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,my mom is retired from the u.s.p.s and recieves monthly retirement of about $2,100 a month.she's 69 and has ok credit,she has a 2000 model mobile home she's been paying on for 9 years with 6 years to finish.she wants to do some home upgrades.HOW CAN SHE GET ABOUT $3,500 FOR THIS
I AM saleing a moblehome on 1.206 ac corner lot have alot of pepole intrested but they cant get fin. home sets on concrete runners axels and tungs out from it tide down block skirting around front and sides back hard board siding home is 2007 centrl heat/air is it posseble for some one to get fin.onthis prop asking 84.000 for everything
Hi!
Welcome to forums!
To jane,
Your mother can apply for a home improvement loan in order to make the required upgrades. If she meets the required criteria of the lender, she will be able to get the mortgage.
To dgreenwood,
Did the lenders give any particular reason for not giving the loan? Your buyers can speak to the lenders offering personal property loans and check out if they can get one.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To jane,
Your mother can apply for a home improvement loan in order to make the required upgrades. If she meets the required criteria of the lender, she will be able to get the mortgage.
To dgreenwood,
Did the lenders give any particular reason for not giving the loan? Your buyers can speak to the lenders offering personal property loans and check out if they can get one.
Feel free to ask if you've further queries.
Sussane
My mom has a house that was a mobilehome. it was completely redond inside and out has additions and a permanent foundation. but the trailer frame is still under the house, it is not attached but still exists. The house and land were completely paid off until she got a divorce and had to buy my dad out of the house. she got a loan from her bank but she would like to refinance to get a mortgage. everyone she has talked to has told her they will not do a mortgage because it is still a mobile home. what should she do?
is there anywhere that will let you finance a mobile home that is not on permanent foundation. We were only able to find one and they only would give us 3 months to put one up after the purchase.
To snharris,
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about46650.html#191729
Take a look at it. Hope it helps you.
To tifne,
You can contact the local mobile home loan lenders and take their opinion in this matter. Most lenders will prefer permanent foundation for the mobile home.
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about46650.html#191729
Take a look at it. Hope it helps you.
To tifne,
You can contact the local mobile home loan lenders and take their opinion in this matter. Most lenders will prefer permanent foundation for the mobile home.
I HAVE HAD MY MOBILE HOME FOR 11 YRS & I THINK IT IS A 1990 SCHULTZ BUT I OWE LESS THAT $20,000 ON IT. DO I QUALIFY TO REFINANCE?
Hi Krau!
Welcome to forums!
As you have equity in your property, you'll be able to qualify for a mortgage refinance. You should contact the local lenders who offer mobile home loans and apply for a mortgage. You can even contact your present lender and check out if he can help you in getting a mortgage refinance.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you have equity in your property, you'll be able to qualify for a mortgage refinance. You should contact the local lenders who offer mobile home loans and apply for a mortgage. You can even contact your present lender and check out if he can help you in getting a mortgage refinance.
Feel free to ask if you've further queries.
Sussane
I am in need of a mortgage on a mobile home that is on a permanent foundation. It sits on a fenced in lot & has a 2 car detached garage. Can someone call me and give me information? Thank you so much.
[Contact details deleted as per forum rules. Thanks.]
[Contact details deleted as per forum rules. Thanks.]
Hi jessica...
my husband and i are wanting to consider buying a second manufactured home! We got this one, and have 9 years left on the payoff...I don;t know what my score is, but we have paid the mortgage up for the year, and make around 60k per year. We have land free and clear 1 acre that we are hoping to use plus 8 percent down. we just need more space for the new baby! oh, and the one that we are currently residing in, we want to put this home up for rent! please suggest anything....anything can help us
my husband and i are wanting to consider buying a second manufactured home! We got this one, and have 9 years left on the payoff...I don;t know what my score is, but we have paid the mortgage up for the year, and make around 60k per year. We have land free and clear 1 acre that we are hoping to use plus 8 percent down. we just need more space for the new baby! oh, and the one that we are currently residing in, we want to put this home up for rent! please suggest anything....anything can help us
Hi Rosie,
If you already have a mortgage on the property, then there are less chances that you will qualify for another mortgage to buy a new manufactured home. You can contact the retailers who sell mobile homes and check out if they can offer you a personal property loan in this case.
If you already have a mortgage on the property, then there are less chances that you will qualify for another mortgage to buy a new manufactured home. You can contact the retailers who sell mobile homes and check out if they can offer you a personal property loan in this case.
Hello, I own a 1976 Mini home. Placed on established park in central Fredericton N.B., Completed renovated from top to bottom, end to end, including new deck. My price is $45,000.
Can a purchaser obtain a mortgage on my home?
What kind of mortgage, how much would they have to put down?
Thanks
Can a purchaser obtain a mortgage on my home?
What kind of mortgage, how much would they have to put down?
Thanks
I know my credit is not that great but I have been fixing it its now at 520 its low im looking at 125,000.00 mobile home in a park, the lot rent is 400.00 a month I do have a great deal of a down payment