do you know of any way I could get help?
I live in a trailer with my boyfriend and our daughter and his father. The loan is through the mobile home park. We still owe on the trailer but are in extreme need of more space and need to move. The park is supposed to sell the trailer for us. But on there own time. Our rent keeps going up and we just want to move on. How do we go about getting out of the loan? Or getting out of the trailer? Please help.
I'm looking at a 1972 2br/1b 12X60 (relatively small) This is in a mobile home park. I can put 60% of the purchase price down but need about $7000 in a loan. I don't want to extend that to 10 years. are there any loans available for #1. that small amount, #2 that old a trailer or #3 that small of square footage?
Hi Marcelle,
You are in a difficult situation and it would be tough for you to get a mortgage for buying land and a mobile home. However, you should definitely speak to some of the local lenders of your area and check out if they can help you depending upon your financial situation. As far as your present lender is concerned, you should try and modify your loan with him so that you are able to save the property. If you're able to do that, you don't have to go for another mortgage.
Hi danielleh,
You can ask your lender to speed up the process in order to sell off the property. This is the only way in which you would be able to remove your name from the mortgage. Unless the property is sold off, you won't be able to pay off the loan.
Hi kf,
Generally loans are not available for such a small amount and mobile homes build prior to 1976 do not qualify for loans. The lenders are concerned about the life of the property and do not agree to lend on such old properties.
Take care.
You are in a difficult situation and it would be tough for you to get a mortgage for buying land and a mobile home. However, you should definitely speak to some of the local lenders of your area and check out if they can help you depending upon your financial situation. As far as your present lender is concerned, you should try and modify your loan with him so that you are able to save the property. If you're able to do that, you don't have to go for another mortgage.
Hi danielleh,
You can ask your lender to speed up the process in order to sell off the property. This is the only way in which you would be able to remove your name from the mortgage. Unless the property is sold off, you won't be able to pay off the loan.
Hi kf,
Generally loans are not available for such a small amount and mobile homes build prior to 1976 do not qualify for loans. The lenders are concerned about the life of the property and do not agree to lend on such old properties.
Take care.
Iwould like to purchse a used moble home, no more tha $8,000.00. My credit score is 611. Is it possible an who should I contact for loan.
With the credit score that you've mentioned, you will be able to qualify for a FHA loan for the mobile home. You should contact your local FHA lender and apply for loans. They will let you know what type of rates and terms you would receive depending upon your income and credit score.