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 will like to buy a moble home with a 560 creditscore
Hi akeem!
Welcome to the forums!
With a credit score of 560, it will be difficult for you to qualify for any kind of mortgage. You will have to improve your scores and then look out for a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
With a credit score of 560, it will be difficult for you to qualify for any kind of mortgage. You will have to improve your scores and then look out for a loan.
Feel free to ask if you've further queries.
Sussane
we are looking at a double wide with land he land is not attached to the home it is a forcloser we want to offer them 25000 the land is worth that hing is the home the bank can not find he titles anyway a person can get a loan
Hi cn!
Welcome to the forums!
If the property is in foreclosure, it will be difficult for you to get a loan on it.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
If the property is in foreclosure, it will be difficult for you to get a loan on it.
Feel free to ask if you've further queries.
Sussane
Hey woz askin f i may be helped out of this constraint am going thru am a Kenyan with kids and wife its hard for me to cater for their needs earnin tha 100 dollars evrymonth i urgently need a lender of 3000 dollars to repay in 30 months to be able to start a bakery store please anyone?
Hi Mozaya,
You will have to contact a commercial lender and apply for a loan as you will be starting off a business with the loan amount. You should contact the local commercial lenders and check out if they can help you.
Thanks
You will have to contact a commercial lender and apply for a loan as you will be starting off a business with the loan amount. You should contact the local commercial lenders and check out if they can help you.
Thanks
just looking for a loan [ home improvement ] for 15,000 dollars,,the term of months,[ longest ] my house has been appraised at 56,000 already have the appraisal ,, owe 36,500.00 want a loan for home improvement and credit cards.'' its a mobile home double wide,large privite land,,home is with land.''looking for a lender,''my home is a conventional load.'' thanks
Hi cynthia,
If there is equity in the property, then you can contact the local mobile home loan lenders and apply for a home improvement loan. If you and your home meet all the required criteria, you will get a loan.
Thanks
If there is equity in the property, then you can contact the local mobile home loan lenders and apply for a home improvement loan. If you and your home meet all the required criteria, you will get a loan.
Thanks
been looking to get either a personal property loan or a mobile home loan. I cannot find anyone who will do this. do you know where I can obtain a loan. I called so many places, banks, mortgage co I do not know where else to call.
Me and my fiancé are tryin to buy our first home together. He has a score of 629 and I'm still in the process of getting mine built up. The house is a double wide but considered a mobile home because it has axles. How can we get a loan to buy this house with his score?
Hi anonymous,
Personal property loans and mobile home loans are both available in the market. Do you have any negative information mentioned in your credit report? If yes, then it might lower your chances of getting a loan. Moreover, a bad credit score and income may also lower your chances of getting a loan.
Hi Lindsay,
You will not be able to get a mortgage as you do not have a proper credit report. Your fiancé can try to get a FHA mortgage in his name in order to buy the mobile home.
Personal property loans and mobile home loans are both available in the market. Do you have any negative information mentioned in your credit report? If yes, then it might lower your chances of getting a loan. Moreover, a bad credit score and income may also lower your chances of getting a loan.
Hi Lindsay,
You will not be able to get a mortgage as you do not have a proper credit report. Your fiancé can try to get a FHA mortgage in his name in order to buy the mobile home.
My boyfriend has a credit score of 800 and mine is 690. The problem is that I am currently collecting unemployment. My boyfriend does work full time making about 3000mo.. I get income from my Father who is living with us. but I don't want to add him to the loan..How much could we qualify for on a purchase of a mobilehome? If we just used his income.. And why cant I use my Fathers' income without putting him on the loan?
Hi Guest!
Welcome to the forums!
Your boyfriend has a good income and credit score. So, it will be easier for him to qualify for a mortgage and buy a mobile home. You cannot use your father's income without him on the loan because in that case he will not be liable for the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
Your boyfriend has a good income and credit score. So, it will be easier for him to qualify for a mortgage and buy a mobile home. You cannot use your father's income without him on the loan because in that case he will not be liable for the loan.
Feel free to ask if you've further queries.
Sussane
Is it possible to obtain a clasd c loan 1yr. after a foreclose wirh a credit scorw of 570 approximately and 4year employment.? I also have a co signer qith excellent credit and over 15 years at his job.