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 I'm looking for repo mobilehomes.
Hi Blinkers,
You can check out the given page in order to know some steps to improve your credit:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Hi Karenh,
You can contact the retailers who sell mobile homes in order to know about repossessed mobile homes.
You can check out the given page in order to know some steps to improve your credit:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Hi Karenh,
You can contact the retailers who sell mobile homes in order to know about repossessed mobile homes.
no permanent foundation, rented lot. We have every good credit and and are looking for FHA very low down payment and longest loan term. in other words lowest possible monthly payment. What products are available and what are general terms for this situation. This might possibly become primary home.
Looking to purchase the above in Naples,Florida - Looking to borrow $50,000.00 - We would pay the difference - It is located in a Developed over 55 park - We would own the lot and pay a monthly fee for services etc lawnmowing,outside water,clubhouse&pool -- What type of loan would we apply for ??- what is the rate -- Asking price was $107,000.00 but has dropped down below $93,500.00 - please advise
I would like to refinance my mobile home to buy land to put it on. What and where do I have to do to get it done with a mobile home?
We are purchasing a stick home already. Have good credit scores 700. Have high debt-income ratio. Mobile Home built 1970, covered and is on a foundation. They are asking $70,000. Any chance of financing? Seaside, Oregon
How or whom should we contact to try for this type of financing? We have found a mobile home on a @2acre lot for close to 50% discount. We are very interested in getting financing for this ASAP.
hi!
welcome to forums!
to arnie,
as your mobile home does not have a permanent foundation, it will be difficult for you to get a conventional mobile home loan. however, you can apply for personal property loans from the mobile home retailers. but you should keep in mind that these loans would come at a higher interest rate.
to howard,
you will have to apply for mobile home loans. you can go for either conventional or fha home loans. you should contact the local lenders and apply for loans. depending upon the credit score that you have, your financial situation and your debt to income ratio, you'll be able to get a mortgage. your lender will let you know whether or not you would qualify for a loan.
to barry,
you can contact your present mobile home loan lender and apply for the refinance of the mobile home loan. depending upon the equity that you have, your income, your credit score and the debt to income ratio, you will be able to get a refinance.
to barbara,
mobile homes build prior to 1976 does not qualify for loans. you should speak to the lenders who give personal property loans. you may get such loans to purchase your mobile home.
to redhair,
you should contact the local mobile home loan lenders in order to get a mortgage. they will judge your situation and let you know whether or not you would get a loan.
feel free to ask if you've further queries.
sussane
welcome to forums!
to arnie,
as your mobile home does not have a permanent foundation, it will be difficult for you to get a conventional mobile home loan. however, you can apply for personal property loans from the mobile home retailers. but you should keep in mind that these loans would come at a higher interest rate.
to howard,
you will have to apply for mobile home loans. you can go for either conventional or fha home loans. you should contact the local lenders and apply for loans. depending upon the credit score that you have, your financial situation and your debt to income ratio, you'll be able to get a mortgage. your lender will let you know whether or not you would qualify for a loan.
to barry,
you can contact your present mobile home loan lender and apply for the refinance of the mobile home loan. depending upon the equity that you have, your income, your credit score and the debt to income ratio, you will be able to get a refinance.
to barbara,
mobile homes build prior to 1976 does not qualify for loans. you should speak to the lenders who give personal property loans. you may get such loans to purchase your mobile home.
to redhair,
you should contact the local mobile home loan lenders in order to get a mortgage. they will judge your situation and let you know whether or not you would get a loan.
feel free to ask if you've further queries.
sussane
We only owe 10,000 on a 1200 sq ft fleetwood 1996. Would like a loan to put metal roof and new windows on this home. is there a program or refinance to do this?
i am trying to buy a home for 130,000.00. 32x80 on 18 acres of land. i have 4500.00 for down payment. 617 credit score. can u help me?
YES I AM TRYING TO GET A LOAN
Hello,
The question that i have is that if we can obtain a line of credit on a moble house that is located in Palmer tx.
[E-mail address and contact details deleted as per forum rules. Thanks.]
The question that i have is that if we can obtain a line of credit on a moble house that is located in Palmer tx.
[E-mail address and contact details deleted as per forum rules. Thanks.]
i was told we could not get a va loan, my husband is a veteran and we would like a va loan for a mobile home in el cajon, ca we would like to get a loan from anywhere from 1000.000 to 2000.000 do you assist and what do we need?
hi bubba,
you can refinance your existing mortgage and take cash out. you can use the mortgage proceeds to improve your home.
hi bobby,
with a credit score of 617, you will be able to get a fha loan. conventional loans are not available with such a low credit score. i would suggest you to contact local fha lenders and apply for loans.
hi patty,
you need to contact the local mobile home loan lenders in order to get a loan. they will check out your financial situation, credit score, debt to income ratio, etc. and will let you know whether or not you would get a mortgage.
hi yvonne,
if you have equity in your mobile home, then you would be able to get a home equity loan. apart from this, the lender will check out whether or not you satisfy the other required criteria. if you satisfy those criteria, you'll be pre-approved for a mortgage.
hi yolanda,
this is not a mortgage company. you need to contact your local mobile home loan lenders in order to get a va loan. did the lender give you any reason as to why they won't give you a va loan?
thanks
you can refinance your existing mortgage and take cash out. you can use the mortgage proceeds to improve your home.
hi bobby,
with a credit score of 617, you will be able to get a fha loan. conventional loans are not available with such a low credit score. i would suggest you to contact local fha lenders and apply for loans.
hi patty,
you need to contact the local mobile home loan lenders in order to get a loan. they will check out your financial situation, credit score, debt to income ratio, etc. and will let you know whether or not you would get a mortgage.
hi yvonne,
if you have equity in your mobile home, then you would be able to get a home equity loan. apart from this, the lender will check out whether or not you satisfy the other required criteria. if you satisfy those criteria, you'll be pre-approved for a mortgage.
hi yolanda,
this is not a mortgage company. you need to contact your local mobile home loan lenders in order to get a va loan. did the lender give you any reason as to why they won't give you a va loan?
thanks
I want to refinance my new home and all the work we did ror it. It is on 35 acrers , my credit fell to 618, I'm working to get it up, my wife is ok. I'm looking for 147,000.00