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:
Hi Janice,
Welcome to the forums.
Our Community has a group of lenders offering a variety of loan programs for different types of property. If you can provide us with your credit score and the state where you live in, it will be easier for us to locate if we have lenders offering services in that state.
Thanks,
Caron.
Welcome to the forums.
Our Community has a group of lenders offering a variety of loan programs for different types of property. If you can provide us with your credit score and the state where you live in, it will be easier for us to locate if we have lenders offering services in that state.
Thanks,
Caron.
i want to refinance my mobile home loan to do improvements and payoff some credit cards. i need a loan that does not require a permanent foundation. i also have financed my home and land together. the house is a 1999 and it does have synthetic brick around it. it also has a permanent porch that is fully cemented and attached to the home. i've looked all over the internet and haven't been able to find anyone to help me because my home is not on a permanent foundation. help!!!!
"I've looked all over the internet and haven't been able to find anyone to help me because my home is not on a permanent foundation. Help!!!!"Betty, it would be difficult to find financing for a mobile home not on permanent foundation.
It is not that all lenders will refuse to finance a mobile home which is not on permanent foundation but I would also agree with penrose that very few will agree to it.
"I want to refinance my mobile home loan to do improvements and payoff some credit cards. I need a loan that does not require a permanent foundation. I also have financed my home and land together. The house is a 1999 and it does have synthetic brick around it. It also has a permanent porch that is fully cemented and attached to the home. I've looked all over the internet and haven't been able to find anyone to help me because my home is not on a permanent foundation. Help!!!!"
The reason why lenders do not agree to finance is because many states will not title them as mortgageable unless the mobile home is on permanent foundation. As far as I know 16 states will not recognize them as real estate at all.
The reason why lenders do not agree to finance is because many states will not title them as mortgageable unless the mobile home is on permanent foundation. As far as I know 16 states will not recognize them as real estate at all.
Yes Betty, it's true that people like you who do not have a permanent foundation on their mobile home find it difficult to secure financing for their home.
But do not worry, it happens at times when you do not get things going the way you want.
By the way, I have been participating in this forum for quite some time and I also find some lenders taking part in the discussions and often helping people with financing. May be you can get some helpful advice or services from them.
But do not worry, it happens at times when you do not get things going the way you want.
By the way, I have been participating in this forum for quite some time and I also find some lenders taking part in the discussions and often helping people with financing. May be you can get some helpful advice or services from them.
There are not many lenders to choose from when refinancing or purchasing a single wide mobile home. There are a couple of reputable large lenders that will finance a doublewide mobile home.
With the closing of many subprime lenders over the last few weeks the pickings are even less. Go with a broker who will work for you to find the loan you need.
With the closing of many subprime lenders over the last few weeks the pickings are even less. Go with a broker who will work for you to find the loan you need.
Yeah, there has been a spike of defaults and delinquencies on subprime loans recently and regulators have simply asked lenders to be more cautious as to whom they are offering loans.
Regulators feel that lenders should be strict in evaluating borrowers for loan approvals. But I guess, not all lenders avoid following the guidelines. There are some because of whom may be the entire lending industry has to come across stricter rules and guidelines.
Regulators feel that lenders should be strict in evaluating borrowers for loan approvals. But I guess, not all lenders avoid following the guidelines. There are some because of whom may be the entire lending industry has to come across stricter rules and guidelines.
I just wanted to say "Thanks" for your explanation of how to qualify for a mobile home loan - you simplified what seemed to be a "ghost" of an answer in the past!
It's really great to feel that you have been benefited from the community.
I have purchased a 2008 manufactured home but seem to have a hard time getting approved. My credit score is 663, I have an 8 year old bankruptcy but all other credit is excellent, all RI lots of credit so latest lender said i owed too much, although my credit is excellent. dealer was surprised. Any hints as to what I can say or do, I make $60,000.00 plus a year
Welcome Roncrigger,
Your credit score isn't that good. The bankruptcy is too old to affect you. What credit do you owe and how much is it? may be the lender feels that you won't be able to carry on with payments as because you owe a lot of debts. Your income is good but I suppose your debt-to-income ratio is higher. So, if you can go for no ratio loans which do not consider the debt ratios, you can get a loan for the mobile home.
Your credit score isn't that good. The bankruptcy is too old to affect you. What credit do you owe and how much is it? may be the lender feels that you won't be able to carry on with payments as because you owe a lot of debts. Your income is good but I suppose your debt-to-income ratio is higher. So, if you can go for no ratio loans which do not consider the debt ratios, you can get a loan for the mobile home.
my son and i live in a flood zone area, the town we live in was flooded on the 19th in march here in IN, we were stranded for two days. Our home was not flooded. now we both are suffering from an arsenal of molds and pollens, causing some major allergy problems. I found a cute mobile home, 1980 on a lot for sale for a very reasonable price. I need a loan. $15000.00 dollars to be exact. my credit score is around 711.
Hi blurvrmom,
Welcome to the forum.
Your credit score is really impressive. You can go for taking a mortgage if you have sufficient source of income. Does the mobile have a permanent foundation?
You should shop a bit for lenders for best rates and terms. You can even request here for no-obligation free mortgage quote so that the community lenders may help you out.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
Your credit score is really impressive. You can go for taking a mortgage if you have sufficient source of income. Does the mobile have a permanent foundation?
You should shop a bit for lenders for best rates and terms. You can even request here for no-obligation free mortgage quote so that the community lenders may help you out.
Feel free to ask if you have any further questions.
Best of luck,
Larry