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 Mitchell,
You should contact the local lenders and apply for a mortgage on the mobile home and the land. If you have the required credit score and income, then you will be able to get a mortgage.
To Gina,
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/credit/500score-getloan.html#193417
Take a look at it. Hope it helps you.
Thanks
You should contact the local lenders and apply for a mortgage on the mobile home and the land. If you have the required credit score and income, then you will be able to get a mortgage.
To Gina,
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/credit/500score-getloan.html#193417
Take a look at it. Hope it helps you.
Thanks
I WOULD LIKE TO REFINANICE MY HOME AND 14 ACRES IT SITS ON IT HAS TWO ADDITIONS ONE IS 14X16 AND OTHER IS 12X18 PLUS 12X24 DECK PLUS 24X24 TWO CAR GRAG PLUS 30X40 SHED CEMEMT FLOOR IN BOTH PLUS BLACK TOP DRIVEWAY
hi brad!
welcome to forums!
you can contact your present lender and apply for a mortgage refinance. if you've the required credit score and income, then you'll be able to get a mortgage refinance. however, the property should have equity in it. if the property does not have equity in it, then the lender will not be ready to refinance your loan.
feel free to ask if you've further queries.
sussane
welcome to forums!
you can contact your present lender and apply for a mortgage refinance. if you've the required credit score and income, then you'll be able to get a mortgage refinance. however, the property should have equity in it. if the property does not have equity in it, then the lender will not be ready to refinance your loan.
feel free to ask if you've further queries.
sussane
what does ur credit score have to be to get approved for a house loan??
Hi dd,
Your credit score will be good only if you have a good credit record. A good credit proves the fact that you have managed your finances well. Thus, the lender will be happy to give you a mortgage as he will feel that you'll be able to pay off the mortgage dues on time.
Thanks
Your credit score will be good only if you have a good credit record. A good credit proves the fact that you have managed your finances well. Thus, the lender will be happy to give you a mortgage as he will feel that you'll be able to pay off the mortgage dues on time.
Thanks
how much money would i need down for a 35,000 loan
We want to buy a manufactured home already set on a pillar foundation and 16 acres however we are having a problem finding a lender. Our high credit score is 635 and low 616 we are not 1st home buyers and we gross 8800.00 a month is there anyone out there that would qualify us for a loan the seller is asking 250,000.00 for home and land it also has a shop and other out buildings in wyoming can you help us
Hi mommastaxi,
You will have to offer 20% down payment if you want to get a mortgage. If you want to take out a mortgage of $35,000, then your down payment will be $7000.
To Vada,
With the credit scores that you've mentioned, you can contact the local lenders offering FHA loans and try to get a mortgage. You will get FHA loans with the credit scores that you have.
You will have to offer 20% down payment if you want to get a mortgage. If you want to take out a mortgage of $35,000, then your down payment will be $7000.
To Vada,
With the credit scores that you've mentioned, you can contact the local lenders offering FHA loans and try to get a mortgage. You will get FHA loans with the credit scores that you have.
how can i refinance my mobile home/land. i just came out of bankruptcy with a credit score in the mid to high 600's. i have a mortgage and a 2nd mortgage that i want to combine into one and have a lower mortgage than i do with the both of them?
Is appraisal mean county appraisal or private there is a big difference in price JUST NEED QUESTION ANSWERED!!!!!!!!!!1
Hi!
Welcome to forums!
To Jackie,
Immediately after a discharge from your bankruptcy filing, you won't be able to get a mortgage refinance. You can get a mortgage after 2-4 years of your bankruptcy filing.
To DUANE,
The appraisal is done by the lender's appraiser in order to access the value of the property. Depending upon that, you'll be able to get a mortgage or a refinance. The appraisal done by the tax department will be used for the purpose of determining property taxes.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Jackie,
Immediately after a discharge from your bankruptcy filing, you won't be able to get a mortgage refinance. You can get a mortgage after 2-4 years of your bankruptcy filing.
To DUANE,
The appraisal is done by the lender's appraiser in order to access the value of the property. Depending upon that, you'll be able to get a mortgage or a refinance. The appraisal done by the tax department will be used for the purpose of determining property taxes.
Feel free to ask if you've further queries.
Sussane
My husband and I are interested in a lot in a resident-owned (co-op) park, which contains an old house that needs to be replaced. We've spoken to a local MH lender about terms of financing such a scenario. Three issues: 1) the required 20% down plus loan origination fees on BOTH transactions (to purchase the lot, and then to finance the new home) is a bit high; 2) the 30-year loan is not fixed, and I'm not entirely comfortable with the idea of an adjustable rate loan; 3) they don't do VA loans, which would help in terms of flexibility on down payment amount.
We have excellent credit and high income, just not a boatload of liquid cash onhand at the moment.
I was wondering if it would be possible to take out 2 loans with 2 separate lenders for the 2 transactions?
i.e. go with the original MH lender we spoke to and purchase the existing home/lot share under their terms (20% down, 30-yr loan adjustable after 5 yrs). And then going through a lender like Cal Vet, which requires only 10% down and has more of a fixed rate (slightly higher, but worth it for fixed)-- for the new home purchase/installation/pullout of old home.
Seems like the best of both worlds, as it helps reduce our total cash needed upfront to close, and if the variable rate does increase, it's on a lesser amount than the entire loan would have been, and so not as drastic of a jump in our monthly payments.
But... is such a situation even allowed/doable?
We have excellent credit and high income, just not a boatload of liquid cash onhand at the moment.
I was wondering if it would be possible to take out 2 loans with 2 separate lenders for the 2 transactions?
i.e. go with the original MH lender we spoke to and purchase the existing home/lot share under their terms (20% down, 30-yr loan adjustable after 5 yrs). And then going through a lender like Cal Vet, which requires only 10% down and has more of a fixed rate (slightly higher, but worth it for fixed)-- for the new home purchase/installation/pullout of old home.
Seems like the best of both worlds, as it helps reduce our total cash needed upfront to close, and if the variable rate does increase, it's on a lesser amount than the entire loan would have been, and so not as drastic of a jump in our monthly payments.
But... is such a situation even allowed/doable?
You can speak to the other local lenders in order to check out if they can help you with a fixed rate mortgage. If you have two separate deeds for the properties, then you can take out two separate mortgages with two lenders. However, if both properties are listed as one in the deed, then you will be able to get one single mortgage.
If a manufactured home was bought that has been lived in for 10 years, is it legal for a bank to give me a construction loan until my other payed off home sells. That way they would get there down payment.
Hi Kelley!
Welcome to forums!
If you already have a mortgage in your name, then the lender won't be ready to give you another loan, though you've lived in the property for 10 years.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you already have a mortgage in your name, then the lender won't be ready to give you another loan, though you've lived in the property for 10 years.
Feel free to ask if you've further queries.
Sussane