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:
We bought a mobile home from an individual. $28000.00 price. $3000.00 down at 6% interest for 10 years. Is any of this deductible?
If you have taken the loan from a Fannie Mae or Freddie Mac backed lender, then you will be getting tax deductions. If you have taken loan from a private lender, then tax deductions will depend upon your your income.
I am looking for a loan to pay off some bills and want to use my mobile home ,no foundation,own the land,no mortage,in kansas, can you help me find a lender.
How do the taxes work on a manufactured home on a rented lot? Is it like personal property (automobile)?
Hey Stan...if your mobile home does not have a foundation, it will be difficult for you to get a loan on that property. Rather you will have to look out for a personal property loan.
lcrebo...if the property is situated on a rented lot, then I guess, then it will be considered as a personal property and will be taxes accordingly.
lcrebo...if the property is situated on a rented lot, then I guess, then it will be considered as a personal property and will be taxes accordingly.
Where can I apply for a bad credit mobile home loan?
Welcome Angela,
It will difficult for you to get a mobile home loan if your credit is not good. You will have to improve your credit first and then look out for a loan. To know more about improving your credit, check out the given page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
It will difficult for you to get a mobile home loan if your credit is not good. You will have to improve your credit first and then look out for a loan. To know more about improving your credit, check out the given page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
i have nobody to blame but myself my credit is horroble am 44 an was forced to live back at my moms an she is moving out of state i have no other family to ask for help am not asking for a free handout am working have a good job an am trying so hard to get a roof over my head i do not card what color, or year model what it looks like as long as it has 4 walls am happy do you have anything that i could apply for here in alabama please help me
DOES THE 7500 TAX CREDIT AND FIRST TIME BUYER ASSISTANCE APPLY FOR MOBILE HOME OR LAND HOME DEALS
I'm currently looking to buy my own home. I have found a couple properties I am interested in. The mortgage companies I have spoken with say my debt to income ratio is too high. One property is 26900 and the other property is 35000...both payments would be around 300 or less than that monthly. Is there any other mortgage companies you could suggest that can help me with this? All rental property in my area is 450 or up monthly. In my opinion, why pay someone to live in their house when I can pay less monthly towards owning my own home? Any help will be much appreciated....Thank you!!!
I want to purchase a mobile home on a ten acre lot. It will be my only residence, but due to work at the moment, I will reside in the home 3 of the 4 days of the week. Would it qualify as my primary residence?
thanks adonis....same thing the mortgage companies say....I just dont understand why I cant get a loan for $35000, its not a significant amount of money according to all the mortgage companies Ive spoken with...and seeing how the "economy is" you would think that they would want to sell something...my truck will be paid off in 15 months...then I will have practically no debt....but then the house I want will be gone...I just dont get it...my cousin got a loan for 65000 and had the same amount of debt as i do, we work in the same place, make the same amount of money....now she has a 600/m house payment she can barely afford, but i cant get loan with a payment of 300/m which i know i can afford....just makes no sense to me....and sorry im venting a little on you guys...just got turned down today for a mortgage by the 6th company....guess its time to give up for now....thanks again for your help!!!!!
My back is telling me that rules have changed and I now can not get a fix 30 year mortgage on my home. where can I turn to correct this problem. I have a mortgage that will increase in the next two years
Hi ingramhuffman!
Welcome to forums!
Did you check it out with other lenders? I think you should speak to a few lenders and check if they are ready to give you a loan. You can also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will help you to know whether you will get a loan or not. You will also come to know about the type of rates you can expect to get.
Sussane
Welcome to forums!
Did you check it out with other lenders? I think you should speak to a few lenders and check if they are ready to give you a loan. You can also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will help you to know whether you will get a loan or not. You will also come to know about the type of rates you can expect to get.
Sussane