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 Lynn,
As it is a 1972 made mobile home, I don't think you will be able to get financing for the same from the conventional lenders. I will suggest you to contact lenders who offer personal property loans and check out if they can help you in this case.
Hi Jasmine,
You should contact the local lenders and apply for a mobile home loan. The lender will check your financial situation and let you know whether or not you'll be able to qualify for a mortgage.
Take care
As it is a 1972 made mobile home, I don't think you will be able to get financing for the same from the conventional lenders. I will suggest you to contact lenders who offer personal property loans and check out if they can help you in this case.
Hi Jasmine,
You should contact the local lenders and apply for a mobile home loan. The lender will check your financial situation and let you know whether or not you'll be able to qualify for a mortgage.
Take care
I have great credit....which I was pre approve for the loan but the bank just don't work with manufactured homes....So I'm having trouble finding a bank that will give me a loan for a 1997 manufactured home in Mayville, Michigan.
Welcome donnakc,
Your can contact lenders offering personal loans. They might be able to help you with a loan for your manufactured home.
Your can contact lenders offering personal loans. They might be able to help you with a loan for your manufactured home.
I agree with Adonis here. You can check out lenders who grant personal loans, and they might be able to handle using the mobile home as collateral...propose it to them and see what they say. When I say "lenders" I also mean to include credit unions, since their policies are generally more user-friendly, i.e. liberal, and they might be amenable to your needs and desires.
Hi,
I have bad credit and about 20,000 in school loans. My husband has good credit and about the same amount in loans. I am the only one with a job and make about 1,200 a month after taxes. We want to move into a mobile home with a price of 29,000. We have a down payment of 3,000. Is there any way to get a loan for the mobile home?
Thanks
I have bad credit and about 20,000 in school loans. My husband has good credit and about the same amount in loans. I am the only one with a job and make about 1,200 a month after taxes. We want to move into a mobile home with a price of 29,000. We have a down payment of 3,000. Is there any way to get a loan for the mobile home?
Thanks
Great idea, James, but $20K in student loans isn't something you decide to pay off one day and do the next.
Nicki, search around in your area with every lender you can find...eventually you will, we hope, find one who'll consider your request. It's only so many phone calls, after all - some are on the phone all day long for no reason, so this would be a benefit for you when you find one.
Check online as well, of course, and don't be too afraid of national lenders, because that might end up being what you need for this transaction.
Nicki, search around in your area with every lender you can find...eventually you will, we hope, find one who'll consider your request. It's only so many phone calls, after all - some are on the phone all day long for no reason, so this would be a benefit for you when you find one.
Check online as well, of course, and don't be too afraid of national lenders, because that might end up being what you need for this transaction.
my boyfriend left me after 7 years. the mobile home was in his name but i am on the lease and the loan. his credit score was higher than mine. I have money to pay the loan each month, but how do i get this converted over to where me and my parents will be paying on it and get him off the loan. He's know where to be found. walked out on kids
Hi anita!
Welcome to forums!
Your boyfriend needs to transfer the property and then you can pay off the loan in full. If you have any contact details of that person, you should contact him in order to sort out the matter.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your boyfriend needs to transfer the property and then you can pay off the loan in full. If you have any contact details of that person, you should contact him in order to sort out the matter.
Feel free to ask if you've further queries.
Sussane
Great idea, Sussane, but B/F is "nowhere to be found."
Anita, you're likely going to have to seek out an attorney's assistance. I believe that you'd be able to advertise in the classified ads for the whereabouts of your former B/F, for a certain period of time; and when the time elapses, you'd presumably have the right to work on your goal of changing things relating to the property.
Lawyers will consult with you without cost, as a general rule, so you'll be able to ask your questions and pose the problem and, we hope, get the solution you're seeking.
Anita, you're likely going to have to seek out an attorney's assistance. I believe that you'd be able to advertise in the classified ads for the whereabouts of your former B/F, for a certain period of time; and when the time elapses, you'd presumably have the right to work on your goal of changing things relating to the property.
Lawyers will consult with you without cost, as a general rule, so you'll be able to ask your questions and pose the problem and, we hope, get the solution you're seeking.
I have a mobile home which I make a monthly payment on, and I want to purchase land to permanently attach the mobile home. What is the best type of loan to apply for in order to combine all moving, setup and closing costs?
Hi krazymomma,
You can apply for a land loan in order to purchase the land and move the property on it. You can even have a word with your lender who can assist you in knowing the best suitable loan for you depending upon your financial circumstances.
Thanks
You can apply for a land loan in order to purchase the land and move the property on it. You can even have a word with your lender who can assist you in knowing the best suitable loan for you depending upon your financial circumstances.
Thanks
Momma, what you may not realize in this situation is that lenders will typically require a fairly substantial down payment (as much as 25%) when it comes to land purchases. There are not a great many lenders who offer land loans to begin with, so you'll need to do some serious shopping around. Perhaps you'll find someone who would afford you the opportunity to purchase with a lesser down payment.
Shop with national lenders (though they're unlikely to be of assistance), and local lenders as well (credit unions, small community-type banks, some of the larger state-based banks). You'll undoubtedly be working with a real estate agent to help you find a piece of land on which to park your home, and you'll need to look for an agent who has an idea of where to find exotic loans. That might mean that you'll end up working with what's called a "hard-money" lender - someone who's not working with secondary markets, not charging "market" rates, and who is far more willing to take risks, such as lending against land.
Shop with national lenders (though they're unlikely to be of assistance), and local lenders as well (credit unions, small community-type banks, some of the larger state-based banks). You'll undoubtedly be working with a real estate agent to help you find a piece of land on which to park your home, and you'll need to look for an agent who has an idea of where to find exotic loans. That might mean that you'll end up working with what's called a "hard-money" lender - someone who's not working with secondary markets, not charging "market" rates, and who is far more willing to take risks, such as lending against land.
hi jessica,
i am 59, my husband is around 64, both drawing ss#. we have a very nice forty three acres and an 1986 or 88 moblie home. i would call it a fix-
her up er. we owe around 57,000 on them. would like to get an newer mob. home that we found and pay off a few sm. loans. would like to pay off the land & old home& refinance to a total of around 115,000.
can you help us ?
diane
i am 59, my husband is around 64, both drawing ss#. we have a very nice forty three acres and an 1986 or 88 moblie home. i would call it a fix-
her up er. we owe around 57,000 on them. would like to get an newer mob. home that we found and pay off a few sm. loans. would like to pay off the land & old home& refinance to a total of around 115,000.
can you help us ?
diane
Hi Jessica,
I am 59, my husband is around 64, both drawing SS#. We have a very nice forty three acres and an 1986 or 88 moblie home. I would call it a fix-
her up er. We owe around 57,000 on them. Would like to get an newer mob. home that we found and pay off a few sm. loans. Would like to pay off the land & old home& refinance to a total of around 115,000.
Can you help us ?
Diane
I am 59, my husband is around 64, both drawing SS#. We have a very nice forty three acres and an 1986 or 88 moblie home. I would call it a fix-
her up er. We owe around 57,000 on them. Would like to get an newer mob. home that we found and pay off a few sm. loans. Would like to pay off the land & old home& refinance to a total of around 115,000.
Can you help us ?
Diane