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 seller.
Welcome to the forum. I think the buyer need to have 680 or above credit score. So he should try to improve his credit first. BTW he can approve with mid 600 score but the rate will be higher.
Best of luck,
Larry
Welcome to the forum. I think the buyer need to have 680 or above credit score. So he should try to improve his credit first. BTW he can approve with mid 600 score but the rate will be higher.
Best of luck,
Larry
I own a 1979 double wide that is paid for. I need a loan of $25,000. I have spent the last two years caring for my mother who has recently passed away. We lived on savings. Now I am left with trying to reestablish my life and need to pay off some credit cards and use the rest of the money to subsidize my income while I am building my business. I have begun a new career as an insurance agent. The prospects are outstanding, I just need money to pay my bills until the business pays off. I don't want my credit rating to fall any further (640). Any hope?
Hello carolynmora .
Welcome to the forums.
Do you want the loan against the mobile home? It is tough to get loan against old mobile homes. BTW you should improve your credit score to 680 or more.
Welcome to the forums.
Do you want the loan against the mobile home? It is tough to get loan against old mobile homes. BTW you should improve your credit score to 680 or more.
Hi, my boyfriend and I are looking into buying a mobile home. That one I'm looking at right now is $40,000 on rented land. Last time I checked, my credit score was 720 and his was in the 700s as well. The problems: I have a decent amount of debt (almost 7 grand) and even though my boyfriend has a high credit score, he doesn't have that much credit to begin with. I recently began a new job a month ago (in the same field for over a year) and his employment history is job changes every year or so. How hard is it for us to get a loan? Our jobs combined make about $55,000 yearly.
Welcome Mekare.
Both of your credit score are excellent and you have good income too. So you should be able to get the loan. Why don't you apply for no-obligation free mortgage quote from the community lenders.
Both of your credit score are excellent and you have good income too. So you should be able to get the loan. Why don't you apply for no-obligation free mortgage quote from the community lenders.
loan with doublewide home and land as collertal already paid for free and clear. not on permanent foundation, but no tongue or axles attached, anchored down in concrete, and underpinned.
Hi Suzieq,
Welcome to the forum.
I don't think you'll be able to qualify for mobile home mortgages without a permanent foundation. But you may qualify for personal property loans, though they come along with high rates of interest.
Hope this helps....
May god bless you.
Samantha
Welcome to the forum.
I don't think you'll be able to qualify for mobile home mortgages without a permanent foundation. But you may qualify for personal property loans, though they come along with high rates of interest.
Hope this helps....
May god bless you.
Samantha
hi!
i currently have a mobile home and would like to refinance for a lower rate. this home does not have a permanant foundation and is on land. i filed bankruptcy 2 yrs. ago. can i get help?
thanks!
i currently have a mobile home and would like to refinance for a lower rate. this home does not have a permanant foundation and is on land. i filed bankruptcy 2 yrs. ago. can i get help?
thanks!
When did you get the discharge from bankruptcy? without a permanent foundation, it's difficult to get a mortgage. Better try for personal property loans.
OUR CREDIT IS POOR BECAUSE OF A ROGER'S MEDICAL BILLS.YOU CAN CHECK WITH WASHING MUTUAL MORTAGE, WHERE WE HAD OUR LAST HOME LOAN BEFOR MOVING FROM VA. TO WV AND WE NEVER MISSED A SINGLE HOUSE PAYMENT.
SINCERLY,
ROGER & LINDA FARMER
SINCERLY,
ROGER & LINDA FARMER
Hi FARMER,
Welcome to our community forums.
I think you're going for a mobile home loan in order to purchase a doublewide. You said your credit is poor. But let me know how poor it is. If it is somewhere between 550-580, you can qualify for FHA mortgages. However, there are a variety of loan options to choose from. And, it's good that you didn't miss a single payment.
You can go for a no-obligation free loan consultation with the lenders in our community. The lenders will analyze your situation based on which they'd offer you a loan that you can afford.
Regards,
Jessica.
Welcome to our community forums.
I think you're going for a mobile home loan in order to purchase a doublewide. You said your credit is poor. But let me know how poor it is. If it is somewhere between 550-580, you can qualify for FHA mortgages. However, there are a variety of loan options to choose from. And, it's good that you didn't miss a single payment.
You can go for a no-obligation free loan consultation with the lenders in our community. The lenders will analyze your situation based on which they'd offer you a loan that you can afford.
Regards,
Jessica.
i have a rental property that is a mobile on a acre with a well,the loan is fixed until 4/09 i need to lock in on a fixed rate, who will work with me if my credit score is above 700
Hi Bigggmike,
You have a good score indeed. :) But if it's a rental property, I don't think you'll qualify for a mobile home loan. but you can go for personal property loans offered by mobile home retailers. Though such a loan may be available at higher rate of interest as there's no collateral involved, yet it's an option worth considering.
"the loan is fixed until 4/09" Didn't get this clearly; can you please put down some more details?
may god bless you.
Samantha
You have a good score indeed. :) But if it's a rental property, I don't think you'll qualify for a mobile home loan. but you can go for personal property loans offered by mobile home retailers. Though such a loan may be available at higher rate of interest as there's no collateral involved, yet it's an option worth considering.
"the loan is fixed until 4/09" Didn't get this clearly; can you please put down some more details?
may god bless you.
Samantha
Our credit scores are 685 and 780. Annual income is 90,000+. We own our land and a single wide mobile home with permenant foundation on it right now. We would like to buy a bigger manufacture home with permanent foundation on our land. How do we go about getting loan/s for this?
Welcome Sue.
I must say you have good credit scores especially the one in the 700s. Your annual income is also good enough. How about selling the mobile home and using the proceeds to buy another? Of course you want to buy a bigger home but have home prices appreciated in your area?
Thanks.
I must say you have good credit scores especially the one in the 700s. Your annual income is also good enough. How about selling the mobile home and using the proceeds to buy another? Of course you want to buy a bigger home but have home prices appreciated in your area?
Thanks.