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:
I want to refi. my mobile home to include my land financed at a local bank.
Hi anonymous buyer,
If your credit is excellent and if you are able to give a down payment of 20%, then you won't be facing any issues in getting a mortgage to buy a new property. The lender will also look into your income in order to approve you for a mortgage. If you have a stable income, lenders will be ready to give you mortgage. You can speak to the local lenders of your area in order to get pre-approved for a loan.
Hi tommygun,
You need to contact the lenders in order to get your mobile home loan refinanced. Depending upon the equity in your property, the lender will let you know whether or not your mortgage will be refinanced.
Take care.
If your credit is excellent and if you are able to give a down payment of 20%, then you won't be facing any issues in getting a mortgage to buy a new property. The lender will also look into your income in order to approve you for a mortgage. If you have a stable income, lenders will be ready to give you mortgage. You can speak to the local lenders of your area in order to get pre-approved for a loan.
Hi tommygun,
You need to contact the lenders in order to get your mobile home loan refinanced. Depending upon the equity in your property, the lender will let you know whether or not your mortgage will be refinanced.
Take care.
I undertand the mobile home I am looking at is probably about 30yrs old. It stands on its own freehold plot. My income is about 19k per year. Can I get a mortgage to purchase the mobile home and land please
I owe a 1986 14x60 schult 2 bedroom 840 sq. feet MOBILE HOME with patio w/cover 2 car parking on a family own mobile home park. It's a gated w/security quite communtiy. I've been paying on it for 18 mos. at 10% int.rate.and owe about 26,500.00. My credit is fair because I was on unemploment an notified my creditors and I'm playing catch up.I WENT BACK TO WORK NOW FOR 6MOS AND My loan is current and so is my car and credit card. I would like to refinance my loan to get a lower rate to lower my payments.Can you help me?
Your query has been replied to in the given page:
http://www.mortgagefit.com/refinance/mobilehome-low-rate.html#161669
Take a look at it. Hope it helps you.
http://www.mortgagefit.com/refinance/mobilehome-low-rate.html#161669
Take a look at it. Hope it helps you.
I would like to take a small loan on it ,but cant found the right place ? In Oregon
You will have to contact your local lender in order to get a mortgage for your manufactured property. You can even seek a no obligation free mortgage consultation from the lenders who are a part of this community. This consultation will let you know whether or not you would get a mortgage. In case, your property does not meet the requirements of the lender, then you can go for a personal property loan which is available with the retailers who sell mobile homes.
We have made an offer with Prudential Realty in Enterprise AL on a mobile home that is on a slab. There is also 8.9 acres of land. Do you do these type of real estate loans?
This is a mortgage community wherein the lenders and experts participate and help the posters with their financial queries. You should contact the local mobile home loan lenders in order to get a mortgage. They will be able to let you know whether or not you'll qualify for a loan.
can a person buy a mobile home used and put it on another lot and finance it (not FHA) as a conventional package. this includes land, home & improvements?
Terry Shepherd Dublin, Georgia Owner/ President Of Corporation
Terry Shepherd Dublin, Georgia Owner/ President Of Corporation
As far as I know, it is possible to get financing for a used mobile home which is put on another lot. However, if the land is rented, then you may have to go for a personal property loan.
I purchased a mobile home for my son 3 year ago, and he is now able to assume the existing loan. He is looking to borrow only $35,000, and the land is included, its immovable also. Estimated value $75,000. We can have the bank transfer it to him, but the interest rate is about 10%, and I'm trying to help him get a better rate. Your advise?
which banks/ (lenders) do loans for mobile home?
My wife and I have an existing mortgage on a home we bought about 4 yrs ago. It is an older home in need of serious renovations. Is there any way we could buy a double wide and have the existing loan rollover onto the price of the doublewide? Any info would help. Thank you!