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:
My wife and I have the opportunity to buy a foreclosed doublewide mobile home. The home is a very good price and is 3 blocks from the ocean. The home will be used as a year round rental property. The total cost is $140,000. She has been looking for financing and is having a tough time finding someone that we finance the purchase due to the economic times. We would easily qualify for the loan.
Can you recommend a few avenues to find a mortgage? Thank you for your help.
Can you recommend a few avenues to find a mortgage? Thank you for your help.
Welcome TO,
You can speak to the local lenders of the area and check out the terms and options they are offering. A bit of mortgage shopping before going for a mortgage plan will help you in the long run. Getting a mortgage will also depend upon your credit score and income.
You can also contact the lenders of this community through a no obligation free mortgage consultation (refer to Niicss's post above). I hope that will help you.
You can speak to the local lenders of the area and check out the terms and options they are offering. A bit of mortgage shopping before going for a mortgage plan will help you in the long run. Getting a mortgage will also depend upon your credit score and income.
You can also contact the lenders of this community through a no obligation free mortgage consultation (refer to Niicss's post above). I hope that will help you.
I am in an all equity loan situation and getting no where with payments. I had not idesa this was not a regular fixed loan that I had to begin with. With the trun donw in Market value is there any solution. I owe $72,000 and 2 companies said they would finace me if the mobile home and property valued at $100,000. I told them not without improvements and they dropped us like a hot potato. Is there any help? :(
we have a moblie home for sell, because we had to buy a house to take careof my mother and Grandma too. Now my sister has no job and I on
disable and both of us is not have the money to keep, both places going on. please we need a buyer as of today.
disable and both of us is not have the money to keep, both places going on. please we need a buyer as of today.
Welcome Eilynn Resler,
You can speak to the lender and check out for the options of deed in lieu foreclosure or a short sale. However, both these processes can lower your credit score. If you want to retain the property, you can look out for a loan modification with the lender. If the lender accepts a loan modification, he will give you an alternative payment plan to pay off the dues.
You can speak to the lender and check out for the options of deed in lieu foreclosure or a short sale. However, both these processes can lower your credit score. If you want to retain the property, you can look out for a loan modification with the lender. If the lender accepts a loan modification, he will give you an alternative payment plan to pay off the dues.
HOW HARD IT IS TO GET A LOAN WITH A SCORE OF 628 :oops:
Hi LATESHA,
I think you should try out for a FHA loan. If you have a good income and there are no late payments, charge offs or collections then FHA lenders can offer you mortgage. You can speak to the lenders of your area and check if you will be able to get a loan or not.
You can also speak to the lenders of this community and seek a no obligation free mortgage consultation. Check out Niicss post above to get the link. Let's hope they will be able to help you.
Thanks
I think you should try out for a FHA loan. If you have a good income and there are no late payments, charge offs or collections then FHA lenders can offer you mortgage. You can speak to the lenders of your area and check if you will be able to get a loan or not.
You can also speak to the lenders of this community and seek a no obligation free mortgage consultation. Check out Niicss post above to get the link. Let's hope they will be able to help you.
Thanks
I'm interested in purchasing a 1993 14x80 Sterling Mobile Home which is in a rental lot park. They are offering it at $11,000, but I'm not sure that is a fair value. How can I find that out? Thanks.
Hi rhauver
You can contact an appraiser and ask him to do a appraisal of the property. This will help you to know the fair market value of the property. However, you should inform the seller that you will take the help of an appraiser in order to know the fair market value of the property.
Thanks.
You can contact an appraiser and ask him to do a appraisal of the property. This will help you to know the fair market value of the property. However, you should inform the seller that you will take the help of an appraiser in order to know the fair market value of the property.
Thanks.
I live in KY and am paying $600 a mo (rent to own) CLAYTON HOME 28X52 3 BEDROOMS 2 BATHROOMS
DINNING ROOM, FIRE PLACE, great shape asking 19,000.00 I do not have good credit, my friend has no credit... we do not have land we have land we can move it on, we want the loan in our name they owe a local bank. How can we get the loan put in our name with no land our local banks will not fiance without owning land "angela.hatton@live.com"
[Link deactivated as per forum rules. Thanks.]
DINNING ROOM, FIRE PLACE, great shape asking 19,000.00 I do not have good credit, my friend has no credit... we do not have land we have land we can move it on, we want the loan in our name they owe a local bank. How can we get the loan put in our name with no land our local banks will not fiance without owning land "angela.hatton@live.com"
[Link deactivated as per forum rules. Thanks.]
