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 Guest,
Though it's your rental property, you will be able to refinance it provided you have a good credit score and stable income. If you want to go for a conventional refinance, then you should have a credit score of 700-720 whereas if you want to go for a FHA loan, then you should have a credit score of 580 or above.
Thanks,
Jerry
Though it's your rental property, you will be able to refinance it provided you have a good credit score and stable income. If you want to go for a conventional refinance, then you should have a credit score of 700-720 whereas if you want to go for a FHA loan, then you should have a credit score of 580 or above.
Thanks,
Jerry
I have a 1978 doublewide on 3.5 acres of land. my interest rate currently is 7.75, and we have owned this for 15 years. credit scores around 670 or better. looking to refi with some cash out around $55 to 60K. owe $48 on loan. Appraisel came in at $260000. Who would be best place to contact and what are current rates fo mh refi.
i need a rv to livein how can i do this
I was wandering what type of loan that I could possible get for a mobile home? And where could I go to get it? And how long does one need to keep a job for a loan as well? We are looking for a loan to purchase a mobile home.
Hi Guest,
You should contact the local mobile home loan lenders in order to get a conventional mortgage to buy a home. You will have to show 2 years of employment history in order to get a mortgage. Apart from this, you should have a credit score of 700-720 in order to get a conventional mortgage.
Thanks,
Jerry
You should contact the local mobile home loan lenders in order to get a conventional mortgage to buy a home. You will have to show 2 years of employment history in order to get a mortgage. Apart from this, you should have a credit score of 700-720 in order to get a conventional mortgage.
Thanks,
Jerry
My husband and I are renting an apartment right now and we were interested in buying a manufacturd home but we don't have good credit is there anything you guys. Could do for us?
need to lease lot for mobiol home in severville tn 37862 or near bu call me on phone 8657741425 jim kennedy
Hi Kendra,
Unless you have a good credit, you won't be able to get a mortgage to buy a property. You should take some steps to improve your credit. Check out the given page in order to know what steps you can take to improve your score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
To mobiol,
Your query has been replied to in the given page:
http://www.mortgagefit.com/propertytransfer/rentlot-mobilehome.html
Take a look at it. Hope it helps you.
Thanks
Unless you have a good credit, you won't be able to get a mortgage to buy a property. You should take some steps to improve your credit. Check out the given page in order to know what steps you can take to improve your score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
To mobiol,
Your query has been replied to in the given page:
http://www.mortgagefit.com/propertytransfer/rentlot-mobilehome.html
Take a look at it. Hope it helps you.
Thanks
I am an owner of land and a mobile home that is currently rented, the renters are interested in purchasing both the land and home. Do you have any suggestions for financing?
Hi di,
You will be able to refinance the property only if you aren't delinquent on your mortgage payments and have equity in your property. As you're facing foreclosure, I don't think you're current on your mortgage payments. In that case, you won't be able to refinance your home.
To strickhouse,
If you want to sell off the home, then you can sign a quitclaim deed in the favor of the renters and they can assume or refinance the mortgage in their names.
Thanks
You will be able to refinance the property only if you aren't delinquent on your mortgage payments and have equity in your property. As you're facing foreclosure, I don't think you're current on your mortgage payments. In that case, you won't be able to refinance your home.
To strickhouse,
If you want to sell off the home, then you can sign a quitclaim deed in the favor of the renters and they can assume or refinance the mortgage in their names.
Thanks
no mortgage balance--live in a manufacuturedhome community--house is not on a foundation--only on the wheels and pillars. do these qualify for loans?
Our double-wide manufactured home was built in 1979 and is located in a sub-division, not a mobile home park. Our home sits not only on pillars but is below ground level instead of on top where skirting is required. We've lived here for five years and currently owe just a little more than $74,000 on our mortgage. We would like to take advantage of the lowering interest rates in our area (northern Arizona) and refinance our current mortgage. We would like to lower our monthly mortgage payments to better fit our budget. My husband and I both work full-time and have good credit standing with our credit scores over 700. Is there a good chance that we would be able to qualify under these circumstances? Oh, this is our second time buying a home.
I applied for loan from first credit corp but was denied. I only need $12,000
Any ideas?
Any ideas?