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:
Welcome blurvrmom,
Definatley shop around you should be able to obtain an excellent rate with such a high credit score. In addition, ask around your community you may be able to obtain some financial assistance on your new loan do to your situation.
Definatley shop around you should be able to obtain an excellent rate with such a high credit score. In addition, ask around your community you may be able to obtain some financial assistance on your new loan do to your situation.
Hi,
I'd like to know whether you wish to buy the lot as well. Or is it that the mobile home will be purchased on a rented lot? does your mobile home have a permanent foundation? You can only get a mortgage if there is such a foundation. Also, if the lot is rented, then you may qualify for personal property loans instead of a mortgage loan.
Just check out more on the types of mobile home loans from the information available here on this topic.
Regards,
Jessica.
I'd like to know whether you wish to buy the lot as well. Or is it that the mobile home will be purchased on a rented lot? does your mobile home have a permanent foundation? You can only get a mortgage if there is such a foundation. Also, if the lot is rented, then you may qualify for personal property loans instead of a mortgage loan.
Just check out more on the types of mobile home loans from the information available here on this topic.
Regards,
Jessica.
yes the lot would be purchased with the mobile home. unfortunately the foundation is not permanent. i would make it permanent as soon as i obtained a loan, if it is possible to do it that way.
Wow what a well written informative article! I learned alot great work Jessica! :D
Thanks Cliff. Just exploring and trying to make finance easier for the common people. :)
i wish to buy a double wide please call
Hi becky,
Welcome to the forum.
You have not given any phone no. So where should one call :)
BTW I think you should give a bit more information about your credit and employment history so that we can help you with better suggestions. BTW have you shopped for lenders yet?
Best of luck,
Larry
Welcome to the forum.
You have not given any phone no. So where should one call :)
BTW I think you should give a bit more information about your credit and employment history so that we can help you with better suggestions. BTW have you shopped for lenders yet?
Best of luck,
Larry
Hi Becky,
Make sure and leave your information the mortgage "professionals" on this site are the best. I've been to several sites like this one and these guys are far better than anyone else out there.
Best of Luck :D
Make sure and leave your information the mortgage "professionals" on this site are the best. I've been to several sites like this one and these guys are far better than anyone else out there.
Best of Luck :D
where can my disable husband find a loan to buy 1st home. single wide on land, he has little/no credit. any help would be appreciated.
Hi lynn,
Welcome to the forum.
Can you inform us your husband's credit and employment history? Have you yet shopped for lenders? If not then you need to do so. To know whether you can get approve for a mobile home loan or not you can seek No-obligation free consultation from the community lenders.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
Can you inform us your husband's credit and employment history? Have you yet shopped for lenders? If not then you need to do so. To know whether you can get approve for a mobile home loan or not you can seek No-obligation free consultation from the community lenders.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Great advice! :D
I am finding out that there really aren't industry standards for permamnent mobile home foundations. FHA and VA loans for mobiles require this, but the standards are not there to determine the least expensive, acceptable methods for permatizing a mobile home. Mine is tied down with no axles under the home. That is one definition I have found out. So where can I get help to do this so that I can satisfy FHA, HUD, VA, and banks?
Welcome Plefe.
FHA requires a permanent foundation on your mobile home to get approve for a mortgage. So if you want to make the permanent foundation then contact the professional who is expert in this type of work. Anchors should be attached to solid foundation.
FHA requires a permanent foundation on your mobile home to get approve for a mortgage. So if you want to make the permanent foundation then contact the professional who is expert in this type of work. Anchors should be attached to solid foundation.
Good point Niicss! :D
I would like to get a mobile home loan. I wanted it to be the price of the (min) of $10.000 to (max) of $20.000 use mobile home. can you please help me with the loan.