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 am looking for a loan to purchas a 3-4 year old 16 72 mobile home already set up in leased land park. I can purchase this home for only 16,000...however my credit is so ugly the banks won't talk...I am retired but have more than enough $to pay....help.....where can I look?
Hi mar,
If your credit is bad, then it will be difficult for you to get a loan. In order to get a FHA loan, you should have at least a score of 580 and if you want to take a conventional loan, you should have a credit score of 700-720.
You can try and improve your credit score first and then look for a loan. To know more about improving credit, check out the following link:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Thanks
If your credit is bad, then it will be difficult for you to get a loan. In order to get a FHA loan, you should have at least a score of 580 and if you want to take a conventional loan, you should have a credit score of 700-720.
You can try and improve your credit score first and then look for a loan. To know more about improving credit, check out the following link:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Thanks
We are trying to buy a 1985 Mobile Home. The price is 32,500 but the value is 64,900 so it is a good deal. We are having trouble finding a lender. We live in Washington State.
Thanks.
Thanks.
we are selling our house, which was a singlewide trailer, it was added on to, bricked completly, and got a new roof over all of it, now it is a 1700 sq foot brick house, that has nothing from the original moble home other than the frame unto the house, it is on 3 acres of land and is listed at 145,000 we found buyers and got our hopes up, they found a bank that said that they would loan them the money, and 3 weeks before closing. they said that they wouldnt loan us the money because it was a single wide, can you help us?
Hi,
To nannymelva,
If your mobile home has a permanent foundation then I don't think you should face problems in getting a loan. You have mentioned that you are facing a trouble getting a lender. Did the lenders give you any reason as to why they do not want to fund you?
To Dustin,
You can contact other lenders and check if they will offer you a loan on your single wide. 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 what type of rates you can expect to get.
To nannymelva,
If your mobile home has a permanent foundation then I don't think you should face problems in getting a loan. You have mentioned that you are facing a trouble getting a lender. Did the lenders give you any reason as to why they do not want to fund you?
To Dustin,
You can contact other lenders and check if they will offer you a loan on your single wide. 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 what type of rates you can expect to get.
We have a 1997 mobile home, on three acres that we own. We have an existing mortgage on the mobile home. We are wanting to add on and close it in with a full basement underneath. We have a great credit score and my husband makes about 50k a year. Is a construction loan possible for a mobile home? If so, what loan do you think would be best.
thanks,
Stacey
thanks,
Stacey
I guess you will be able to get a construction loan if your credit score and financial situation is good.
Need $5000 loan - is it possible?
i have found a 1997 mobile home that sits on 1 acre very well maintained, asking price is 69,900.00. my ratio is close but banks will not loan on mobiles, i'm very frustrated and my car payment is causing alot of problems but cannot refinance because of auto loan value has went to nothing. i'm tired of being told no because it's a mobile, i really like this place and it's in my kids school district. right now i live with my boyfriend so i pay no rent etc.. just would like to have own place, relationship is fine with boyfriend ha ha. is there hope for me? i do have an app. in process with rural development but have not heard anything as of yet. i would need help with down payment and also would like low monthly payments. i know there has to be something out there to help me. my credit score is 660. i filed bankruptcy in 2003 discharged in 2003.
Hi,
To mwalton!
I doubt whether lenders will be ready to give you a loan of such a small amount. You can take a personal loan of $5000 or else you can try and borrow the amount from your friends and relatives.
To myself!
It is not that lenders have stopped giving mortgage for mobile home. I would suggest you to speak to few more lenders in order to get an idea about the rates and terms of mobile home loan. In order to get the mobile home loan, the mobile home should have a permanent foundation to the ground. Moreover the land should not be rented. If you want, you can also speak to the lenders of this community and get a no obligation free mortgage consultation from them. This will help you to know what type of rates you may receive.
Sussane
To mwalton!
I doubt whether lenders will be ready to give you a loan of such a small amount. You can take a personal loan of $5000 or else you can try and borrow the amount from your friends and relatives.
To myself!
It is not that lenders have stopped giving mortgage for mobile home. I would suggest you to speak to few more lenders in order to get an idea about the rates and terms of mobile home loan. In order to get the mobile home loan, the mobile home should have a permanent foundation to the ground. Moreover the land should not be rented. If you want, you can also speak to the lenders of this community and get a no obligation free mortgage consultation from them. This will help you to know what type of rates you may receive.
Sussane
Hello, I am currently looking to sell my 1999 mobile home in Shelby West park. (home is not on a foundation). I am having trouble getting my potential borrowers financed. I am needing a lender who will work with someone with a 595 score and can't seem to find one. Can you help me find a lender to work with my borrowers?
Hi,
To Leo,
As far as I know, one of criteria to get a mobile home loan is that it should be situated on a land owned by you. So I'm quite surprised that lenders won't give you the loan because you own the land. As far as rented property is concerned, there are chances that the lender's won't give you loan as you do not stay in the mobile. You can speak to the lenders of this community and get a no obligation free mortgage consultation (check out Sussane's post above) from them. This will let you know what type of rates you can expect to get.
Hi Anneliese,
As the mobile home does not have a permanent foundation, I doubt whether lenders would finance it for anyone. One of the main criteria to get a mobile home loan is that the property should have a permanent foundation. You can ask your borrowers to look out for personal property loan in order to buy the mobile home. The personal property loans are available with the retailers who sell mobile homes.
Thanks
To Leo,
As far as I know, one of criteria to get a mobile home loan is that it should be situated on a land owned by you. So I'm quite surprised that lenders won't give you the loan because you own the land. As far as rented property is concerned, there are chances that the lender's won't give you loan as you do not stay in the mobile. You can speak to the lenders of this community and get a no obligation free mortgage consultation (check out Sussane's post above) from them. This will let you know what type of rates you can expect to get.
Hi Anneliese,
As the mobile home does not have a permanent foundation, I doubt whether lenders would finance it for anyone. One of the main criteria to get a mobile home loan is that the property should have a permanent foundation. You can ask your borrowers to look out for personal property loan in order to buy the mobile home. The personal property loans are available with the retailers who sell mobile homes.
Thanks
I have a 1998 moble home 3 bedbed 2 bath on 2.40 ac with a fire place balance on home and land is 68.000 dollars with almost 7% interest pay 542.68 a month home and land is about 140.000 I am looking for lower payments and 30.000 dollars in cash to pay off bills I am retired and we make about 47.000 dollars a year thanks for your time charles jacquot
I presently reside in my mothers house who passed away last year. Because I had lived with my mother for years I had nothing in my name. My credit score is 0. I am going to be a first time buyer and I am employed. I have a reasonable size down payment and will have more to pay after the sell of my mothers house. Is there program that will work with me to purchase a home and land?