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:
Is there any place to get a modular Home---and finance it---If I have not very much credit at all---But I own my own land to put it on free & clear. How long does something like that take?
To Guest,
You will have to pay off the current mortgage that you have on your existing mobile home. Unless you pay off this loan, you won't be able to get a new mortgage.
To Lacy,
You can contact the dealers who sell mobile homes in order to buy the property as well as get a personal loan. As you've a bad credit, it would be difficult for you to get a conventional mortgage.
Thanks,
Jerry
You will have to pay off the current mortgage that you have on your existing mobile home. Unless you pay off this loan, you won't be able to get a new mortgage.
To Lacy,
You can contact the dealers who sell mobile homes in order to buy the property as well as get a personal loan. As you've a bad credit, it would be difficult for you to get a conventional mortgage.
Thanks,
Jerry
Hi Jessica...We are leasing a double wide mobile home that we have lived in since new. We are buying land 8 acres at the same time. We would like to get a loan to buy the home and the land together. We live in Louisiana. The home has been "tied down" and is bricked around it along with the addition of a front and back porch. Would we be able to get a favorable loan? Please advise.
Thanks
Thanks
Hi!
Welcome to forums!
To John,
As the property is not situated on a permanent foundation, you won't be able to get a conventional mobile home loan. You will have to contact the dealers giving personal property loans in order to refinance the existing loan or get an equity loan.
To cm,
If the property has a permanent foundation, then you would be able to get financing. You can contact the local lenders giving mobile home loans and apply for it. If you meet the required criteria of the lender, you'll be able to get a mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To John,
As the property is not situated on a permanent foundation, you won't be able to get a conventional mobile home loan. You will have to contact the dealers giving personal property loans in order to refinance the existing loan or get an equity loan.
To cm,
If the property has a permanent foundation, then you would be able to get financing. You can contact the local lenders giving mobile home loans and apply for it. If you meet the required criteria of the lender, you'll be able to get a mortgage.
Feel free to ask if you've further queries.
Sussane
I have recently gone through a bankruptcy. If I had a co-signer with good credit, would I be more likely to get an affordable loan for a mobile home?
I own a 2006 manufactured home. It is very nice and worth around 160k. I need to borrow about 75k for debt consolidation. I have 690 fico and own the home out right. It is not in a park but on family land. Can anyone help me with this?
Hi heather,
It won't be possible for you to get a mortgage immediately after bankruptcy though you have a co-signer. You will have to wait for around 2-4 years depending upon the chapter of bankruptcy you file and then apply for a loan.
To Dsfire,
You can apply for a mobile home loan with the local lenders. With a score of 690, you might be able to qualify for a conventional mobile home loan. However, if your home is not affixed to the land, then you will have to go for a personal property loan.
Thanks
It won't be possible for you to get a mortgage immediately after bankruptcy though you have a co-signer. You will have to wait for around 2-4 years depending upon the chapter of bankruptcy you file and then apply for a loan.
To Dsfire,
You can apply for a mobile home loan with the local lenders. With a score of 690, you might be able to qualify for a conventional mobile home loan. However, if your home is not affixed to the land, then you will have to go for a personal property loan.
Thanks
Is it possible to buy a used mobile home with 0 down if you have good credit?
Hi mpantoja!
Welcome to forums!
Now-a-days, the lenders have stopped giving zero down loans. If you want to take out a conventional mobile home loan, then the lender will want you to give at least 20% down. If you're planning to take out a FHA loan, then the lender will ask for a 3.5%-5% down.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Now-a-days, the lenders have stopped giving zero down loans. If you want to take out a conventional mobile home loan, then the lender will want you to give at least 20% down. If you're planning to take out a FHA loan, then the lender will ask for a 3.5%-5% down.
Feel free to ask if you've further queries.
Sussane
We have been in our manufactured home for 3 years and want to refinance, but it seems to be hard to find a bank to lend when you don't own the property. Is there a list of banks that do this service??
I am desperatly looking for a home to buy. I own land and i am just wanting to put my land up for a home/mobile home to buy. I have a low credit score and i am having a hard time with getting help. I have 3 children in the home and was told by my land lord that i have 30 days to move because they sold the house... please what ever you can do? i need help fast
i need help getting aprove to get a mobile home but my credit it not good so anybody what shall i do?
Hi!
Welcome to forums!
To Guest,
Unless you own the property, you won't be able to get a mortgage on it. You'll have to purchase the property from the owner and then apply for a mortgage.
To Amanda,
Unless you've a good credit score, it won't be possible for you to qualify for a loan. You should try to rent a property now and start taking steps to improve your credit score. Once your credit score improves, you'll be able to qualify for a loan. You can check out the given page in order to know some steps to improve your credit:
http://www.mortgagefit.com/credit-rating/credit-repair.html
To gagirl,
As your credit is not good, lenders will not be ready to give you a loan. You should improve your credit score first and then apply for a loan.
Sussane
Welcome to forums!
To Guest,
Unless you own the property, you won't be able to get a mortgage on it. You'll have to purchase the property from the owner and then apply for a mortgage.
To Amanda,
Unless you've a good credit score, it won't be possible for you to qualify for a loan. You should try to rent a property now and start taking steps to improve your credit score. Once your credit score improves, you'll be able to qualify for a loan. You can check out the given page in order to know some steps to improve your credit:
http://www.mortgagefit.com/credit-rating/credit-repair.html
To gagirl,
As your credit is not good, lenders will not be ready to give you a loan. You should improve your credit score first and then apply for a loan.
Sussane
we are on a small income a month we have a morage and like to add on and have a roof made next year we have a flat roof right now