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:
Hi paige,
With a credit score of 540-550, it would be quite difficult for you to qualify for a loan. Even if you want to qualify for a FHA loan, you would require a credit score of 600-620. I would suggest you to improve your credit score first and then look out for a loan.
Thanks
With a credit score of 540-550, it would be quite difficult for you to qualify for a loan. Even if you want to qualify for a FHA loan, you would require a credit score of 600-620. I would suggest you to improve your credit score first and then look out for a loan.
Thanks
i have my on land and trying to get a mobile home but my credit is not that good what cani do
i have my own land and trying to get a loan for a mobile home with not so good creit is that possible
With a bad credit, it won't be possible for you to qualify for a loan. A mobile home loan lender will require you to have a credit score of 700-720. Apart from this, your financial situation, employment details, debt to income ratio, etc. will be taken into consideration before you get a loan. If you do not meet the required criteria of the lender, you won't get approved for a mortgage.
We are looking to purchase a mobile home but have bad credit and have a mobile home to sell... What are our options?
NEED TO TALK TO SOMONE OR A PHONE NUMBER MY NUMBER IS 732-678324 THANK YOU
Hi Melissa,
In order to sell off the mobile home, you can contact a realtor or list the property in the market. This will help you in getting buyers for the property. As far as purchasing a new mobile home is concerned, you won't get a home loan with a bad credit. If you want to go for a conventional loan, you would require a score of 720. If you do not satisfy the requirements of the lender, then he would not be ready to give you a loan.
Hi George,
You need to contact the local lenders of your area in order to get a mortgage for a manufactured home. Depending upon your financial situation, your credit scores and debt to income ratio, etc. you would get a loan. You can speak to the lenders of this community to get a no obligation free mortgage consultation. This will help you in getting an idea about the prevailing rates and terms and whether or not you would get a loan.
In order to sell off the mobile home, you can contact a realtor or list the property in the market. This will help you in getting buyers for the property. As far as purchasing a new mobile home is concerned, you won't get a home loan with a bad credit. If you want to go for a conventional loan, you would require a score of 720. If you do not satisfy the requirements of the lender, then he would not be ready to give you a loan.
Hi George,
You need to contact the local lenders of your area in order to get a mortgage for a manufactured home. Depending upon your financial situation, your credit scores and debt to income ratio, etc. you would get a loan. You can speak to the lenders of this community to get a no obligation free mortgage consultation. This will help you in getting an idea about the prevailing rates and terms and whether or not you would get a loan.
we have a couple wanting to buy our manufactured home(built 2000) and on its own 12,000 sq. ft. lot in manufactured home community, mostly 55+. How can we help them buy the home? It is their first home to purchase, both work at good jobs, credit worthy. Are they able to get a HUD loan or what? What is required as down payment?
Hi!
Welcome to forums!
To hl,
The buyers will have to contact a lender and get pre-approved for a loan. Depending upon their financial situation and credit, they would be able to get a loan. If they go for a conventional loan, they will have to pay a down payment of 20% and if they go for a FHA loan, they need to give a down payment of 3.5%. They can speak to few of the local lenders and get an idea about the type of rates and terms they would qualify for.
To ann,
You can contact other lenders of your state and apply for refinance. However, in order to get a refinance, you should have some equity in your property apart from satisfying other required criteria. If you do not have equity in the property, you won't be able to qualify for a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To hl,
The buyers will have to contact a lender and get pre-approved for a loan. Depending upon their financial situation and credit, they would be able to get a loan. If they go for a conventional loan, they will have to pay a down payment of 20% and if they go for a FHA loan, they need to give a down payment of 3.5%. They can speak to few of the local lenders and get an idea about the type of rates and terms they would qualify for.
To ann,
You can contact other lenders of your state and apply for refinance. However, in order to get a refinance, you should have some equity in your property apart from satisfying other required criteria. If you do not have equity in the property, you won't be able to qualify for a loan.
Feel free to ask if you've further queries.
Sussane
I am in a Senior Park. 50 years old or better. There is about (120) Senior Mobile Homes in this Park We all pay rent ($435 a month) We do not own the land.
Hi Louis,
I guess you want to refinance the mobile home loan that you've in the property. If you're current on your mortgage payments and if you've equity in your property, then you would be able to get a refinance loan. You can speak to your current lender for a refinance. You can even speak to other local lenders offering mobile home loan for the same. If you fulfill the required criteria of the lender, you will be able to get a refinance.
Take care.
I guess you want to refinance the mobile home loan that you've in the property. If you're current on your mortgage payments and if you've equity in your property, then you would be able to get a refinance loan. You can speak to your current lender for a refinance. You can even speak to other local lenders offering mobile home loan for the same. If you fulfill the required criteria of the lender, you will be able to get a refinance.
Take care.
Is there any mobile home loan available on a 1976 doublewide on private land 2 Acres in Joshua Tree CA 92252 (not permanent Foundation) If you know any lender let us know
As the mobile home does not have a permanent foundation, it would be difficult for you to qualify for a mobile home mortgage loan. However, you will be able to qualify for a personal property loan. You can contact the retailers who sell mobile homes and apply for such a loan. However, remember that such loans are available at a higher interest rate.
I would like to buy mobile in CT need to see about pre- approval of loan