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 went today to look at some mobile homes that I had been researching and I fell in love with one in particular....Only problem is that I am 25 yrs old and I have no established credit, the only credit I have is a lump sum I paid off in 3 payments...long story short in order for me to get this MH she says i would be asked to pay at least a 40% down payment which comes out to be around 25,000 dollars that I don't have...What are my options as far as getting some help coming up with that type of money?
Hi Brooklyn,
You can take help from your friends or relatives who can co-sign for the mortgage. The lender will take into account the co-signer's credit score and may give you a mortgage at a 20% down payment. Or else, you can ask your friends or relatives to give you the down payment as a gift so that you can purchase the property.
Thanks
You can take help from your friends or relatives who can co-sign for the mortgage. The lender will take into account the co-signer's credit score and may give you a mortgage at a 20% down payment. Or else, you can ask your friends or relatives to give you the down payment as a gift so that you can purchase the property.
Thanks
Hi Jessica: How I know if I qualify for a loan to buy a mobile home, only I need $10,000.
i am renting a mobile home it is on 5 acres of land and my landlord wants to sell the land and home he is asking 60000 most of the land is not useable and the water is not drinkable should i get it appraised before i buy,i have done a lot of work to this property myself and i am also wondering what kind of loan i should try to get,i would like to sell the mobile home and buy a double wide? :?
Hello, I own free of mortage a double wide mobile home located on a 3 acres land that I own as well free of mortgage. I would like to know what are my equity loan options. Thank you.
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
As the loan as well as the mobile home, both, are free and clear, you'll be able to get a home equity loan. However, you should have a good credit score and income in order to qualify for the mortgage. You should contact the local mobile home loan lender in order to get this loan.
We have an acre and a half in pritchardville sc with well and septic already there the land is paid for but we have an irs lein which they have accepted an offer in compromise of 63,00 dollars which will not be released till money is paid then that lein will be immediately released which is causing our credit score right now to be low. We want to purchase a double wide and borrow enough to pay our offer in compromise but have not been able to find anyone to work with us. The property by itself should easily appraise at 1000,000,an appraisal done in 1996 appraised at 125,000.
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
Hi Guest,
As there is an IRS lien on the property, the lenders are not ready to give you a mortgage. You need to pay off the lien first and get a lien release certificate from the IRS. Then you can apply for mortgage.
Thanks
As there is an IRS lien on the property, the lenders are not ready to give you a mortgage. You need to pay off the lien first and get a lien release certificate from the IRS. Then you can apply for mortgage.
Thanks
I have bad credit my boyfriend has student loans we would like a mobile home would we qualify
Hi Melissa Polito!
Welcome to forums!
With a bad credit, it won't be possible for you to get a mobile home loan. You should have a credit score of 620 to get a FHA loan and 700-720 in order to get a conventional mobile home loan. If you do not have the required credit score, the lenders will not be ready to give you a mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
With a bad credit, it won't be possible for you to get a mobile home loan. You should have a credit score of 620 to get a FHA loan and 700-720 in order to get a conventional mobile home loan. If you do not have the required credit score, the lenders will not be ready to give you a mortgage.
Feel free to ask if you've further queries.
Sussane
I have been trying to sell my home but can't seem to find anyone that will finance it. it is a single wide on my land but not permanent foundation. My loan on it is land/home package and it needs to be sold that way. its a 1997 or 1998 modle. Can you help?
have land we are looking at and would like to put a home on it we have bad credit
Hi countrybumpkin,
This is not a mortgage company which gives loan to people. Rather this is a mortgage community wherein people share their finance related issues and get suggestions. As your property does not have a permanent foundation, the lenders are not ready to offer a loan. The buyers who want to purchase your property should contact the retailers who sell mobile homes and get a personal property loan.
Hi Vicky,
It won't be possible for you to get a mobile home loan with bad credit. You will have to improve your credit first and then look out for loans. You can check out the given page in order to know some steps to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Thanks,
Jerry
This is not a mortgage company which gives loan to people. Rather this is a mortgage community wherein people share their finance related issues and get suggestions. As your property does not have a permanent foundation, the lenders are not ready to offer a loan. The buyers who want to purchase your property should contact the retailers who sell mobile homes and get a personal property loan.
Hi Vicky,
It won't be possible for you to get a mobile home loan with bad credit. You will have to improve your credit first and then look out for loans. You can check out the given page in order to know some steps to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Thanks,
Jerry
I can't find a bank that will make a mtg loan on a established mobile home ...the credit union will make a loan on the property only but at 30% down and 1500.00 closing cost. I have good credit and own my home I am buying this for my son.