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:
Welcome lameka,
You won't be able to qualify for a manufactured home loan immediately after filing bankruptcy. You will have to wait for 2 years after your bankruptcy discharge to get a FHA loan. For a conventional loan, you would get have to wait for 4 years.
You won't be able to qualify for a manufactured home loan immediately after filing bankruptcy. You will have to wait for 2 years after your bankruptcy discharge to get a FHA loan. For a conventional loan, you would get have to wait for 4 years.
Could you link to an example of an application, in printable form, for a loan for a used mobile home for a promissory note to be held by the seller?
I don't know what questions will be asked or required, and I would like to know in advance. I have been unable to find an example anywhere.
I don't know what questions will be asked or required, and I would like to know in advance. I have been unable to find an example anywhere.
I am looking to see if I can refinance my 2007 MH with and approximate amount due of $55,000.00. I own the land (3.75 acres). I'd like to know if I can refinance both together (home and land).
Hi jasneskis,
You should contact an attorney who will help you in drafting the promissory note and other applications. He will be the best to help you in this regard.
Hi A Hicks,
You should own your property for at least 8-10 months prior to refinancing the home loan.
Hi R.Pilot,
You will have to speak to your current lender regarding refinancing both the land and the property together. You should have equity in your property if you want to refinance the loan. If there is no equity in the property, then you won't qualify for a refinance.
Thanks
You should contact an attorney who will help you in drafting the promissory note and other applications. He will be the best to help you in this regard.
Hi A Hicks,
You should own your property for at least 8-10 months prior to refinancing the home loan.
Hi R.Pilot,
You will have to speak to your current lender regarding refinancing both the land and the property together. You should have equity in your property if you want to refinance the loan. If there is no equity in the property, then you won't qualify for a refinance.
Thanks
Hi Jessica I have a lady who wants to purchase a mobile home that is 38 years old and they are looking for a financing company. they have 4000 for down payment can they qualify?
thank you,
Jacqueline
thank you,
Jacqueline
we own a mobile home, which is set up on a concrete pad, has a breezeway & 2 car garage attached. We are set up on 5 acres of land w/a 30x40 pole shed on it, we would like to add on...where to go?
Hi Jacqueline,
Mobile homes build prior to 1976 do not qualify for loans. I guess the mobile home that this lady wants to purchase is build prior to 1976. Thus, there are hardly any chances to get a mobile home loan. However, she may contact the retailers and check out if she can qualify for a personal property loan.
Hi Guest,
You can refinance your present loan and use the cash out money to improve your homes. However, you should have equity in your property in order to refinance the loan. You may even speak to your lender and check out if he can offer you any kind of home improvement loan for your mobile home.
Thanks
Mobile homes build prior to 1976 do not qualify for loans. I guess the mobile home that this lady wants to purchase is build prior to 1976. Thus, there are hardly any chances to get a mobile home loan. However, she may contact the retailers and check out if she can qualify for a personal property loan.
Hi Guest,
You can refinance your present loan and use the cash out money to improve your homes. However, you should have equity in your property in order to refinance the loan. You may even speak to your lender and check out if he can offer you any kind of home improvement loan for your mobile home.
Thanks
H, we own our mobile home and our land. We found a 2000 year old dble. wide mobile home very good sharp for $39,000. we are moving our old one out and putting the newer on in.
Can you help us? or you know how can.
Thanks janet :roll:
Can you help us? or you know how can.
Thanks janet :roll:
We have an older mobile home that is paid for in a mobile home park, which we want to sell on our own. We're interested in purchasing a double wide in another park with 20% down, leaving a loan amount of apx. 70,000 - our credit score is 800 - possibly what would be our interest rate on a personal loan?
Hi Janet,
You'll have to contact lenders who offer mobile home loans. Depending upon your financial situation, your credit score, etc. you may or may not qualify for loans. You will find a number of lenders participating in this community. You can seek a no obligation free mortgage consultation from them and get to know what terms and conditions you would receive.
Hi lv,
The interest rates on personal loans are quite higher compared to a normal mobile home loan. You'll have to speak to the personal property loan providers in order to know the rates and terms of the loan.
You'll have to contact lenders who offer mobile home loans. Depending upon your financial situation, your credit score, etc. you may or may not qualify for loans. You will find a number of lenders participating in this community. You can seek a no obligation free mortgage consultation from them and get to know what terms and conditions you would receive.
Hi lv,
The interest rates on personal loans are quite higher compared to a normal mobile home loan. You'll have to speak to the personal property loan providers in order to know the rates and terms of the loan.
looking for a mortgage for buyers on a mobile home please adv
Hi Joe,
Your buyers will have to contact a mobile home loan lender in order to get a mortgage. Depending upon their financial situation and credit score, they would get approved for a loan from the lender.
Thanks
Your buyers will have to contact a mobile home loan lender in order to get a mortgage. Depending upon their financial situation and credit score, they would get approved for a loan from the lender.
Thanks
I want to purchase a double wide but have no credit history but I am looking to start and I was wondering if you do loans for people with no credit history
Hi, my husband and I have never owned a home before. We are currently renting a really nice 3 bedroom mobile home in a nice park in southern california with our 2 children. My husband has limited credit since he just got his first car loan in 2008. And I filed for bankruptcy before he and I met. Which was discharged in 2006. But we both have scores of around 620 each. Our landlord wants to sell the mobile home we are living in within the next year. So we are looking into options to buy it. Do you know what kind of interest rates we would be looking at? The selling price right now for this mobile home is 47,000. We just are not sure we qualify. We both have jobs in the medical field. Our combined income is 50,000 a year conservatively. Thanks for your help!