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 do not think you would be able to rollover the existing mortgage onto the price of the double wide. If you want to renovate your property, then you can apply for a home improvement loan.
We have a manufactured home, it is real property, has all structural modifications except brick skirting. Value is around $145.000 We owe $130.000 mortgage. Can we get a loan modification to reduce our payments of $1100.00 a month.? We are not in arrears but the payment is too high.
My fiancé and I were looking to purchase a mobile home .she has land and owes money for a previous trailer that's is uninhabitable . A mobile home company approved us on my credit score of 650 and hers of 550 .the bank said it looks very good and said we qualify for 110,000.. So we turned in notice on our rental ordered new washer and dryer and my children waitig to move in . Now three weeks from waiting on bank to final approval a bank president returned proposal with these changes: only so much of land value and approximately 65% of trailer value got any ideas please help
Hi Barrouse,
You will have to apply for a loan modification with your lender. It will depend upon the lenders discretion whether or not your request will be accepted. As you have equity in your property, then I think it would be difficult for you to qualify for a modification.
Hi Braddeyton,
You can speak to the lender and check out why they won't qualify you for $110,000 loan. The lender will let you know the reasons as to why your loan request was rejected.
Thanks
You will have to apply for a loan modification with your lender. It will depend upon the lenders discretion whether or not your request will be accepted. As you have equity in your property, then I think it would be difficult for you to qualify for a modification.
Hi Braddeyton,
You can speak to the lender and check out why they won't qualify you for $110,000 loan. The lender will let you know the reasons as to why your loan request was rejected.
Thanks
i have my own i want to finance a modular home
i like to know what it takes to get a loan from you my home is paid for and i need a loan for 4000,oo dollars Thank you Inge Murphy
just want to know if i would have a better chance at getting a mobile home loan with bad credit with a downpayment of $5000
Hi ingemurphy,
I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/loantalk/qualify.html
Take a look at it. Hope it helps you.
Hi Chris,
With a bad credit, it won't be possible for you to get a loan though you offer a down payment of $5000. After the real estate crisis, the lenders have stopped giving bad credit mobile home loans.
I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/loantalk/qualify.html
Take a look at it. Hope it helps you.
Hi Chris,
With a bad credit, it won't be possible for you to get a loan though you offer a down payment of $5000. After the real estate crisis, the lenders have stopped giving bad credit mobile home loans.
Hello, i need serious help have have a 1997 mobile home that i have paid on since then, it started at $30,000.00 and now its at 28,000.00. I want to refian or what ever i can do to get that back end down, please help
have a note requiring new finance on 1 yr old home with land, credit is not good now due to wife illness, where should i go. have 30000 equity, need 300000 loan
to jackie,
if you've equity in the property, then you can contact your current lender and apply for a refinance. you may even consult with other local lenders and check out if they can help you in this matter. just note that your credit score, income and debt to income ratio will be taken into consideration before the lender originates the loan for you.
to fred,
with a bad credit, it would be difficult for you to get a mortgage. however, i would suggest you to contact your present lender and check out whether or not he can help you in this matter.
if you've equity in the property, then you can contact your current lender and apply for a refinance. you may even consult with other local lenders and check out if they can help you in this matter. just note that your credit score, income and debt to income ratio will be taken into consideration before the lender originates the loan for you.
to fred,
with a bad credit, it would be difficult for you to get a mortgage. however, i would suggest you to contact your present lender and check out whether or not he can help you in this matter.
Hello! I recently been looking for a place to stay and foud a double wide on 2 acres for 37,000. My credit is screwed up cause I went through a divorce and that didn't help my credit at all. My credit score is 586. I was wondering do you think anybody would give me a loan?
could you give me phone numbers to call to inquire about refinancing of a a manufactured home at the Ramrod Senior Park? Thank you
I have poor credit, bad mortgage history, and no income. However, my husband has fair credit, a great income, and is a first time borrower. Do we both have to be listed on the loan in Texas? We have gotten mixed answers for this.
What would be the first step to establish credit after bankruptcy?