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 james,
You will have to apply for a mobile home loan from the local lenders. Depending upon your credit score and income, the lenders would let you know whether or not you would get a mortgage.
Thanks,
Jerry
You will have to apply for a mobile home loan from the local lenders. Depending upon your credit score and income, the lenders would let you know whether or not you would get a mortgage.
Thanks,
Jerry
Do you make loans if I want to sell my home that is on rented lot in a park?
Hi Kerry,
This is not a mortgage company. It is a community where people share their mortgage related queries and the lenders/experts participating here help them with their suggestions. However, this community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out whether or not you would get a loan and if you qualify for a loan what type of rates and terms you may receive.
Thanks
This is not a mortgage company. It is a community where people share their mortgage related queries and the lenders/experts participating here help them with their suggestions. However, this community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out whether or not you would get a loan and if you qualify for a loan what type of rates and terms you may receive.
Thanks
my wife & i have an older model mobile, ~1988 i think, on 30 acres. we only owe $110,000 on the whole package and have excellent credit and both have long employment histories with a combined income of over $120,000/yr. we want to refinance at lower rate if possible increase cash flow. any suggestion would be helpful. we're currently paying 5.4% but
any mortgage companies have backed away pretty quickly.
any mortgage companies have backed away pretty quickly.
me and my husband pay payments on his brothers mobile home/land. we want to get it in our name and it is not a a permanent foundation and our credit is not very good.
hi sunrise,
if you've equity in your property, then you would be able to refinance the mobile home loan. you should contact an appraiser and appraise the property in order to know the amount of equity you've. if you've 20% equity in your property, then you should contact your lender and apply for a refinance.
hi tiglady,
you can ask your husband's brother to sign a quit claim deed and transfer the property to you and your husband. once he does so, you would become the owner of the property. however, after the change in ownership, the lender will want you to refinance the loan. as you have a poor credit, it won't be possible for you to refinance the loan. in that situation, the lender can call the loan due immediately.
thanks,
jerry
if you've equity in your property, then you would be able to refinance the mobile home loan. you should contact an appraiser and appraise the property in order to know the amount of equity you've. if you've 20% equity in your property, then you should contact your lender and apply for a refinance.
hi tiglady,
you can ask your husband's brother to sign a quit claim deed and transfer the property to you and your husband. once he does so, you would become the owner of the property. however, after the change in ownership, the lender will want you to refinance the loan. as you have a poor credit, it won't be possible for you to refinance the loan. in that situation, the lender can call the loan due immediately.
thanks,
jerry
where do i need to look for a lender to loan on just raw land so i can furnish land with septic tank and mobile home..? anyone that you know of that does those kind of loans? 4 or 5 thousand.
if you have bad credit how do you get a loan for mobile homes in parks
Right now, I am paying 10.75% interest on my mobile home....I am desperately trying to find a lower interest rate, so I can pay some on principal instead of all interest. I do not have good credit.. but still try to keep going...is there anyway at all to refinance to lower interest rate..I think 10.75 is so high for anyone to have to pay. My mobile home is a 2006.
To anonymous,
You need to contact the local lenders offering land loans and apply for the same. Depending upon your credit score and income, the lenders will let you know whether or not you would get a loan. You can speak to the lenders of this community and seek a no obligation free mortgage quote (check out James's post above for the link). This will give you an idea what type of rates and terms you would qualify for.
To anonymous,
With a bad credit, it won't be possible for you to get a loan. You should improve your credit first and then look out for loans. To know some steps to improve your credit score, check out the given page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
To ssjames,
You can refinance the loan if you've equity in your property. Apart from this, you should have a score of 700-720 in order to refinance the loan. Unless you have such a score, lenders will not be ready to refinance the mortgage.
You need to contact the local lenders offering land loans and apply for the same. Depending upon your credit score and income, the lenders will let you know whether or not you would get a loan. You can speak to the lenders of this community and seek a no obligation free mortgage quote (check out James's post above for the link). This will give you an idea what type of rates and terms you would qualify for.
To anonymous,
With a bad credit, it won't be possible for you to get a loan. You should improve your credit first and then look out for loans. To know some steps to improve your credit score, check out the given page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
To ssjames,
You can refinance the loan if you've equity in your property. Apart from this, you should have a score of 700-720 in order to refinance the loan. Unless you have such a score, lenders will not be ready to refinance the mortgage.
Hi, I filed bankruptcy and it was discharged 1/14/10. I surrendered my home in the process. I would like to buy a used mobile in a park. My son would co-sign for me if necessary. Are there any loans available for some one like me? Thank you Elly Murfin
Hi Eleanor,
You won't be able to get a loan so soon after your bankruptcy has been discharged. Depending upon the type of bankruptcy you have filed, you will have to wait for 2-4 years in order to qualify for a loan.
Thanks,
Jerry
You won't be able to get a loan so soon after your bankruptcy has been discharged. Depending upon the type of bankruptcy you have filed, you will have to wait for 2-4 years in order to qualify for a loan.
Thanks,
Jerry
We are a two family income that is really tired of renting. We would love to have a 2bd 2 ba but would settle for 1 ba, preferable out of the city of portland, oregon Please fill free to call me Darryel at 503-926-1654
Your query has been replied to in the given page:
http://www.mortgagefit.com/loantalk/rent-buyhome.html#178864
Take a look at it. Hope it helps you.
http://www.mortgagefit.com/loantalk/rent-buyhome.html#178864
Take a look at it. Hope it helps you.
i am having a real hard time on finding a loan. i just checked my credit score which is @ 713+ the home is @ 69,000 here in cottage grove in a park. do you know where i could apply for one?