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:
Hi krazyking!
Welcome to forums!
Your query has been replied to in the given page:
http://www.mortgagefit.com/mobilehomeloan/mtg-downpayment.html
Take a look at it. Hope it helps you.
Sussane
Welcome to forums!
Your query has been replied to in the given page:
http://www.mortgagefit.com/mobilehomeloan/mtg-downpayment.html
Take a look at it. Hope it helps you.
Sussane
I have a large mobile home (on a block foundation) on 2.2 acere lot. I had the land free and clear and paid out of pocket $30K for a access road, land clearing and landscaping, a well , a septic system and a front and back deck for the double wide. I have been paying on the ARM for a year or so. I would like to get a fixed rate. My daughter and family are living in the double wide.
home is under owner's mortgage, do i try to finance with mortgage holder or borrow from another lender?
me and my wife want to buy moble home we both work make good money but our credit isnt perfect but my dad has land but i dont want to tie it up. my grandfather is willing to cosign for us he has real good credit. its hard to save money when u have four children in school and sports. what can we do
I have tried to find a company to refinance my moblie/maufactured home. I have been in it for 10 years now and trying to refinance or get equity to do some debt consolidation. It is on a brick foundation. And, it was a land/home package. what can i do
I'm looking to buy a mobile home and rent to god daughter and friends for cheaper than an apartment, what is the process?
hi shandria,
do you have equity in the property? you should contact an appraiser and check out whether or not there's equity in the property. if there is no equity, then you won't be able to get a refinance. moreover, if your property is older than 1976, you won't get a mortgage refinance.
to tonycat,
you can contact the local retailers in order to buy a mobile home. if you meet the required criteria of the lender, you will have to contact the local lenders offering conventional mobile home loan and apply for it.
do you have equity in the property? you should contact an appraiser and check out whether or not there's equity in the property. if there is no equity, then you won't be able to get a refinance. moreover, if your property is older than 1976, you won't get a mortgage refinance.
to tonycat,
you can contact the local retailers in order to buy a mobile home. if you meet the required criteria of the lender, you will have to contact the local lenders offering conventional mobile home loan and apply for it.
My wife and I are trying to decide on whether to buy a condominium or a manufactured home. We ve been told that mortgage rates for the latter are much higher. How much higher for say a price of $200 000 assuming the same credit rating (excellent)? If you cannot answer directly could you lead me to a website to answer this question (and others) Thanks a lot
i'm looking for a lender that will do a loan on a munufactured home on land, that was built in 1974, no one wants to do it because its not on a concrete slab an its built in 1974. been lookin g every where do you have any ideas? i'm approved for a home up to $120k but it must be on a concrete slab. thanks
the log cabin was not made off site- cannot be transported but is on a site with other cabins(all comply with build regs/insulation etc) where an annual rent is paid. Cabins can be let by owners 12 months of year
Can we apply for an ordinary mortgage for this ?
DS
Can we apply for an ordinary mortgage for this ?
DS
Do you know of a lender that will loan on a mobile home on a lot with no permanent foundation? the loan will be approx. $37,000 in California
Hi!
Welcome to forums!
To Amado,
I haven't heard that mortgages on manufactured homes have higher interest rates compared to condominiums. You should shop around and contact the local lenders in order to find out what type of rates and terms you'll receive for condominiums and manufactured homes.
To Ray,
Manufactured homes which are build prior to 1976 do not qualify for mobile home loans. That is the main reason why you're not getting qualified for a mortgage.
To D.S.,
If the property meets all the required criteria as per HUD, then you'll be able to get an ordinary mortgage on it. You'll have to contact the local lenders of your area and apply for the loan to find out whether or not you'll get one.
To Clara,
If the mobile home does not have a permanent foundation, then most lenders won't be ready to give you a mortgage. In that case, you can contact the retailers who sell mobile homes and apply for personal property loans.
Sussane
Welcome to forums!
To Amado,
I haven't heard that mortgages on manufactured homes have higher interest rates compared to condominiums. You should shop around and contact the local lenders in order to find out what type of rates and terms you'll receive for condominiums and manufactured homes.
To Ray,
Manufactured homes which are build prior to 1976 do not qualify for mobile home loans. That is the main reason why you're not getting qualified for a mortgage.
To D.S.,
If the property meets all the required criteria as per HUD, then you'll be able to get an ordinary mortgage on it. You'll have to contact the local lenders of your area and apply for the loan to find out whether or not you'll get one.
To Clara,
If the mobile home does not have a permanent foundation, then most lenders won't be ready to give you a mortgage. In that case, you can contact the retailers who sell mobile homes and apply for personal property loans.
Sussane
I have had late pays and my credit is poor. My home is currently in a park where they made it possible for the homeowners to by the land in the park. I would love to do that because at this time my mortgage is around 700.00 and I'm paying 925.00 for space rent. I want to refinance my home and include the purchase of the land with this refi and also pay off all of my debt. Could you help me with this? :(
They call this home a conversion, its actually a 1972 double wide that has a 2x6 frame and foundation around it . You would not know it was a mobile home by looking at it. it has been all updated as far as electrical and plumbing. the home has 1950 square feet and has a two and half car stick built garage. Would we be able to refinance this home and property ?