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:
wife gross income 1700 month my is unempoment is 390.00 per week our loans are 560.00 amonth house car loan 166.00 and creitd card is 250.00 could we get loan and what rate. we will need 75000.00 to pay off every thing and do thing arond house it would let us have about 350.00to 400.00 dollar more a month thak you
welcome becky,
you will have to contact the local lenders and apply for a loan. i guess you have a mortgage on your present property and want to refinance that existing mortgage. you can contact your present lender or other local lenders for the same. depending upon the equity that you have in the property, your income, etc., the lender will let you know whether or not you will get a refinance. this community, too, has a large number of lenders. you can seek a no obligation free mortgage consultation from them. this will help you know whether or not you would get a loan.
you will have to contact the local lenders and apply for a loan. i guess you have a mortgage on your present property and want to refinance that existing mortgage. you can contact your present lender or other local lenders for the same. depending upon the equity that you have in the property, your income, etc., the lender will let you know whether or not you will get a refinance. this community, too, has a large number of lenders. you can seek a no obligation free mortgage consultation from them. this will help you know whether or not you would get a loan.
I have a moble home with an attached room, bath, utillity room addition. I currently have a loan of 54,000 which is at a hight interest rate. This is a 15 year loan. I would like to see if I could qualify for a 10 year loan at a lower interest rate.
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
poor credit, in need of better trailer house then what I have three kids and one on the way. My mom has good credit willing to co-sign, I got my car that way in May finished paying on it so I would have title has well, valued 5000. Also have truck title in good condition. Belcourt Tribe has trailers for 8600 having hard time getting a loan they want 1700 down. 700 for skirting. Our tribe has programs so I would get it free plus I'm just moving my old trailer and putting new one there. The banker doesn't believe me!! Also I have land in Blecourt and Montana taht I share undivide 80 acres on most spots could I use that for help.
Hi!
Welcome to forums!
To Warren,
You can contact your present lender and apply for a refinance. Depending upon your financial situation and credit, your lender will let you know whether or not you would get a refinance. However, it's not mandatory to refinance the loan with your current lender. You can get in touch with other local lenders and apply for a refinance.
To Jen,
If your mother is ready to co-sign for the mortgage, then there are chances that you may qualify for a loan. However, she should have excellent credit and income in order to cosign for the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Warren,
You can contact your present lender and apply for a refinance. Depending upon your financial situation and credit, your lender will let you know whether or not you would get a refinance. However, it's not mandatory to refinance the loan with your current lender. You can get in touch with other local lenders and apply for a refinance.
To Jen,
If your mother is ready to co-sign for the mortgage, then there are chances that you may qualify for a loan. However, she should have excellent credit and income in order to cosign for the mortgage.
Feel free to ask if you've further queries.
Sussane
we want to sell our 2006 mobile on our owned lots we do not have the foundation they want now can a loan be obtained with a really good qualified buyer
I am newly married. My husband has a mortgage on a house that his parents live in and we have found a forclosed mobile home with 2 acres land for a really good prices. He has a credit score of 535 and i have a credit score of 606. Do you think that we could get financeing for this mobile home?
i am lookking to buy a mobile home my credit score is 525 i am looking for a loan for this purchase. i am needing around 26000.oo i am living with my wifes parents right now i have a full time job i bring home between 500 ad 600 a week what can i do
To Sona,
As you do not have foundations for your mobile homes, it will be difficult for you to qualify for a conventional mobile home loan. However, you can go for personal property loans which you can get from the retailers who sell mobile homes.
To Tammie,
With a credit score of 535 and 606, it would be difficult for you to qualify for a mobile home loan. Moreover, your husband already has a loan in his name. It would be better if both of you can take steps to improve your credit score first. Also, your husband's parents should refinance the loan in their names. Once these things fall into place, you can get approved for a mortgage.
To Chris,
With a score of 525, you won't be able to get a mortgage. You will have to improve your score first and then look out for loans. In order to get a conventional loan, you would require a score of 720. For FHA loan, your credit score should be around 620.
As you do not have foundations for your mobile homes, it will be difficult for you to qualify for a conventional mobile home loan. However, you can go for personal property loans which you can get from the retailers who sell mobile homes.
To Tammie,
With a credit score of 535 and 606, it would be difficult for you to qualify for a mobile home loan. Moreover, your husband already has a loan in his name. It would be better if both of you can take steps to improve your credit score first. Also, your husband's parents should refinance the loan in their names. Once these things fall into place, you can get approved for a mortgage.
To Chris,
With a score of 525, you won't be able to get a mortgage. You will have to improve your score first and then look out for loans. In order to get a conventional loan, you would require a score of 720. For FHA loan, your credit score should be around 620.
I am trying to secure a PPL on a 1972 mobile home that is located on property that you pay a space rent. What can I do?
Hi Madeline,
In order to get a personal property loan for your mobile home, you need to contact the retailers who sell mobile homes. They will be able to help you in getting a personal property loan.
Thanks
In order to get a personal property loan for your mobile home, you need to contact the retailers who sell mobile homes. They will be able to help you in getting a personal property loan.
Thanks
what about replacement home loan..I have wo acears ..2 mobil homes ..one daughter lives in ..both very old need to replace under grandfather law
Hi Clouie,
There are some State Housing Authorities who offer replacement home loans. For example Main State Housing Authority offers such loans to properties 20 years old located on land owned or leased land. You need to contact local lenders and check out with them if you could get such a loan in your state.
There are some State Housing Authorities who offer replacement home loans. For example Main State Housing Authority offers such loans to properties 20 years old located on land owned or leased land. You need to contact local lenders and check out with them if you could get such a loan in your state.
my mobile home is new (late 2009) and i own it free and clear. i want to get a mobile home equity loan of about $20,000.00. is this possible and where do i fine them?
Hi KC!
Welcome to forums!
As you own the property free and clear, you will be able to get a mortgage on it provided you satisfy the required criteria of the lender. You can contact the local mobile home loan lenders and check out the rates and terms that they can offer you. I hope the property has a permanent foundation. If not, then you may not be able to get a conventional mobile home loan. In that case, you'll have to go for a personal property loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you own the property free and clear, you will be able to get a mortgage on it provided you satisfy the required criteria of the lender. You can contact the local mobile home loan lenders and check out the rates and terms that they can offer you. I hope the property has a permanent foundation. If not, then you may not be able to get a conventional mobile home loan. In that case, you'll have to go for a personal property loan.
Feel free to ask if you've further queries.
Sussane