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 dianelane!
Welcome to forums!
Though you have the down payment ready with you, you won't be able to get a mortgage with a credit score of 520. You should have a credit score of 580 at least in order to apply for a FHA loan. If you wish to take out a conventional loan, then you should have a score of 700-720.
You can check out the given page to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Though you have the down payment ready with you, you won't be able to get a mortgage with a credit score of 520. You should have a credit score of 580 at least in order to apply for a FHA loan. If you wish to take out a conventional loan, then you should have a score of 700-720.
You can check out the given page to improve your credit score:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Feel free to ask if you've further queries.
Sussane
We received our discharge notice from bankruptcy (Ch 7) on Nov. 2 2010. A lot has changed in the lending markets in the past two years. We are wondering if there are lenders willing to provide a 15 or 30 year mortgage to purchase a used double wide mobile home. We live in Oklahoma and want to move back to Fl;orida.
We are both retired, living on several small pensions, including SS.Our D/I ratio is 29. We kept our home and my wife's car out of the BKR. We also still have an active JC Penney card, with a zero balance.
We have never missed a payment nor have we been late on the mortgage or the car payment. We were able to take advantage of one of the Obama 'reduce your mortgage payment' programs. BOA reluctantly agreed to reduce our mortgage payment from $1225 to $1005 p/mo. That's the good news.
The bad news is, every month there's a note placed in our credit report that says we are late with our payment, and are running many months behind. THIS IS SIMPLY NOT TRUE. We asked BOA what's going on. They said it's a technical matter caused by the government intervention, and it will eventually be corrected. There is also a note, in very small print, that says we are involved in a government program, and the info may not be accurate. Small consolation!
So our story is not all bad news. Question: do we get any credit for staying current on our mortgage payments, and paying on time. How about the car payment, current and on time? I had a 2006 Ranger pickup, that I made payments on for 3 years, never late, never missed a payment. When we decided we had to go the BKR route, I voluntarily turned the truck in to Wells Fargo and included it in the BKR. Any credit for being current, or is it all negative because I gave the truck back?
Bottom line, we still have active credit that we're making on time payments and have a track record of about 4 years.
All things considered, can we buy a used mobile home in Florida next March or April, 2011, and get a 15 or 30 year fixed mortgage? We can make a 15% down payment. We expect the interest rate to be higher than the going rate, just so its not outrageously higher.
Appreciate any info you can provide. Thanks.
George T
We are both retired, living on several small pensions, including SS.Our D/I ratio is 29. We kept our home and my wife's car out of the BKR. We also still have an active JC Penney card, with a zero balance.
We have never missed a payment nor have we been late on the mortgage or the car payment. We were able to take advantage of one of the Obama 'reduce your mortgage payment' programs. BOA reluctantly agreed to reduce our mortgage payment from $1225 to $1005 p/mo. That's the good news.
The bad news is, every month there's a note placed in our credit report that says we are late with our payment, and are running many months behind. THIS IS SIMPLY NOT TRUE. We asked BOA what's going on. They said it's a technical matter caused by the government intervention, and it will eventually be corrected. There is also a note, in very small print, that says we are involved in a government program, and the info may not be accurate. Small consolation!
So our story is not all bad news. Question: do we get any credit for staying current on our mortgage payments, and paying on time. How about the car payment, current and on time? I had a 2006 Ranger pickup, that I made payments on for 3 years, never late, never missed a payment. When we decided we had to go the BKR route, I voluntarily turned the truck in to Wells Fargo and included it in the BKR. Any credit for being current, or is it all negative because I gave the truck back?
Bottom line, we still have active credit that we're making on time payments and have a track record of about 4 years.
All things considered, can we buy a used mobile home in Florida next March or April, 2011, and get a 15 or 30 year fixed mortgage? We can make a 15% down payment. We expect the interest rate to be higher than the going rate, just so its not outrageously higher.
Appreciate any info you can provide. Thanks.
