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 want to purchase a manufactured home on land in the state of Washington, but I had a bankruptcy one year ago. I have social security as income. An y hope of purchasing? Maybe with a co-signer?
Welcome sande,
What type of bankruptcy did you file? If you filed Chapter 13, then can get a FHA loan after 1 year and conventional loan after 2 years. If you filed Chapter 7, then you'll have to wait for 2 years to get a FHA loan and 4 years to get a conventional loan.
What type of bankruptcy did you file? If you filed Chapter 13, then can get a FHA loan after 1 year and conventional loan after 2 years. If you filed Chapter 7, then you'll have to wait for 2 years to get a FHA loan and 4 years to get a conventional loan.
We currently own our home and property, and would like to purchase the house behind ours. It is a manufactured home, double wide, with a large stick garage, and real property. We will use the home as a rental, but are having trouble finding someone to get a loan through. The total amt we will need is about 60,000.00 to borrow. Can you help us out?
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
Hi Susie!
Welcome to forums!
If you have a mortgage on your existing property, then it will be difficult for you to qualify for another mortgage on a new property. You can apply for personal loans in order to buy a manufactured home. However, you should note that such loans are available at a higher interest rate.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you have a mortgage on your existing property, then it will be difficult for you to qualify for another mortgage on a new property. You can apply for personal loans in order to buy a manufactured home. However, you should note that such loans are available at a higher interest rate.
Feel free to ask if you've further queries.
Sussane
We have been pre approved by FHA loan for a house we were wanting to get and it turns out that we couldnt get the house because we didnt agree on so many things with the seller. We would like to get a mobile home instead so we want to know what we need to do to apply for that. Do we apply again to get pre approved for a mobile home or what do we need to do? thanks.
Hi MOH!
Welcome to forums!
As far as I can understand, you may have to re-apply for a new loan and get approved for a mobile home loan once again. Nevertheless, you should have a word with your lender in this regard and take his opinion in this matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I can understand, you may have to re-apply for a new loan and get approved for a mobile home loan once again. Nevertheless, you should have a word with your lender in this regard and take his opinion in this matter.
Feel free to ask if you've further queries.
Sussane
We are going through a Chapter 7 and own a mobile home with a secured loan. Our attorney told us yesterday that after the foreclosure that we will still be responsible for any damages done after we move out, which we intend to do. We will leave it in good condition. She said the only way for us to be out from under the responsibility is through a Short sale which would cost another $400. to facilitate this. ???
Hi Guest!
Welcome to forums!
It is true that unless you sell off the property, you will be responsible for the maintenance of the property. Thus, it's better to sell off the property once you move out of it. You may have to pay a certain amount in order to short sale the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It is true that unless you sell off the property, you will be responsible for the maintenance of the property. Thus, it's better to sell off the property once you move out of it. You may have to pay a certain amount in order to short sale the property.
Feel free to ask if you've further queries.
Sussane
our old bankruptcy will be off credit report in dec 2011. do you think we can get a mobile home loan now?or should we wait till then. we have good credit scores now no late payments. really good income. thanks
we would like to buy a mobile home. the purchase price is 80,000. we have about 30,000 to put down. our credit is poor. can you help us.
Hi tom!
Welcome to forums!
With a poor credit, it will be difficult for you to qualify for a mortgage. You will have to improve your credit score before applying for a mortgage. To know some steps to improve your credit score, check out the given page: http://www.mortgagefit.com/credit-rating/credit-repair.html .
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
With a poor credit, it will be difficult for you to qualify for a mortgage. You will have to improve your credit score before applying for a mortgage. To know some steps to improve your credit score, check out the given page: http://www.mortgagefit.com/credit-rating/credit-repair.html .
Feel free to ask if you've further queries.
Sussane
I am a lightly disabled vetern w/ lease/option on a 6ac. property w/ a mobilhome on it.I will rehab the home to suit me. The home is a 1972 singlewide on a slab w/basement and16x20 addition.have lived on property for 2.5yrs.Where can I find financing.
I'm looking at a piece of property (4.6 acres) that has 2005 single wide mobile on it. We'd be looking at living in the mobile while building a house in the near future and then either removing the mobile or renting it out. What options do I have in loans? I live in Washington State.
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
It's a manufactured home...not mobile.