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 Jerimy,
If you don't have a credit history, it won't be possible for you to qualify for a mortgage. If your girlfriend has a credit history along with a good credit score, then she will be able to qualify for a mortgage. She can even take the help of a co-signer in order to qualify for a loan.
If you don't have a credit history, it won't be possible for you to qualify for a mortgage. If your girlfriend has a credit history along with a good credit score, then she will be able to qualify for a mortgage. She can even take the help of a co-signer in order to qualify for a loan.
we would like to buy a new mobile home ,second home .i have ex credit,we have 10% for down payment,we are buying our land in another state.we need a loan for 50,000.we don't have closing cost.
Hi dlc,
The lenders will want you to go for 20% down payment. Or else the lender can ask you to go for a pmi. Apart from that, I don't think you'll face issues in getting a loan.
The lenders will want you to go for 20% down payment. Or else the lender can ask you to go for a pmi. Apart from that, I don't think you'll face issues in getting a loan.
Hi Jessica, do you do mobile home loans?
Hi josenino!
Welcome to forums!
This is a community which offers mortgage and other financial advices to the people. This community cannot give you loans. However, there are lenders who actively participate in the forums. You can apply for a no obligation free mortgage quote from them and check out if they can help you with a mobile home loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
This is a community which offers mortgage and other financial advices to the people. This community cannot give you loans. However, there are lenders who actively participate in the forums. You can apply for a no obligation free mortgage quote from them and check out if they can help you with a mobile home loan.
Feel free to ask if you've further queries.
Sussane
I have been looking to purchase a moblie home and with my bad credit want anyone touch me. Is there anyone that would be willing to help?
I currently have financing on my manufactored Home(half way paid off) but I do not have land Is there a way refi to buy land
if i have a credit card and a truck payment , payments are always paid on time . Would i be qualify for a mobile home morgage having the 5% dowm payment
price 32thousand with 6thousand down who would fiancie credit under six
Hi!
Welcome to forums!
To Guest,
With a 5% down payment, you may qualify for a mobile home mortgage but you'll have to go for a private mortgage insurance. Though you pay your debts on time, you should have a stable income and a good credit score in order to get a home mortgage.
To lenchap,
It will be difficult for you to get a mortgage for a mobile home which was build before 1976. Most lenders are concerned about the life of the property for such old mobile homes.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To Guest,
With a 5% down payment, you may qualify for a mobile home mortgage but you'll have to go for a private mortgage insurance. Though you pay your debts on time, you should have a stable income and a good credit score in order to get a home mortgage.
To lenchap,
It will be difficult for you to get a mortgage for a mobile home which was build before 1976. Most lenders are concerned about the life of the property for such old mobile homes.
Feel free to ask if you've further queries.
Sussane
I would like to refinace my mobile home, but have bad credit, how do I find lenders that might accept me. I have good income, and have made all my home payments on time for 3 years.
Hi regency,
With a bad credit, it will be difficult for you to qualify for a mortgage. The lenders will not be ready to give you a refinance. You should have a credit score of around 700-720 in order to get a conventional mortgage refinance. So, I'll suggest you to improve your credit first and then look out for a loan.
Thanks
With a bad credit, it will be difficult for you to qualify for a mortgage. The lenders will not be ready to give you a refinance. You should have a credit score of around 700-720 in order to get a conventional mortgage refinance. So, I'll suggest you to improve your credit first and then look out for a loan.
Thanks
I want to refinance my single mobile home in order for me to move it away from the parking lot I am renting, but I want to be able to find a finance company that can finance both the land and the mobile home? Help!
Hi mrmsdiva,
You should contact the local mobile home loan lenders in order to get a mortgage for the land and the mobile home. If you meet the required criteria of the lenders and have the required credit scores and income, then you will be able to qualify for a mortgage.
You should contact the local mobile home loan lenders in order to get a mortgage for the land and the mobile home. If you meet the required criteria of the lenders and have the required credit scores and income, then you will be able to qualify for a mortgage.