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:
We are in the market to get a manufactured home loan. We currently live in a home that we owe 88000 on. We plan on selling it for no less thatn 125000. We have found a manufactured home on 5 acres that is priced at around 90000. When we sell our home, we would like to have around 10000 to make improvements on the manufactured home we plan on purchasing. What kind of loan programs are available?
What kind of credit score would we need to get a loan?
What kind of credit score would we need to get a loan?
Hi tim,
You and your wife will be able to get the first time homebuyer's tax credit only if both of you haven't owned any property for the last 3 years. If your wife is still the owner of the single wide property, then she won't be able to qualify for a first time homebuyer's tax credit.
To Catherine,
You can look out for home improvement loans in order to improve your manufactured home. However, if you're short selling the property, then you won't be able to get a mortgage within the next 3-4 years. In order to get a conventional mortgage, you should have a credit score of 700-720.
Take care
You and your wife will be able to get the first time homebuyer's tax credit only if both of you haven't owned any property for the last 3 years. If your wife is still the owner of the single wide property, then she won't be able to qualify for a first time homebuyer's tax credit.
To Catherine,
You can look out for home improvement loans in order to improve your manufactured home. However, if you're short selling the property, then you won't be able to get a mortgage within the next 3-4 years. In order to get a conventional mortgage, you should have a credit score of 700-720.
Take care
hi we are looking for loan where we can purchase a mobile home and land. my husband has no income or credit and i have good great but limited income and very little for a down payment. is there a loan out there to help us.
hi i need a loan four a mobil home
To missy,
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/loantalk/mobilehome-purchase.html#183203
Take a look at it. Hope it helps you.
To anonymous,
You need to contact the local mobile home loan lenders in order to get a mortgage. You will have to pay a down payment of at least 20% in order to get a loan. Apart from this, you should have a score of 700-720 to qualify for a conventional loan.
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/loantalk/mobilehome-purchase.html#183203
Take a look at it. Hope it helps you.
To anonymous,
You need to contact the local mobile home loan lenders in order to get a mortgage. You will have to pay a down payment of at least 20% in order to get a loan. Apart from this, you should have a score of 700-720 to qualify for a conventional loan.
Is there a list of approved lenders for VA or FHA Loans for Mobile Homes and Land. If yes where can a find the list?
What would I need to qualify to rent a lot in a55 and older mobile home community, if I at cash for the home?
We have good stable income thru my husbands job of 25 years and he makes over 70K - our credit went down when I lost my six figure job due to the economy and I also have 24 years on the job and we owned a few homes in the past making over 12K per month in house payments for 10 years and then when I lost my income we decided it might be best to downsize to a new manufactured home in a park. Our credit is shot but was in the high 600's and mid 700's for many many years with no credit issues at all since we were loaned credit - we had a credit line of 20K with Am Ex monthly and we paid that off. We are settling our debt and the home will come first and we only have one car payment. Can we get a no FICO loan? since our credit is so low? How about a VA loan - are they more forgiving if you are moving down to a more affordable payment?
To Guest,
I don't think you will get a list of VA or FHA lenders offering mobile home loans. You need to contact the local lenders and apply for VA or FHA loans. They will let you know whether or not they can offer you the same.
To lulutwo,
Unless you have employment, you won't be able to get a property on rent.
To Nester,
You won't be able to get a no-FICO loan. If your credit is not good, the lenders won't be ready to give you a home loan. You'll have to improve your credit score and then look out for a mortgage.
Thanks,
Jerry
I don't think you will get a list of VA or FHA lenders offering mobile home loans. You need to contact the local lenders and apply for VA or FHA loans. They will let you know whether or not they can offer you the same.
To lulutwo,
Unless you have employment, you won't be able to get a property on rent.
To Nester,
You won't be able to get a no-FICO loan. If your credit is not good, the lenders won't be ready to give you a home loan. You'll have to improve your credit score and then look out for a mortgage.
Thanks,
Jerry
we are looking to obtain a loan to pay off a few bills and do some home improvements on our moblile home and put up a car port. We own our 1986 mobile home which is in very good condition and the 4 lots of land it is on and we owe nothing on it. It is assessed on the tax rool for 36,000 we would like to borrow 20,000. Our credit is not very good from past stupid mistakes and some medical bills . Our mobile home is in Florida what are your suggestions.
HI JESSICA I AM WANT TO GET A LOAN ON MY 2 ACRERS AND MANUFACTURED HOME THAT I OWN FREE AND CLEAR DO YOU FOLKS DO THAT
as i am self employed and have pretty poor credit due to a divorce where to i look to get a NINA loan????
After the crisis in the real estate market, the lenders have stopped giving NINA loans. Unless you've sufficient income and financial stability, the lenders will not give you a mortgage.
I have a permanent foundation mobile home that is worth 85,000 and is totally paid off. I need a small equity loan on it. I would use the house and propewrty as collateral, but I can't find anyone who will do personal equity loans on a paid off mobile home do u know of anyone...or anything that could help me in the right direction? I look forward to your response and appreciate your time. Danielle