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:
I am single mom living on a very low income looking to upgrade my 1985 single wide to a 2007 single wide. I own 6.68 acres with a clear deed in my name only that my current 1985 single wide is located, but it is in very poor condition & unhealthy living environment with recent findings of black mold. I only have a credit score of about 586 due to a bad divorce & currently behind in several bills which I would like to consolidate with the loan. I could use my land as collateral & sell my current 1985 single wide to have money for a down payment.
Please any advice/help you could offer would be great; I have currently been turned down by my local credit union but am in desperate need of better housing for me & my teenage son. I would love to be able to pay off old debits & have a fresh start with just one payment.
Please any advice/help you could offer would be great; I have currently been turned down by my local credit union but am in desperate need of better housing for me & my teenage son. I would love to be able to pay off old debits & have a fresh start with just one payment.
mom and I share a home, a doublewide 2003, no mortgage owed, was paid in full when purchased. it is parked in a private park and we pay lot rent every month. mom is on fixed income and i just got laid off and may be on social secuity disability soon. how do we qualify to refi?? :roll:
hi kastorbug,
you can contact the local lenders in order to get a loan on a manufactured home. if the local lenders are not ready to give you a mortgage, then you need to contact the retailers who sell mobile homes and check out if they can help you with a personal property loan. however, such loans are available at a higher interest rate.
to pk,
it will be better if you could list the property in the market and sell off your mobile home. once you sell off the property, you can use your land as collateral in order to buy a new mobile home and consolidate your other debts.
to guest,
do you have equity in your property? if yes, then you've chances of qualifying for a social security disability income. your social security disability income will be taken to consideration by the lender when he refinances the mortgage. you should contact your lender and apply for a refinance.
you can contact the local lenders in order to get a loan on a manufactured home. if the local lenders are not ready to give you a mortgage, then you need to contact the retailers who sell mobile homes and check out if they can help you with a personal property loan. however, such loans are available at a higher interest rate.
to pk,
it will be better if you could list the property in the market and sell off your mobile home. once you sell off the property, you can use your land as collateral in order to buy a new mobile home and consolidate your other debts.
to guest,
do you have equity in your property? if yes, then you've chances of qualifying for a social security disability income. your social security disability income will be taken to consideration by the lender when he refinances the mortgage. you should contact your lender and apply for a refinance.
need to borrow about 60.000 want to buy home in flordia a manufactured home have 20.000 to put down but credit score is low 585 will I have trouble
We are self-employed with a mtg payment from our home. We would like to purchase a mobile home and place it in a mobile park. Credit scores are good. Will we be able to get a loan even when we still owe on our home.?
To seabee,
You can apply for a FHA loan in order to buy a manufactured home with a credit score of 585. However, you will get a FHA loan with such a low credit score provided you don't have a large number of negative items on your credit report.
To violaveramsw,
As you already have a mortgage on one of your properties, it will be quite difficult for you to qualify for another mortgage for a new property. Lenders won't be ready to give you a loan in such a situation.
You can apply for a FHA loan in order to buy a manufactured home with a credit score of 585. However, you will get a FHA loan with such a low credit score provided you don't have a large number of negative items on your credit report.
To violaveramsw,
As you already have a mortgage on one of your properties, it will be quite difficult for you to qualify for another mortgage for a new property. Lenders won't be ready to give you a loan in such a situation.
Hi charlesbyrd,
You can contact your present lender in order to get a mortgage refinance. However, it is not mandatory for you to go with the same lender. You can contact other local lenders as well. However, you should have equity in your property in order to get a refinance. Unless you've equity in your property, the lenders will not be ready to give you a refinance.
Thanks,
Jerry
You can contact your present lender in order to get a mortgage refinance. However, it is not mandatory for you to go with the same lender. You can contact other local lenders as well. However, you should have equity in your property in order to get a refinance. Unless you've equity in your property, the lenders will not be ready to give you a refinance.
Thanks,
Jerry
We are trying to refiance our manufactured home that is deeded with our property but it seems that I am having trouble with getting this loan because they say of government regulations, why
how do you qualify for the state programs
we own our home and i need to acquire money to buy out my husband, because of a divorce. our house is paid for and situated in a modular/ mobile home park. is there any way to find some lender to help me in this situation
Hi icreate,
As the manufactured home is deeded with your property, you'll have to refinance the whole property and the mortgage on it. You cannot simply refinance and get a separate mortgage on the manufactured home.
To kyria,
Your query is not clear to me. What state programs do you want to qualify for?
To mh,
You can contact the local lenders who offer mobile home loans. As your property is free and clear, you'll be able to get a mortgage on it if you have the required credit score and income.
Take care.
As the manufactured home is deeded with your property, you'll have to refinance the whole property and the mortgage on it. You cannot simply refinance and get a separate mortgage on the manufactured home.
To kyria,
Your query is not clear to me. What state programs do you want to qualify for?
To mh,
You can contact the local lenders who offer mobile home loans. As your property is free and clear, you'll be able to get a mortgage on it if you have the required credit score and income.
Take care.
My mother passed away and there are 6 siblings to divide inheritance. However 2 of us would like to buy out the remaining siblings and keep mobile home in family for guest house. Since one of us has been quit claimed to from my mother...we have been told that it will be a refinance. But neither of of 2 siblings will be living in home so what type of loan do we need and who would handle this type of loan? The land is free and clear and we need $40,000 cash out to pay off the others!
i have a manufactured home permanently tied to the land- 5 acres-, down payment requirement from lenders are twice that of site built. can i owner finance the down payment, second mortgage so that potiential buyer can get financing? how?
I am attempting to buy a home, it was a sinlge wide placed on a block foundation, axle and wheels removed. I am unsure of the year it was built but found a paper on the electrical panel that says it was affixed in 1974. I talked to several different lenders, one of which has told me I need to have 20% down. I do not have that right now. Is there any other option. I have called every bank around and they all said it doesn't matter if it is affixed to the land they still won't consider a loan. HELP!?