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:
I need Refinancing. That doesn't require leaving the in a Mobile Home Park.
do loan to least land mobile home park
hi donna,
as the insurance company has canceled the insurance, there are chances that the lender will impose insurance from his end on your property. you may have to pay a higher insurance premium in that case.
to clay,
if you want to refinance your mobile home, you should have equity in your property. apart from this, excellent credit scores and stable income are two other criteria to get a mortgage refinance. contact the local mobile home loan lenders in order to get a mobile home loan.
to anonymous,
your query is not clear to me. can you please post your query in details so that not only me but other members can give you their suggestions?
take care.
as the insurance company has canceled the insurance, there are chances that the lender will impose insurance from his end on your property. you may have to pay a higher insurance premium in that case.
to clay,
if you want to refinance your mobile home, you should have equity in your property. apart from this, excellent credit scores and stable income are two other criteria to get a mortgage refinance. contact the local mobile home loan lenders in order to get a mobile home loan.
to anonymous,
your query is not clear to me. can you please post your query in details so that not only me but other members can give you their suggestions?
take care.
Do I make my amount for my loan larger for repairs?
We have a manufactured home built new is 1993, on our own land. His score is 620 and mine is 580. We only owe 14,500 on it now, but we would like to refiance & pay everything off. We have applied with some companies, but have been turn down because of our score or they say we were late on 2 credit cards more then 30 days late back in 09. Can you give me advise on a company that can maybe help us. :x
hi my name is gina ive bgeen looking to see if
Hi Tdavis,
Your credit scores are quite low. In such a situation, you should contact the local FHA lenders in order to get a mortgage. With the credit scores that you've mentioned, you can qualify for FHA loans provided you satisfy all the other criteria.
To gina,
Are you looking for a mobile home loan?
Thanks,
Jerry
Your credit scores are quite low. In such a situation, you should contact the local FHA lenders in order to get a mortgage. With the credit scores that you've mentioned, you can qualify for FHA loans provided you satisfy all the other criteria.
To gina,
Are you looking for a mobile home loan?
Thanks,
Jerry
hi i'm juan and i just need a loan to buy a mobile home but my credit is not in good standing wright now i just need a loan for 6,000.00$ i have 10,000$ cash with me is there any posibilitie that i can have that amount of loan if my credit is not good? i can paid that loan in 1year or less
how may I secure a low cost improvment loan for construction on a mobile home.
I have a mobile home I own and want to put on a new deck back and front and a garage in a mobile home park. Can I get a loan for that ?
Hi!
Welcome to forums!
To Mick,
You will have to speak to the local mobile home loan lenders of your area and check out if you can qualify for a low cost improvement loan for construction on a mobile home.
To Vicky,
You will be able to get a loan provided you have the required credit score, debt to income ratio and a stable employment.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Mick,
You will have to speak to the local mobile home loan lenders of your area and check out if you can qualify for a low cost improvement loan for construction on a mobile home.
To Vicky,
You will be able to get a loan provided you have the required credit score, debt to income ratio and a stable employment.
Feel free to ask if you've further queries.
Sussane
We are trying to sell our mobile home. Our realtor is telling us that a qualified buyer must put down 25%. This seems awfully high. We live in Oklahoma.
a week ago Jessicia
Hi I live in Rochester, N.Y.( Canadaigua) I have worked with a local mortague financing specialist and I am self contracted as a hairdresserand, part of my income is cash and when I did my taxes, tax accountant did my taxes, instead of putting the cash amount as income, it was put in my scchedual C .So this has not flown with, finaning the manufactured home. I came across your sight and saw no income, no asset verification loans. I need to do this asap I the sellers signed the agreement 1/14/11. please all me at 585 957-- 0100 or try e-mailing me at swilliams@rochester.rr.com I apprieciate your help
Sharon Williams
Hi I live in Rochester, N.Y.( Canadaigua) I have worked with a local mortague financing specialist and I am self contracted as a hairdresserand, part of my income is cash and when I did my taxes, tax accountant did my taxes, instead of putting the cash amount as income, it was put in my scchedual C .So this has not flown with, finaning the manufactured home. I came across your sight and saw no income, no asset verification loans. I need to do this asap I the sellers signed the agreement 1/14/11. please all me at 585 957-- 0100 or try e-mailing me at swilliams@rochester.rr.com I apprieciate your help
Sharon Williams
Hi
I,m trying to purchase a 14x 60 manufactured home. 2006 Colony Commaodore, Timberline 906 living space SE20644 A
Located in Canandaigua, N.Y. Canandaigua Country Esrates
555 Purdy Road lot #9 Lot rent 380.00 Burke Manufactured Homes, has the mobile home park.
My problem is that I have worked with a manufatured home finacing specialist. I am a self contracted Hairdresser and the problem I have is I get cash, and the tax guy, didn't enter it as cash, but put it on rhe secudual c part of my 2009 income, and I also had the business director, sign the sheet , where I wrote, down all the information for the year. So beccuase of this the mortague can not be gotten, at this time. I have excellant credit score, 670. WOULD YOU PLEASE E-MAIL ME @ SWIIIAMS83 @ROCHESTER.RR.COM. asap, AS OF ON 1/14/2011, THE SELLERS HAVE SIGNED THE AGREMENT AND WANT TO MOVE ON, AND THIS IS MY LAST HOPE.PLEASE ALL ME AT 585 957-0100. tHIS WILL BE ALOT FASTER, AS i NEED TO HAVE AN ANSWER asap.TtHANK YOU
SHARON WILLIAMS
I NOTIED YOU HAVE A NO INCOME NO ASSETS VERIFICATION LOANS. tHIS SHOULD SOLVE MY PROBLEM
I,m trying to purchase a 14x 60 manufactured home. 2006 Colony Commaodore, Timberline 906 living space SE20644 A
Located in Canandaigua, N.Y. Canandaigua Country Esrates
555 Purdy Road lot #9 Lot rent 380.00 Burke Manufactured Homes, has the mobile home park.
My problem is that I have worked with a manufatured home finacing specialist. I am a self contracted Hairdresser and the problem I have is I get cash, and the tax guy, didn't enter it as cash, but put it on rhe secudual c part of my 2009 income, and I also had the business director, sign the sheet , where I wrote, down all the information for the year. So beccuase of this the mortague can not be gotten, at this time. I have excellant credit score, 670. WOULD YOU PLEASE E-MAIL ME @ SWIIIAMS83 @ROCHESTER.RR.COM. asap, AS OF ON 1/14/2011, THE SELLERS HAVE SIGNED THE AGREMENT AND WANT TO MOVE ON, AND THIS IS MY LAST HOPE.PLEASE ALL ME AT 585 957-0100. tHIS WILL BE ALOT FASTER, AS i NEED TO HAVE AN ANSWER asap.TtHANK YOU
SHARON WILLIAMS
I NOTIED YOU HAVE A NO INCOME NO ASSETS VERIFICATION LOANS. tHIS SHOULD SOLVE MY PROBLEM