George T
Hi George,
As you got your bankruptcy discharge on Nov. 2, 2010, you won't be able to get a mortgage now. You will have to wait for 2 years to qualify for a FHA loan and 4 years to get a conventional loan.
Thanks
As you got your bankruptcy discharge on Nov. 2, 2010, you won't be able to get a mortgage now. You will have to wait for 2 years to qualify for a FHA loan and 4 years to get a conventional loan.
Thanks
i own my 1984 mobile home it is a cert mobile home park my credit is not the besti need a loan for repairs .who can help i can the work myself
My husband and I purchased a mobile home that had been added onto it does not have a foundation but it is on 2 lots. We have tried banks and they will not lend on this because it is a mobile with out a foundation. We then decided to put a foundation under it and now people are telling us if we do that it will fall apart because of the way it was added onto. We just need some help financially so we can either tear the trailer part completly out and make it into a house or get a loan to put a foundation under it. Is there anyone that can help us DO SOMETHING!!!!
Hi Thomas,
With a bad credit, you won't be able to qualify for a mortgage. You will have to improve your credit first and then apply for a mortgage.
To Mick,
You can contact the local lenders offering personal property loans and check out if they can help you in this matter. However, it should be kept in mind that personal property loans are available at a higher interest rate.
With a bad credit, you won't be able to qualify for a mortgage. You will have to improve your credit first and then apply for a mortgage.
To Mick,
You can contact the local lenders offering personal property loans and check out if they can help you in this matter. However, it should be kept in mind that personal property loans are available at a higher interest rate.
hello, i need a 25000 loan to consolidate bills, i own outright a 1987 dwide
mobilehome in excellent condition on 2.97 acres also owned outright, my credit score right now, a little low, between 650 -700, can u help
mobilehome in excellent condition on 2.97 acres also owned outright, my credit score right now, a little low, between 650 -700, can u help
I purchased a mobile home for $2000 i spent around $14,000 fixing it up with improvements how much could i borrow on it?
Hi razor,
With a credit score of 650-700, you can easily qualify for FHA loan provided you do not have much negative items in your credit report. Also, there may be some conventional lenders who can offer you a conventional loan at a credit score of 680-700. You need to speak to the local lenders and check out if you can get any help from them.
This is a mortgage community where people discuss their mortgage related queries. This is not a lending organization. However, there are lenders who participate in the forum discussions here. You can seek a no obligation free mortgage quote from them and check out what type of rates and terms you'll receive.
To ragtimegirl,
You will have to check out the present value of the property by appraising it. You will be able to get a loan depending upon the value of the property.
Thanks
With a credit score of 650-700, you can easily qualify for FHA loan provided you do not have much negative items in your credit report. Also, there may be some conventional lenders who can offer you a conventional loan at a credit score of 680-700. You need to speak to the local lenders and check out if you can get any help from them.
This is a mortgage community where people discuss their mortgage related queries. This is not a lending organization. However, there are lenders who participate in the forum discussions here. You can seek a no obligation free mortgage quote from them and check out what type of rates and terms you'll receive.
To ragtimegirl,
You will have to check out the present value of the property by appraising it. You will be able to get a loan depending upon the value of the property.
Thanks
I have a mobile home park undercontract need private financing, how can you help me. The sales price 12,000
Hi Mike,
You will have to contact the local lenders in order to get the financing. This is not a lending organizing but a community where people discuss their mortgage related queries.
You will have to contact the local lenders in order to get the financing. This is not a lending organizing but a community where people discuss their mortgage related queries.
moblehome and land
call me
is my credit is something that can be approved I been at my current job for 4 years
i dont have credit, but my wife has a credit score a little 620. we or should i say she has been working for 5 yrs. and makes about 1,100.00 a month we where prequlified for 100,00.00 on a home loan. the thing is we fell in love with a mobile home with property. i make about 700.00 a month. on the other side we already have a small peice of property paid in full. Do you think we have any chance at all. by the way we're looking for a 90,000.00 loan