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:
Does anyone know who will lend on a mobile home built in 1974 with a basement?
Hi Daniel,
Did the lenders give you any reason as to why they won't give you a mortgage? If not, then you should contact the lenders and ask them about it. In case, the mobile home was build before 1976, you'll not qualify for a loan.
Hi Jas,
Lenders won't lend you money for a mobile home which was build prior to 1976. You can contact the retailers who sell mobile homes and check out if you can qualify for a personal property loan.
Take care.
Did the lenders give you any reason as to why they won't give you a mortgage? If not, then you should contact the lenders and ask them about it. In case, the mobile home was build before 1976, you'll not qualify for a loan.
Hi Jas,
Lenders won't lend you money for a mobile home which was build prior to 1976. You can contact the retailers who sell mobile homes and check out if you can qualify for a personal property loan.
Take care.
I need to borrow some money for some much needed repairs to my mobile home I own my trailer and I have the title can I get a loan
Hi bama,
If the mobile home is free and clear, then you will be able to use it as collateral to get a mortgage. You can use the loan proceeds in order to improve the property. However, you should meet the credit requirements and have a stable financial situation in order to qualify for a loan.
If the mobile home is free and clear, then you will be able to use it as collateral to get a mortgage. You can use the loan proceeds in order to improve the property. However, you should meet the credit requirements and have a stable financial situation in order to qualify for a loan.
transferring from Omaha to Wichita with the same company and cant sell the a home in Omaha without taking 25k to closing. so we want to rent it out but cant find anyone to accept a brand new rental agreement so we can buy a mfg home and put it in a park in Wichita. Can you help?
Hi
I wish to purchase a mobile home in a park w/ controlled space rent , I have credit score around 750, but no income as I am on SDI for a work injury. Will anyone lend to someone in my situation. I am a 1st time buyer, and have some credit card debt. But always pay over the amt on time. what scenario would work if any?
I wish to purchase a mobile home in a park w/ controlled space rent , I have credit score around 750, but no income as I am on SDI for a work injury. Will anyone lend to someone in my situation. I am a 1st time buyer, and have some credit card debt. But always pay over the amt on time. what scenario would work if any?
To Brianl,
You will have to research about the rent rates in your area and place an ad that you want to rent out your property. You can e-mail all your friends and they might help you in finding a tenant. You can also advertise online or place a "To Rent" sign on your lawn or in the widow mentioning your contact details. You can even place an ad in the local newspapers regarding the same. These tips will definitely help you in getting a tenant for your property.
To booboo,
You should contact the local mobile home loan lenders in order to get a mortgage to buy a mobile home. With the type of credit score you have, I'm sure you'll be able to qualify for a loan.
You will have to research about the rent rates in your area and place an ad that you want to rent out your property. You can e-mail all your friends and they might help you in finding a tenant. You can also advertise online or place a "To Rent" sign on your lawn or in the widow mentioning your contact details. You can even place an ad in the local newspapers regarding the same. These tips will definitely help you in getting a tenant for your property.
To booboo,
You should contact the local mobile home loan lenders in order to get a mortgage to buy a mobile home. With the type of credit score you have, I'm sure you'll be able to qualify for a loan.
i am renting a mobile home on priviet land my landlord wants to sell the land and the home but i want to buy the land and purches a newer home,so i dont want to tie up the home on the same loan so i can sell the home later how do i do this
What if I have the land, paid for, and want to use it as colataral to get a used or repo mobile home?
Hi Miriam,
You can contact the seller and let him know that you want to buy the land and not the mobile home. You will have to apply for a land loan in order to buy the property. The seller will have to sign a deed transferring the land in your name. Both of you should contact an attorney in order to get the property transferred in your name.
To buiskit,
You can take out a land loan using the land as the collateral and buy a mobile home. You should contact the local land loan lenders for the same.
Thanks
You can contact the seller and let him know that you want to buy the land and not the mobile home. You will have to apply for a land loan in order to buy the property. The seller will have to sign a deed transferring the land in your name. Both of you should contact an attorney in order to get the property transferred in your name.
To buiskit,
You can take out a land loan using the land as the collateral and buy a mobile home. You should contact the local land loan lenders for the same.
Thanks
i have found a mobile home on 2 acres of land for 45000 but i dont know where to look for a loan cause my credit is bad. I have a co signer but the one place i talked to said even with a co signer my score had to be 680 or better and its not. I was wondering if you might know who might could do this for me
We are trying to purchase 3.5 acres with a mobile home on it. Our lender that had previously preapproved us for a home with 4-5,000 down is now saying that we need 18% ($17,000) down because it is a mobile home. What are our options. We have excellent credit but do not have $17,000 for the down.
I have 5+ acres and a 4 year old double wide (28' X 80') on a permanent foundation. It has a concrete built in front porch. The roof of the porch is built into the roof of the home. So it's not going anywhere. The land and home are converted to real estate. I have good credit but no one in town seems to loan money on a mobile home. Any sugestions
We have a mortgage on our 1977 that we bought 3 years age. We would like to tear it down and put a modular in it's place and the city says that we can do that. What do we do about financing since we still have a mortgage on the current residence?