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:
Have been trying with no success to procure a mortgage for a '78 mobile home with land. Any ideas?
we found the perfect older mobile home with an add on and three acres of land. What type of loan would we want to be looking for to obtain this great find
my land is paid for and i owe 42 thousand on my double wide house that is ten years old i would like to pay off a 3 thousand dollar truck loan and drop the interest rate on my mortgage at the same time do you know what or how i can accomplish this since i owe $42000 and property land and home is worth about $100000 can i cash out or borrow 65 and combine the property and hoouse together
i own a peice of land with a moble home on the property. I owe nothing on it and would like take a loan out on it to pay off some bill, however i having a hard time finding a bank or financial co. Any ideals?
i had to file chapater 13 after my husband left me and my 2 kids after 20 years but no one will give me a chance to purchase a home please help
lease with option to purchase will this qualify me for the first time home owners tax benifit?
my husband credit is 550 and mine is 520.. we are currently living in a mobile home we still owe 6000 on, we are in need of a 3 bedroom mobile home. how could i get a loan with no land avaiable
Hi!
Welcome to forums!
To jimmallory,
I don't think the lease purchase option will help you in qualifying for the first time home owner's tax credit.
To bm,
With a credit score of 550 and 520, you and your husband won't be able to qualify for any kind of loan. Even to qualify for a FHA loan, you should have a credit score of 580-620. So, you should improve your credit score and then apply for a mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To jimmallory,
I don't think the lease purchase option will help you in qualifying for the first time home owner's tax credit.
To bm,
With a credit score of 550 and 520, you and your husband won't be able to qualify for any kind of loan. Even to qualify for a FHA loan, you should have a credit score of 580-620. So, you should improve your credit score and then apply for a mortgage.
Feel free to ask if you've further queries.
Sussane
how do I get loan for down payment 100,000.00 with credit at 589
Welcome angel,
With a credit score of 589, you won't be able to qualify for a mortgage. You will have to improve your score before you apply for any kind of mortgage.
With a credit score of 589, you won't be able to qualify for a mortgage. You will have to improve your score before you apply for any kind of mortgage.
I am not sure how to do this, but I am living in the home with my children that my husband and I got together, well now we are divorced and I have two years to refinance or move out..so is there any way that I can refinance, the mort is in his name only, and Ineed to get about 19,ooo.oo more than what we owe to pay his parents back as well.. any ideas..it is really confusing.
Hi Jamie,
You will have to check out whether or not you've equity in your property. If there is equity in your property, then you will be able to refinance the mortgage. You can go for cash out refinance which will help you in paying off the dues of your ex-husband's parents.
Thanks
You will have to check out whether or not you've equity in your property. If there is equity in your property, then you will be able to refinance the mortgage. You can go for cash out refinance which will help you in paying off the dues of your ex-husband's parents.
Thanks
We have an option to buy our mobile home together with the land it sits on. It is not in a park or community. It does not have a cement foundation. It appears to be sitting on cleared dirt. Is this cement foundation required? My daughter and I both have credit scores at or near 580. Income is not a problem. We want to make an offer of $100,000 and have already put up a $15,000 downpayment toward a future purchase when we rented the place. At this price our purchase will be well below actual value. And Our downpayment will be considerably above the actual property value. The manufactured home probably has a value of about $30,000. It sits on 9 wooded acres with a value consideably above 100,000. Can we ignorel the physical dwelling, and with our low credit score find a land loan lender to provide us with the loan? Please help. :idea:
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
Hi tedandderby,
With a credit score of 580, it will be difficult for you to qualify for a mortgage. You should take steps in order to improve your score. Also, it will be easier for you to get a loan if your property has a permanent foundation.
Thanks
With a credit score of 580, it will be difficult for you to qualify for a mortgage. You should take steps in order to improve your score. Also, it will be easier for you to get a loan if your property has a permanent foundation.
Thanks