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Mobile home loan – A less costly option to buy homes

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?

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.

    On the basis of land ownership:


  • 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.

  • On the basis of lending authority:


  • 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.

  • On the basis of other factors:


  • 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.

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 -

  1. 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.
  2. 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.

  3. 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.
  4. 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:


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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.

Related Readings
Related References:
I am looking for someone who will refi a 1975 double wide mobile, on a permanent foundation. We have 3.5 acres of land in Northern Cal.

Gary Culp
Posted on: 16th Nov, 2005 03:08 pm
hi,

welcome to mortgagefit forums.

mobile home older than 1977 is difficult to refinance. but don't lose hope as we are going to search it for you.

kindly sign up with us at http://www.mortgagefit.com/signup/index.html this is a free service and in this way we can forward your query to our network of lenders.

the appropriate lender is going to call you up and listen to your query and suggest the possible help.

god bless you.

for mortgagefit,
samantha
Posted on: 16th Nov, 2005 03:25 pm
I am trying to find a personal loan using my Mobile home as collateral. Our Mobile home is paid off and we own it. Value is probably around 55,000.00. We are looking to try to get a 10,000.00 dollar loan for repairs and improvement the only problem is our credit is not well at all. Is there any hope for us. We need a new roof and new windows and other needed work.
Posted on: 16th Dec, 2005 08:18 am
Hi Sandie,

Welcome to MortgageFit Forums.

I think that I have answered a similar question on this topic.

You can kindly check there. If you have any more doubts feel free to post it here.

God bless you.

for MortgageFit,
Samantha
Posted on: 16th Dec, 2005 11:28 am
Hello, I own a large 3 star MHP. I have 50 empty spaces. I have a deal with fleetwood going and can get new homes for about $19000. I need a lender to finance these homes, or my tennants who may have a credit score of between 550 - 600 with good rental history and on time car payments. Can anyone out there help me? contact me.
Posted on: 22nd Dec, 2005 11:27 am
Hi Bassmanben,

Welcome to MortgageFit Forums.

It's good to see your satisfaction with your payment record. That indeed helps to maintain a good credit record and lenders like to find customers making regualr payments. So, Finding a lender will not be a problem for you.

We will help you to get an appropriate lender for your requirement. I would like to request you to register yourself free of cost at http://www.mortgagefit.com/community/signup.php

This will help us to forward your query and will enable us to get the right lender contact you.

God bless you.

Thanks,
Samantha
Posted on: 22nd Dec, 2005 11:42 am
I am a Realtor in PA. I have this listed. Tons of people want it, no one can find financing. Does anyone have any resources that I can direct these buyer's?
Posted on: 03rd Jan, 2006 07:10 am
Hi Jason,

Welcome to MortgageFit Forums.

I agree with you that it is not always easy to find the correct source although it may be commonly available.

We are here to help people to find the financing based on their needs. If you wish you can refer our site and community so that we can guide your client appropriately.

We will be happy to help you and your clients in getting the best deal and appreciate your visit in our community.

If you have any queries, feel free to post it here.

God bless you.

Thanks,
Samantha
Posted on: 03rd Jan, 2006 11:22 am
I would like to buy this land but it has a 1967 mobile home on it an and I can not get financing for it. I have good credit and a sizable down payment. Can you help me with a reputable lender?
Posted on: 03rd Jan, 2006 10:15 pm
Hi Jimmy,

It's good to know that you have good credit and you will be able to make a reasonable amount of down payment. I don't think there should be any problem in getting the loan.

Our community comprises of a group of lenders who always provide their services that benefit borrowers the most. These lenders provide a variety of loan programs and since your credit profile is up to the mark, I am sure that you will be able to get the best from the available programs.

What I would suggest is that you sign up with us and provide us with the loan requirements and other relevant details. This will help us to send your loan request to our Customer Care Department. The Department will then contact the lenders and do their very best to help you with the financing.

Regards,
Jessica.
Posted on: 03rd Jan, 2006 10:42 pm
Looking to refinance to take the Ex off the loan or i wil hva eto sell and my kids and i will be out looking for a place
Posted on: 05th Jan, 2006 03:21 pm
Hi Ameeae,

Welcome to MortgageFit Forums.

You seem to be quite distressed. I shall advise you to face the situation strongly. There will be definite ways to come out of the problem, don't worry.

I guess that you want to remove someone's name off the existing mortgage and that is why you want to refinance. I personally feel this is a better option rather than selling your home. This is because it will take some time before you can get a suitable home.

Can you tell me in details about your situation. Then may be I can come up with a better advice.

Waiting to hear from you.

God bless you.

For MortgageFit,
Samantha
Posted on: 05th Jan, 2006 03:58 pm
I own a 1981 single wide mobile but rent the property the property owner lives on the same land with a 1972 trailer with a large addition it is not on a foundation but it is in no way moveable. She would like to sell us the land and her dwelling i've been preapproved for loans and have good credit but no one will finance because it was once a mobile. Can you help
Posted on: 07th Jan, 2006 05:54 pm
Hi, Jamir

Surely we can help you. We have a community of lenders with us who specilizes n various loan programs and I am preety much confident that they will also help you.

Please send me few more details like what is your credir score and all so that i can forward this quesry to the lenders.

There are various lenders in market who deals in various aspect of mobile home loans.

Thanks

Samantha
Posted on: 07th Jan, 2006 08:36 pm
Dear Sir or Madam,

We would like to purchase a property for sale. It is a 1991 mobile home (singlewide) on 2.4 acres with a 30x50 garage in Vine Grove Kentucky. The problem is, the M/H is not on a permanent foundation, so we are having difficulty getting financing. We have 3,000.00 to use for downpayment. Please contact us if you finance this kind of property.

Thank You,

Dennis & Karen Jump

907-350-4387 Cell

907-336-7903 Home
Posted on: 18th Apr, 2006 07:37 pm
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