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 bear,
If you've equity on your property, you can apply for a mortgage refinance. You can cash out the equity that you have in the property and add the roof to your house.
If you've equity on your property, you can apply for a mortgage refinance. You can cash out the equity that you have in the property and add the roof to your house.
i have a mobile home is been giving to me but i need funds to move it to another mobile home park i have the quote from the movers can i get any help?
i need a lone for 16,000 to buy a mobile home. who do i need to talk to?
My wife and I own a share with an assigned mobile home lot in a 55+ mobile home park. It is a co-op with a lot assigned. There is a couple interested in purchasing the lot but they went to a bank and were told that they could not get a loan for more than twice the cost of the lot. I purchased the lot for $20,000 in 2006 but am only asking $16,000 due to the economy. This would, of course, only allow for a $32,000 loan. The park requires a new double wide so this would by no means cover more than a fraction of the total cost of the lot and new mobile home. This mobile home lot is Terra Siesta Coop in Ellenton, Florida. Is there a way they could get a larger loan amount from your company?
Hi Marleny,
You can contact your local mobile home loan lenders to get a financing. If you satisfy the required criteria to get a mortgage, then you'll get a mortgage easily.
To kperteet,
You need to talk the local mobile home loan lenders in order to get a mortgage. You should have a score of 700-720 in order to qualify for a conventional mobile home loan.
To Bill,
Your query has been replied to in the given page:
http://www.mortgagefit.com/florida/mobilehome-financing.html
Take a look at it. I hope it will help you.
Thanks
You can contact your local mobile home loan lenders to get a financing. If you satisfy the required criteria to get a mortgage, then you'll get a mortgage easily.
To kperteet,
You need to talk the local mobile home loan lenders in order to get a mortgage. You should have a score of 700-720 in order to qualify for a conventional mobile home loan.
To Bill,
Your query has been replied to in the given page:
http://www.mortgagefit.com/florida/mobilehome-financing.html
Take a look at it. I hope it will help you.
Thanks
I am thinking about purchasing a used mobile home. I have poor credit, but my mom is willing to co sign a loan for me. I would have to rent a lot also. Would I be able to get this type of loan with my mom's help. She has excellent credit.
I am looking to purchase a mobile home on Lake Erie as a weekend place. This would be a secondary home. I have had no luck finding anyone who does these types of loans without at least 20% down. At this time I have 10% to put down. Any suggestions?
To heather,
As your mother has excellent credit, if she cosigns for your mortgage, you will be able to qualify for financing a mobile home.
To Brian,
You can apply for a FHA loan in order to buy a mobile home. In case of FHA loans, you will have to pay a down payment of 3.5%-5%.
As your mother has excellent credit, if she cosigns for your mortgage, you will be able to qualify for financing a mobile home.
To Brian,
You can apply for a FHA loan in order to buy a mobile home. In case of FHA loans, you will have to pay a down payment of 3.5%-5%.
we have a 2005 manufactured home that we done a lot of upgrades to and it is financed with land included. our credit is great, my husband and i both work. we have been trying to refinance our home by putting 30,000 dollars towards our mortgage of 107,000 dollars. everyone we talk to won't refinance a manufactured home or offer a higher interest rate than 6%. is there any way to refinance at a lower rate than 6%?
Hi Anita,
Do you have equity in your property? Unless you have equity in your property, you won't be able to refinance the mortgage. As far as the rates are concerned, it will depend upon the market. You can pay down points in order to get a lower interest rate on your mortgage.
Feel free to ask if you've further queries.
Sussane
Do you have equity in your property? Unless you have equity in your property, you won't be able to refinance the mortgage. As far as the rates are concerned, it will depend upon the market. You can pay down points in order to get a lower interest rate on your mortgage.
Feel free to ask if you've further queries.
Sussane
I own my home free and clear. I would like to borrow against it to consolidate debt. I am retired and have a fixed income. I am also a stained glass artist and would to use some of the money for business start up. My mobile home is a 1984 but has been gutted and redone inside and has 2 very large additions. It is approximately 1900 sq. ft. My credit score isn't that great because I have to reduce the monthly debt. Thanks.
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
Hi Gwenn,
With a bad credit, it won't be possible for you to get a mortgage. You will have to improve your score first and then look out for mortgage. You should have a score of 700-720 in order to get a mobile home loan. Check out the given page in order to know some steps to improve your score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Thanks,
Jerry
With a bad credit, it won't be possible for you to get a mortgage. You will have to improve your score first and then look out for mortgage. You should have a score of 700-720 in order to get a mobile home loan. Check out the given page in order to know some steps to improve your score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Thanks,
Jerry
what is the current interest bank rate of a manufactured home for a 15 or 20 year loan
i want to buy a mobil home for a second home however no one i have talked to will do it for less tham 20% down can you tell me if there are options anywhere for 10% down
hi Jessica my wife and i are trying to get our tax credit for our first time buyer purchase. The IRS is wanting us to appeal it because my wife had purchased a single wide about ten years ago. Is this true, the single wide is not on permanent foundation and it still has the axles. is the IRS correct and should i appeal this.