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 Catherine,
Did the banks give you any reason as to why they won't lend you money for a mobile home? If not, then you should ask them and clarify the matter. If you don't want to go with the credit union, then you can even speak to the retailers who sell mobile homes in order to get a personal property loan. However, such loans are available at a higher interest rate.
Did the banks give you any reason as to why they won't lend you money for a mobile home? If not, then you should ask them and clarify the matter. If you don't want to go with the credit union, then you can even speak to the retailers who sell mobile homes in order to get a personal property loan. However, such loans are available at a higher interest rate.
I would like to apply for a loan or equity line credit on a mobile home
I have purchesed. Please advise a phone number or e-mail address I could
e-mail the details.
Thank you,
Jean Henderson
I have purchesed. Please advise a phone number or e-mail address I could
e-mail the details.
Thank you,
Jean Henderson
I am a disabled female adult , I have a low income and need to purchace a double wide or modular home i have a 14 by 60 as a trade in which would be the best to get a loan
I need to know who does Va home improvement loans for mobile homes
i have been trying to refinance my property for sometrime now so that i can replace some of my appliances my problem is that i have a very low mortgage and only want to take out about $10,000 to keep my payment affordable. is there anyone out there that is will to help us.
[link deactivated as per forum rules. thanks.]
[link deactivated as per forum rules. thanks.]
Hi!
Welcome to forums!
To Jean,
You need to contact your local mobile home loan lenders in order to get a mortgage. They will go through your credit report in order to check your credit score before giving you a loan. Apart from this, your financial stability and debt to income ratio are other factors which are taken into consideration before giving you a mortgage. The lender will let you know whether or not you would get a loan.
To Debbie,
You can go for a FHA loan in order to buy a double wide or a modular home. You should contact the local FHA backed lender and apply for a loan. If you satisfy the required criteria of the lender, you would get the mortgage.
To Patti,
As far as I know, VA offers Home improvement loans. However, you need to contact your lender and check out whether or not he would offer you such a loan for your mobile home.
To Maxine,
Lenders are generally not ready to offer a loan of such a small amount. You can contact the retailers who sell mobile homes and check out whether or not you can qualify for a personal property loan. However, if you qualify for such a loan, you may have to pay a higher interest rate compared to a conventional loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Jean,
You need to contact your local mobile home loan lenders in order to get a mortgage. They will go through your credit report in order to check your credit score before giving you a loan. Apart from this, your financial stability and debt to income ratio are other factors which are taken into consideration before giving you a mortgage. The lender will let you know whether or not you would get a loan.
To Debbie,
You can go for a FHA loan in order to buy a double wide or a modular home. You should contact the local FHA backed lender and apply for a loan. If you satisfy the required criteria of the lender, you would get the mortgage.
To Patti,
As far as I know, VA offers Home improvement loans. However, you need to contact your lender and check out whether or not he would offer you such a loan for your mobile home.
To Maxine,
Lenders are generally not ready to offer a loan of such a small amount. You can contact the retailers who sell mobile homes and check out whether or not you can qualify for a personal property loan. However, if you qualify for such a loan, you may have to pay a higher interest rate compared to a conventional loan.
Feel free to ask if you've further queries.
Sussane
My property is valued at 250,000 and I owe 58,000. I want to refinance. Can you help?
My neighbors have a two yr old mobile home in a park and their tenanat has passed away they are willing to let us take over payments but our credit score is bad how can we do this
Looking to refinance my rental, Helppppppppppppppppppppppp
I have went to two local banks already to buy a mobile home. I have 8000$ worth of land for colattoral and have been denied twice. my credit score is 575. could i get a fha loan for first time homeowner and if so how do i check into that? I live in kentucky if that makes a difference.
Hi kimofiowa,
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about40823.html#172601
Take a look at it. Hope it helps you.
Hi Avinash,
Do you have equity in your property? If yes, then you may apply for a mortgage refinance. Depending upon your credit score, income and debt to income ratio, you may or may not qualify for a mortgage refinance. I would suggest you to contact the local manufactured home loan lenders and apply for a loan.
Hi Guest,
With a 575 credit score, it won't be possible for you to qualify for a loan. If you want a FHA loan, then you need to improve your credit score first and then apply for a loan. 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
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about40823.html#172601
Take a look at it. Hope it helps you.
Hi Avinash,
Do you have equity in your property? If yes, then you may apply for a mortgage refinance. Depending upon your credit score, income and debt to income ratio, you may or may not qualify for a mortgage refinance. I would suggest you to contact the local manufactured home loan lenders and apply for a loan.
Hi Guest,
With a 575 credit score, it won't be possible for you to qualify for a loan. If you want a FHA loan, then you need to improve your credit score first and then apply for a loan. 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
Fed regs have a stated percentage of rental properties allowed in condo associations. Are there federal regs as to allowable percentages of rentals vs. owner occupants for mortgages where the lot owners own the park as an association? In other words, if a large percentage of the lot owners rent their properties out for income purposes, would a new owner have a problem obtaining a government-insured mortgage?
I don't think there would be a problem for the new owner to get a government insured mortgage as the other properties are occupied by tenants. If the properties would have been non-occupied, then there would have been a problem for the new buyer to obtain a mortgage.