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:
My name is Jamie Bowling, my husband Harold T Bowling and I have just inherited some property from his parents estate. It is about 164 acres, with a barn and block building located on Whites Creek in Boyd Co, KY. The estate has been open since October of 2004, we decided in 2006 to buy a double wide and put on this property in the estate because we knew that it is what we wanted out of the estate and the other two siblings were ok with us getting this as part of the settlement. We just closed the estate this past Tuesday evening, So we have had our double wide sitting on this property since July 2006, we paid cash for the home and put it on a block foundation and built an attached 1 car garage to the home. Now we are the owners of the 164 acres that the home is sitting on. There are also 2 more lots that are right beside ours and we are wanting to purchase the 14 acres that is right next to our barn. My husbands' brother has the lot and is willing to sell it to us for $24,000. What we are wanting to do is to get a mortgage on the house and property for $65,000 and purchase the 14 acres from his brother and pay off our 2 car loans and 4 charge cards that we have and build a porch on the front of the house. I am just trying to give you all the facts up front so you can tell me if you think we can possible do this with you.
We paid $82,000 for our double wide new in 2006, it is on a block foundation, with garage and back deck. The farm was appraised for $174,500 back in 2004 before we put our home on the property.
We do not have a loan of any kind at this time on the property or home.
My credit score is 664 with a couple of late pays on the car loans.
Please review this info and let me know if you think we can work something out or if you need any additional info.
Thanks
We paid $82,000 for our double wide new in 2006, it is on a block foundation, with garage and back deck. The farm was appraised for $174,500 back in 2004 before we put our home on the property.
We do not have a loan of any kind at this time on the property or home.
My credit score is 664 with a couple of late pays on the car loans.
Please review this info and let me know if you think we can work something out or if you need any additional info.
Thanks
Hi fritzbaby,
If your property is free and clear, then you will be able to get a mortgage on it. You should contact the local lenders and start applying for a mortgage. With a credit score of 664, you'll be able to qualify for a FHA loan easily compared to a conventional mortgage. In order to get a conventional mortgage, you should have a credit score of 700-720.
If your property is free and clear, then you will be able to get a mortgage on it. You should contact the local lenders and start applying for a mortgage. With a credit score of 664, you'll be able to qualify for a FHA loan easily compared to a conventional mortgage. In order to get a conventional mortgage, you should have a credit score of 700-720.
I foreclosed on a 1978 mobile home. We want to improve it for sale. What is the process
Hi Joseph,
If you own the property free and clear, then you should contact the local lenders and apply for a home improvement loan. If you have the required credit score and income, then you'll be able to get the mortgage.
If you own the property free and clear, then you should contact the local lenders and apply for a home improvement loan. If you have the required credit score and income, then you'll be able to get the mortgage.
need to talk to a person about a loan to purchase an excisting modular on masonry foundation
Hi Rafael,
You should contact your local lenders and apply for a mortgage to buy a modular home. You will have to meet the required criteria of the lenders in order to get the loan.
Thanks
You should contact your local lenders and apply for a mortgage to buy a modular home. You will have to meet the required criteria of the lenders in order to get the loan.
Thanks
Jessica, we have many questions. Do you make phone calls or can we call you
how and were to sign up for 1st time home buying
on a fixed income
on a fixed income
Hi Shirley,
You can post your detailed query here. This is an online community and the members/experts can give their opinion online.
To roberto,
You should contact your local lenders and apply for a mortgage. The local lenders will check your financial situation and credit condition and let you know whether or not you'll be able to get a mortgage.
You can post your detailed query here. This is an online community and the members/experts can give their opinion online.
To roberto,
You should contact your local lenders and apply for a mortgage. The local lenders will check your financial situation and credit condition and let you know whether or not you'll be able to get a mortgage.
my daughter and son-in-law have a prefab on a private lot 1/4 acre, they had a great mortgage then refinanced 6mo later to a FHA loan, who in a year raised their mortgage, they have been trying for 16 months to refinace to get ther mortgage back under 1100.00. all the financial places they tried told them to quit paying their mortgage and then someone would help them. They did not want to do this as their credit was outstanding. however when their hours at work got cut they did it's been two months and now all the financial institutes tell them they can't help them because they are behind, what the heck????? how can they keep their home?
Hi Virginia!
Welcome to forums!
If your daughter and son-in-law are behind on their mortgage payments, then they won't be able to get a refinance. However, if they bring their mortgage current and if they have equity in their property, then they will be able to get a mortgage refinance.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your daughter and son-in-law are behind on their mortgage payments, then they won't be able to get a refinance. However, if they bring their mortgage current and if they have equity in their property, then they will be able to get a mortgage refinance.
Feel free to ask if you've further queries.
Sussane
We have land with all the utility hook ups. we are needing a loan to put a modular home at the location. the house we are renting is being sold.
[Phone number deleted as per forum rules. Thanks.]
[Phone number deleted as per forum rules. Thanks.]
Hi Heda,
You will have to contact the local lenders who offer loans for modular homes. These lenders will check your financial situation and let you know whether or not you will get a mortgage.
Thanks
You will have to contact the local lenders who offer loans for modular homes. These lenders will check your financial situation and let you know whether or not you will get a mortgage.
Thanks
I had an accident and got behind in 4 payments. My lender will pay two payments and I can make up the other two. I need to get my house refinanced. I was always told that if you were in a park that you would could not get refinancing, so I never looked when things were good. Can you help me keep my home.
I had an accident and got behind in 4 payments. My lender will pay two payments and I can make up the other two. I need to get my house refinanced. I was always told that if you were in a park that you would could not get refinancing, so I never looked when things were good. Can you help me keep my home.