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 wife and i have great credit history, both in the mid 700's, we unfortunatly bought a home at the worst time, 4 years ago. we want to take advantage of the newer rates to save money, as both our jobs have taken a hit also. we have never been late on rent or morgage in 20 years. we make about 60k a year. is it possable to refinance this home? we are in a 6% fixed morgage 4 1/2 years in? please help!
I need to take advantage of these new rate based on the economy. We bought our home at the worst time it seems, 4 years ago. It's a 30 year fixed around 6%. Were 4 1/2 years in with great credit {both mid 700's} but we are facing tough times in my job. Hours cut, etc. we have never missed or been late on morgage or rent in over 20 years. seems like a sure fit for a new loan, but we don't know where to turn? help us please . .
I'm new and have some questions about refi on a manufactured, where are my posts, how do I view them?
Hi barbandsully,
Your query has been replied to in the given page:
http://www.mortgagefit.com/postdeal/about48637.html#199209
Take a look at it. Hope it helps you.
Your query has been replied to in the given page:
http://www.mortgagefit.com/postdeal/about48637.html#199209
Take a look at it. Hope it helps you.
As stated in subject, in the process closing on raw land, then I'll put a mobile on foundation and pursue refinancing...I've read up on some of the refinance land/mobile topics (mobile home age, etc.) and wondering the best way to proceed and lump all these together for a low fix rate. Great credit, good job for 10 yrs.
what is the minimum age of the mobile home, on its own lot in park and can a singlwide qualify for a mortgage, also what is the down payment
We live in CA and paid 335000 for our property and mobile. It is now worth 100000 or so. It is also over 20 years old. We've already lost so much money we're thinking of doing a short sale. Is it true you cannot finance a mobile home over 20 years old? Would you do a short sale and move? Thanks
Hi Zotty,
You can take out a mortgage in order to buy the land. You will have to build up equity in your land in order to refinance it and put a mobile home on it. Though you have a good job and good credit, unless you've equity in your property, you won't be able to get a mortgage refinance.
To renee,
Mobile homes which are built after 1976 can qualify for mortgage. If you want to take out a conventional mortgage, you should provide a down payment of 20% and in case of a FHA loan, you will have to provide a down payment of 3.5% - 5%.
To Annie,
Lenders won't be ready to offer loans on those mobile homes which are build before 1976.
You can take out a mortgage in order to buy the land. You will have to build up equity in your land in order to refinance it and put a mobile home on it. Though you have a good job and good credit, unless you've equity in your property, you won't be able to get a mortgage refinance.
To renee,
Mobile homes which are built after 1976 can qualify for mortgage. If you want to take out a conventional mortgage, you should provide a down payment of 20% and in case of a FHA loan, you will have to provide a down payment of 3.5% - 5%.
To Annie,
Lenders won't be ready to offer loans on those mobile homes which are build before 1976.
i currently have a mortgage on a 1974 modular on a foundation with 2 acre lot. i would like to combine this loan with a small home equity loan , to lower payment with better rate, but was told by my mortgage co. that this was not possible due to changes in banking laws
Hi joescustoms,
It is true that mobile homes which are build before 1976 do not qualify for loans. In such a situation, it will be difficult for you to qualify for a mortgage on that home.
It is true that mobile homes which are build before 1976 do not qualify for loans. In such a situation, it will be difficult for you to qualify for a mortgage on that home.
need phone number in ohio
Hi Monica,
Whose phone number do you require? Your query is not clear. Please explain your query in details.
Thanks
Whose phone number do you require? Your query is not clear. Please explain your query in details.
Thanks
the town lists our title as mobil home on 2 acres we have build additions all around it.there is basement under most all of the addions and the mobile home now.our credit is in need of help. but right now because of all the additions. we really need to refiance everything and consalidate all loans. is there anyone out there that can or will help us ?
Hi Mary,
A query similar to yours has been mentioned in the given page:
http://www.mortgagefit.com/annoucements/about48907.html
Take a look at it. Hope it helps you.
A query similar to yours has been mentioned in the given page:
http://www.mortgagefit.com/annoucements/about48907.html
Take a look at it. Hope it helps you.