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 want to purchase a mobile home on a lot.not sure if is a permanent foundation
Hi Jim,
As the property was build in 1972, then it'll be difficult for you to get financing for the property. This is because, mobile homes which are build before 1976 do not qualify for financing. In that case, you may have to contact the lenders who offer personal property loans and take their help in this regard.
To juneflower,
You should check out whether or not the property has a permanent foundation. If not, then it'll be difficult for you to get a mortgage on that property.
Take care.
As the property was build in 1972, then it'll be difficult for you to get financing for the property. This is because, mobile homes which are build before 1976 do not qualify for financing. In that case, you may have to contact the lenders who offer personal property loans and take their help in this regard.
To juneflower,
You should check out whether or not the property has a permanent foundation. If not, then it'll be difficult for you to get a mortgage on that property.
Take care.
MY wife and I found a great 1st home. Problem is we don't have any money saved up. And I think we may make too much money per year to qualify for FHA or any other special loan. Do we have an option before this one gets away?
My client has a credit score of 620 and looking to buy one of my listings. It is a doublewide on 1 acre lot in Henry Co. conract price of $65,000 with
seller cedit of $3900 closing costs. Do you think you have a program for
her?
Hilda Cockram Realty
[Email address deleted as per forum rules. Thanks.]
seller cedit of $3900 closing costs. Do you think you have a program for
her?
Hilda Cockram Realty
[Email address deleted as per forum rules. Thanks.]
Hi Pritchard,
You can contact your friends or relatives to check out if they can gift you the money for down payments. You can also contact the housing authority of your state to find out if they can offer you any down payment assistance.
To Hilda,
Your client or you can seek a no obligation free mortgage quote from the lenders of this community to find out if anyone of them can help her in getting a mortgage.
Thanks,
Jerry
You can contact your friends or relatives to check out if they can gift you the money for down payments. You can also contact the housing authority of your state to find out if they can offer you any down payment assistance.
To Hilda,
Your client or you can seek a no obligation free mortgage quote from the lenders of this community to find out if anyone of them can help her in getting a mortgage.
Thanks,
Jerry
Trying to find a lender Englewood Florida and get pre-app. for a 30yr 70,000 mortgage.(mobile home with land)..co-owned both A+ credit 20% down...help
WE WANT TO BUY THIS MOBILE HOME AND NOT PUT THE LAND UP FOR COLATERAL. WE ONLY NEED ABOUT 15,000. HOW HARD WILL IT BE TO GET A LOAN FOR THIS??
To Donzie,
Did you speak to the local lenders in order to get a mortgage? You should speak to them first in order to get a loan. However, you can even speak to the lenders of this community and seek a no obligation free mortgage consultation. This will help you know whether or not you'll get a mortgage and what type of rates you may qualify for.
To TASHAL,
The sum of $15,000 is a low amount and not all lenders will be ready to give you a mortgage for such a small amount. Nevertheless, you can speak to the local lenders and check out if they can help you. Or else, you'll have to speak to the lenders offering personal property loans and check out if they can help you in this matter.
Did you speak to the local lenders in order to get a mortgage? You should speak to them first in order to get a loan. However, you can even speak to the lenders of this community and seek a no obligation free mortgage consultation. This will help you know whether or not you'll get a mortgage and what type of rates you may qualify for.
To TASHAL,
The sum of $15,000 is a low amount and not all lenders will be ready to give you a mortgage for such a small amount. Nevertheless, you can speak to the local lenders and check out if they can help you. Or else, you'll have to speak to the lenders offering personal property loans and check out if they can help you in this matter.
i would like to refinance my double wide. i own the land its on a foundation, but right now my credit is not so good. my house payment is to high and not leaving me much to pay for other things. i live in kansas and i am having a hard time finding someone to help. i have lived in my house for 4 years. where do i start??
I signed a 2 yr lease option agreement to buy a mobile home. I moved into the home April 2010. According to the terms of the contract, the purchase price is $43, 000, and as of date, I have realized a credit of $6,611 toward the purchase of the property. After personal bankruptcy I have worked hard to improve my credit score from 560 to 647. I have continued to work hard to maintain a good payment history in order improve my score the better.
My broker is urging me to apply for loan now, but am skeptical about the result, since I don't want to hurt my score with too many inquiries. My current annual income is about $38,000 to $40,000. Considering tax advantages for 2010, can I at this point be able to get a loan to close this deal? Or, should I wait a little longer? Your thoughts are appreciated.
My broker is urging me to apply for loan now, but am skeptical about the result, since I don't want to hurt my score with too many inquiries. My current annual income is about $38,000 to $40,000. Considering tax advantages for 2010, can I at this point be able to get a loan to close this deal? Or, should I wait a little longer? Your thoughts are appreciated.
I signed a 2 yr lease option agreement to buy a mobile home. I moved into the home April 2010. According to the terms of the contract, the purchase price is $43, 000, and as of date, I have realized a credit of $6,611 toward the purchase of the property. After personal bankruptcy I have worked hard to improve my credit score from 560 to 647. I have continued to work hard to maintain a good payment history in order improve my score the better.
My broker is urging me to apply for loan now, but am skeptical about the result, since I don't want to hurt my score with too many inquiries. My current annual income is about $38,000 to $40,000. Considering tax advantages for 2010, can I at this point be able to get a loan to close this deal? Or, should I wait a little longer? Your thoughts are appreciated.
My broker is urging me to apply for loan now, but am skeptical about the result, since I don't want to hurt my score with too many inquiries. My current annual income is about $38,000 to $40,000. Considering tax advantages for 2010, can I at this point be able to get a loan to close this deal? Or, should I wait a little longer? Your thoughts are appreciated.
if im looking at buying a $10000-$20000 trailer in a park can i get a loan or do i have to pay cash what are my options my score 650
MY CREDIT IS BAD CAN I BUY A HOME
How can i get a loan for a mobile home after I have it owner finance for a year? Is this considered refinacing?
I own a double wide mobile home with its own land and right now I have it as a rental property, my question can I refinance the existing loan? I only want a lower interest rate.