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:
my wife and i are trying to buy a mobile home that is used,for $ 45000,in new jersey,can u tell me what lenders are available for these type of loans.
I have 10 acres of owned land, have a plan for a manufactured home to be built and a estimate for a local construction outfit to place the home on a foundation, septic, well, etc. The amount needed won't exceed $300,000. My wife and I have excellent credit, the land right now is worth $150,000.
I want can get a Loan n how long it take
hi george,
depending upon the equity that you have in the property, you would be able to get a refinance. if there is no equity in the property, then you won't be able to qualify for a loan. apart from this, your credit score will also play an important role in order to get a loan. if you want a fha or a va loan, then you should have a minimum credit score of 620.
hi guest,
you will have to speak to lenders who offer mobile home loans. you can first check out with your local banks or financial institutions in order to get approved for such loans. 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 what type of rates and terms you would qualify for. you may also look out for personal property loans in order to buy a mobile home. however, these loans would come at a higher interest rate.
hi william,
you will have to apply for a construction loan with your local lenders. contacting the local banks and financial institutions may also help you in getting a construction loan. if you are a member of a credit union, then they may also help you with such a loan. it is good to note that you have excellent credit. i hope you have a stable income as well. this will also matter while you apply for a loan.
hi robert,
as far as i know, it takes around 3-4 weeks in order to get approved for a loan.
take care.
depending upon the equity that you have in the property, you would be able to get a refinance. if there is no equity in the property, then you won't be able to qualify for a loan. apart from this, your credit score will also play an important role in order to get a loan. if you want a fha or a va loan, then you should have a minimum credit score of 620.
hi guest,
you will have to speak to lenders who offer mobile home loans. you can first check out with your local banks or financial institutions in order to get approved for such loans. 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 what type of rates and terms you would qualify for. you may also look out for personal property loans in order to buy a mobile home. however, these loans would come at a higher interest rate.
hi william,
you will have to apply for a construction loan with your local lenders. contacting the local banks and financial institutions may also help you in getting a construction loan. if you are a member of a credit union, then they may also help you with such a loan. it is good to note that you have excellent credit. i hope you have a stable income as well. this will also matter while you apply for a loan.
hi robert,
as far as i know, it takes around 3-4 weeks in order to get approved for a loan.
take care.
I am trying to find a lender for a mobile home that sits on ten acres of land the loan amount would be 25000 I am trying to find one that doesn't want 30% down can you help we are in the state of Michigan
need to refinance loan our is 12%. had one bite today. need more to compare. if you have any ideas ? please tell
have a fleetwood 2002 3 bed 2 bath, pay 351.26 a month.
have a fleetwood 2002 3 bed 2 bath, pay 351.26 a month.
Hi dianemeeks,
Your query has been replied to in the given page:
http://www.mortgagefit.com/michigan/mobilehomeloan-lender.html
Just have a look at it. I hope it would help you.
Hi dobb,
Do you have equity in your property? Getting a refinance would depend upon the equity that you have in the property. If there's equity in the property, then you will have to speak to the lender and get pre-approved for a loan. Also, speaking to some of the lenders will give you an idea about the rates and terms you would receive. If you feel that you can afford to pay off the loan after refinancing, then you can go for it.
Thanks
Your query has been replied to in the given page:
http://www.mortgagefit.com/michigan/mobilehomeloan-lender.html
Just have a look at it. I hope it would help you.
Hi dobb,
Do you have equity in your property? Getting a refinance would depend upon the equity that you have in the property. If there's equity in the property, then you will have to speak to the lender and get pre-approved for a loan. Also, speaking to some of the lenders will give you an idea about the rates and terms you would receive. If you feel that you can afford to pay off the loan after refinancing, then you can go for it.
Thanks
We want to get a loan for a new mobile home. We have done a credit application at one lender. We got approve but they will not go into contract until May 1st. We would like to get the tax credit. Their reason for the delay - we were late on Sallie Mae and the April payment will be 1 year since our last late payment to SM. Do we have options on ways to get the loan into contract status by April 30th? If so how?
Also why when we run a credit score through TrueCredit is shows a score of 623 Avg. But when the loan company runs the score it shows 580 as an average. Why the difference?
Thank you,
Also why when we run a credit score through TrueCredit is shows a score of 623 Avg. But when the loan company runs the score it shows 580 as an average. Why the difference?
Thank you,
hello, I'm buyin a munufacture home and the price is $65000 dollars, I'm putting $25000 dollars as a down payment.I'm looking for a loan that will cover the rest $40000 dollars. What did I need to apply for a loan that will cover the rest? and what it will be the interest rate (looking for a 30 year loan).
To Claudia,
It will be lender's discretion whether or not he would be ready to close the loan by April 30th. You can try and negotiate with your lender in order to close it by the stipulated date to get the benefit of the tax credit.
As far as the credit score is concerned, you should check out your credit report. The lender will consider your middle score in order to give you the loan.
To Juan,
You will have to contact the local lenders and apply for a loan. You can look out for conventional loans in order to buy the property. The lender will check out your credit report and your financial situation and let you know whether or not you will get pre-approved for a loan. The rates keep on changing on a day to day basis. The present rates for a 30 year mortgage is 5.02% approx.
It will be lender's discretion whether or not he would be ready to close the loan by April 30th. You can try and negotiate with your lender in order to close it by the stipulated date to get the benefit of the tax credit.
As far as the credit score is concerned, you should check out your credit report. The lender will consider your middle score in order to give you the loan.
To Juan,
You will have to contact the local lenders and apply for a loan. You can look out for conventional loans in order to buy the property. The lender will check out your credit report and your financial situation and let you know whether or not you will get pre-approved for a loan. The rates keep on changing on a day to day basis. The present rates for a 30 year mortgage is 5.02% approx.
Is there a way I can find out what my credit score is for free?
how difficult is a loan for a used manufactured with a score 525
how difficult is a loan for a used manufactured with a score 525
my credit score is 550 or 540 can i get a mobile home loan
my credit score is 550 or 540 can i get a mobile home loan