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:
is there anyway u can help me
Hi!
Welcome to forums!
To kari,
Interest rates keep on varying on a daily basis. You can get a better interest rate if you have good credit score and a stable income. With a credit score of 620, you would be able to qualify for a FHA loan but not a conventional loan. Such loans would require a credit score of 720. You may take steps to improve your score so that you may apply for a conventional mortgage next year. Check out the given page to know some steps to improve your score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
To Geisha,
You will get a loan depending upon various factors. If you have the income proof for the last 2 years, excellent credit score, good dti ratio and will be able to afford a down payment, then it would not be difficult for you to get a loan. You can contact your local lenders or speak to the lenders of this community and seek a no obligation free mortgage quote in order to know the type of rates and terms you would receive.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To kari,
Interest rates keep on varying on a daily basis. You can get a better interest rate if you have good credit score and a stable income. With a credit score of 620, you would be able to qualify for a FHA loan but not a conventional loan. Such loans would require a credit score of 720. You may take steps to improve your score so that you may apply for a conventional mortgage next year. Check out the given page to know some steps to improve your score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
To Geisha,
You will get a loan depending upon various factors. If you have the income proof for the last 2 years, excellent credit score, good dti ratio and will be able to afford a down payment, then it would not be difficult for you to get a loan. You can contact your local lenders or speak to the lenders of this community and seek a no obligation free mortgage quote in order to know the type of rates and terms you would receive.
Feel free to ask if you've further queries.
Sussane
i need a mobile home loan a.s.a.p.!!!
to whom it may concern. my wife & myself want to refinance our triple wide mobile home(year 2000) & 10 acres of land. we have two loans now & want to combone the two togather to get a better intrest rate & do a cash out if possible. i work a part time job here in lake city & my wife has worked at dollar general for over two years & recently got a part time job also. the home was appraised at 63,000,00 & the land at 91,000,00, we have two loans & would like to combine them. can you help us with this matter.
[email address deleted as per forum rules. thanks.]
[email address deleted as per forum rules. thanks.]
Hi tim,
Depending upon the equity that you have in the property, you would be able to get a refinance and combine your land and mobile home loan. Also, the lender would check out your credit report before refinancing the loan. You can speak to your current lender in order to refinance the loan. This community also has a number of lenders. You can speak to them and seek a no obligation free mortgage consultation from them and check out the type of rates and terms you would receive.
Thanks
Depending upon the equity that you have in the property, you would be able to get a refinance and combine your land and mobile home loan. Also, the lender would check out your credit report before refinancing the loan. You can speak to your current lender in order to refinance the loan. This community also has a number of lenders. You can speak to them and seek a no obligation free mortgage consultation from them and check out the type of rates and terms you would receive.
Thanks
I need to know if my home is considered manufactured or modular. How do I find this out?
As far as I know, whether or not your property is a manufactured or modular one would be mentioned in your property deed. You should check it out in order to know the same.
20 yr fixed
Hi, I am trying to find out if what I want to do is legal/doable.
I have 10 acres in WA, there are many things that need to be done to the home site before I put a modular on it. The total cost is approximately $155,000 (for the work and the cost of the modular). Can I pay half of this amount with cash and then get an FHA mortgage for the remainder. Thank you for your time and assistance with this matter.
I have 10 acres in WA, there are many things that need to be done to the home site before I put a modular on it. The total cost is approximately $155,000 (for the work and the cost of the modular). Can I pay half of this amount with cash and then get an FHA mortgage for the remainder. Thank you for your time and assistance with this matter.
My former girlfriend owns a mobil home which I hold the mortgage for. She has a 724 credit score. The problem has been that her name is attached to a mortgage we hold together which is paid on time and current. The house is rented with the option to buy with her name on the lease to try and 0 out her debt to income ratio. We are having a hard time finding a company to re-finance the morgage so I can get the $60,000 she owes me for the private mortgage. Please help us. The mobil home was purchased new for 110,000, 2 years ago. Thank you
Hello.
My name is cecilio .0I been thinking about purchasing a mobile home, but i have bad credit and i am low income. I heard that thre is ways you can purchase a mobile home with gov help. i made 1800.00 $ last year and have a one year old son . if there is any info you can give me it'll be great.
My name is cecilio .0I been thinking about purchasing a mobile home, but i have bad credit and i am low income. I heard that thre is ways you can purchase a mobile home with gov help. i made 1800.00 $ last year and have a one year old son . if there is any info you can give me it'll be great.
can i refinance at 15yr.low fixed rate?house was built in yr.2000,with alot of overkill,bsmt.extra heavy duty custom built.Over top of bsmt.is 10"I beam frame,w/12"floor joists w/7/8"subflooring,6"external walls w/r28 inslt.roof has 8"rafters w/r44 inslt.5"/12"roof pitch,all plumbing fixtures are moen
can i refinance at 15yr.low fixed rate?house was built in yr.2000,with alot of overkill,bsmt.extra heavy duty custom built.Over top of bsmt.is 10"I beam frame,w/12"floor joists w/7/8"subflooring,6"external walls w/r28 inslt.roof has 8"rafters w/r44 inslt.5"/12"roof pitch,all plumbing fixtures are moen.My credit rating,as of 3/8/2010 is 697.
can i refinance at 15yr.low fixed rate?house was built in yr.2000,with alot of overkill,bsmt.extra heavy duty custom built.Over top of bsmt.is 10"I beam frame,w/12"floor joists w/7/8"subflooring,6"external walls w/r28 inslt.roof has 8"rafters w/r44 inslt.5"/12"roof pitch,all plumbing fixtures are moen.My credit rating,as of 3/8/2010 is 697.I am a veteran!