We bought a mobile home on some land a year and a half ago, and got a mortgage for the whole thing together. Is it possible to sell the mobile home and build? What must be done?
Hi,
Welcome to forums!
To angela and tracie,
As it is a mobile home, the lenders will not agree to transfer the mortgage in your name without owning the land. You can speak to the lenders and check if you can get a personal loan in this case. But again you should note that you will be charged high interest rates in this case.
To texas,
There are chances that the lender may consider the loan due if you try to sell off the mobile home. However, I would suggest you to check you loan docs properly and consult the lender before selling it.
Sussane
Welcome to forums!
To angela and tracie,
As it is a mobile home, the lenders will not agree to transfer the mortgage in your name without owning the land. You can speak to the lenders and check if you can get a personal loan in this case. But again you should note that you will be charged high interest rates in this case.
To texas,
There are chances that the lender may consider the loan due if you try to sell off the mobile home. However, I would suggest you to check you loan docs properly and consult the lender before selling it.
Sussane
I am going out tomorrow to look at a 2008 singlewide in a park here in maine. I have been at my job almost a year. I own my 2006 Dodge Caravan outright. I have between 750 and 800 credit (the last time I checked a year and a half ago). And don't carry alot of debt month to month.
BUT...I can't find a lender online that lends to Mainers. Also, I couldn't find anyone to "prequalify" me. I don't want to go through this process and then find out I don't make enough.
The home I am looking at is about 37000. I make about $1900 a month.
Help?!
BUT...I can't find a lender online that lends to Mainers. Also, I couldn't find anyone to "prequalify" me. I don't want to go through this process and then find out I don't make enough.
The home I am looking at is about 37000. I make about $1900 a month.
Help?!
Hi Maggie,
The credit score that you have mentioned in your post seems to be quite good. So I think the lenders should have approved the loan for you. But did the lenders give you any reason as to why they are not giving the loan or pre-qualifying your loan? The lenders will also want to check your income history. If you do not have a stable income history, the lenders may not give you a loan.
You can speak to the lenders of this community and seek a no obligation free mortgage consultation. You can refer to the post above by Niicss and get the link. They will help you know what kind of rates and terms you may get. They will also help you to know about the market rates and terms.
Thanks
The credit score that you have mentioned in your post seems to be quite good. So I think the lenders should have approved the loan for you. But did the lenders give you any reason as to why they are not giving the loan or pre-qualifying your loan? The lenders will also want to check your income history. If you do not have a stable income history, the lenders may not give you a loan.
You can speak to the lenders of this community and seek a no obligation free mortgage consultation. You can refer to the post above by Niicss and get the link. They will help you know what kind of rates and terms you may get. They will also help you to know about the market rates and terms.
Thanks
I guess I should have been more specific with prequalify...
I was told that mobile home loans DO NOT get prequalified. You only get a loan when you pick a house. But how in the world does one know what they qualify for. I think its like a lending bait and switch for people to pick something and then are told they cannot afford it, when, if they KNEW what they could afford, they would pick something in their budget.
I want to know how much a loan would be before I waste anyone's time picking something I cannot afford. Right now I can only guess.
Then, I am looking at bank websites and all sorts of people talk about mortgages...but I worked for a bank before and I KNOW that when they say mortgage, they don't mean a loan for a singlewide mobile home in a park. And I am checking with lenders online and they don't seem to want to do loans in Maine even though there are oodles of mobile homes around.
It is a little frustrating.
I guess I will have to trust the park manager and get his input.
Buying a home is very off-putting.
I was told that mobile home loans DO NOT get prequalified. You only get a loan when you pick a house. But how in the world does one know what they qualify for. I think its like a lending bait and switch for people to pick something and then are told they cannot afford it, when, if they KNEW what they could afford, they would pick something in their budget.
I want to know how much a loan would be before I waste anyone's time picking something I cannot afford. Right now I can only guess.
Then, I am looking at bank websites and all sorts of people talk about mortgages...but I worked for a bank before and I KNOW that when they say mortgage, they don't mean a loan for a singlewide mobile home in a park. And I am checking with lenders online and they don't seem to want to do loans in Maine even though there are oodles of mobile homes around.
It is a little frustrating.
I guess I will have to trust the park manager and get his input.
Buying a home is very off-putting.