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 delmy!
Welcome to forums!
Your query is not clear to me. Please post your query in details so that members/experts participating here can give a reply to it.
Sussane
Welcome to forums!
Your query is not clear to me. Please post your query in details so that members/experts participating here can give a reply to it.
Sussane
we have had our mobile home for 4 yrs and want to refinance at a lower rate but our credit is not perfect we have made all our payments on time in four yrs. would it be possible to get a cheaper rate with less than perfect credit we are paying 16% right now.
Hi bonnie!
Welcome to forums!
As you have a low credit score, it will be difficult for you to refinance your mortgage for a cheaper rate. If you wish to get a cheaper rate, then you will have to improve your credit score. 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!
As you have a low credit score, it will be difficult for you to refinance your mortgage for a cheaper rate. If you wish to get a cheaper rate, then you will have to improve your credit score. 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
Several years back I purchased a Moble Home and used my property (which was paid for) as down payment. The Mortgage broker told me I had to have a construction loan first and then the final loan and that we would close both loans the same day. I don't understand Why I needed a construction loan. The septic tank, well was already in place because a mobile had already been on the site and was removed a couple of years earlier. I have a 203b loan and I don't understand why I have 203k mortgage streamline anaylisis paperwork? Should I have needed a construction loan and 203k paperwork when I have a 203b loan?
Hi Guest!
Welcome to forums!
I don't think you should have needed both. You may refinance both the loans in to a single loan now if you have equity in your property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I don't think you should have needed both. You may refinance both the loans in to a single loan now if you have equity in your property.
Feel free to ask if you've further queries.
Sussane
i am currently under a chapter 13 bankruptcy. i currently owe approx. 27,000.00 . i have a 1200 square foot modular home with a little more than one acre of land . just checking to see if there are any lenders that would be able to help on a loan for approx 5 years . i am currently paying 700.00 a month would like to get this lower if possible . :?
Hi countryliving,
If you have filed bankruptcy which haven't been discharged yet, then none of the lenders will be ready to give you a mortgage/loan.
Thanks
If you have filed bankruptcy which haven't been discharged yet, then none of the lenders will be ready to give you a mortgage/loan.
Thanks
I want to purchase an older mobile home that is in very good condition, and I'm in bankruptcy. Is it possible to get a loan?
Hi pete,
Mobile or manufactured homes which are built before 1976 hardly qualify for any kind of loans. Thus, it will be difficult for you to get a loan. You can contact the lenders who offer personal property loans and check out if they can help you in this regard.
Thanks
Mobile or manufactured homes which are built before 1976 hardly qualify for any kind of loans. Thus, it will be difficult for you to get a loan. You can contact the lenders who offer personal property loans and check out if they can help you in this regard.
Thanks
My husband and I are trying to get a loan for a mobile home and four acres of land in Saint Clair county in Missouri.
We own the land free and clear next to the mobile home and land we are looking to buy.
The land has all the improvemants and the mobile home is a 1999, 16 by 80 foot beautiful home which is attached to the ground.
The only problem we have on our credit is a repo. on a car I cosigned for. I am now paying on that repo and I always make on time payments on mine and my husbands credit cards etc and we own our cars free and clear. We are both in our sixties.
What kind of loan and what company should we go with?
We own the land free and clear next to the mobile home and land we are looking to buy.
The land has all the improvemants and the mobile home is a 1999, 16 by 80 foot beautiful home which is attached to the ground.
The only problem we have on our credit is a repo. on a car I cosigned for. I am now paying on that repo and I always make on time payments on mine and my husbands credit cards etc and we own our cars free and clear. We are both in our sixties.
What kind of loan and what company should we go with?
Hi SRM!
Welcome to forums!
You can go for a conventional loan or a FHA loan depending upon the type of credit score and income. You can even apply for a reverse mortgage if you're 62 years of age. However, it is a fact that not many lenders offer a reverse mortgage for mobile homes.
Feel free to ask if you've further queries
Sussane
Welcome to forums!
You can go for a conventional loan or a FHA loan depending upon the type of credit score and income. You can even apply for a reverse mortgage if you're 62 years of age. However, it is a fact that not many lenders offer a reverse mortgage for mobile homes.
Feel free to ask if you've further queries
Sussane
MY HUSBAND AND I ARE BROKING UP.THE MOBLIC AND LAND IN MY MAINED NAME,HE NEEDS A LOAN FOR $40,000. IN HIS NAME ONLY.NOW WE FILED BANKRUPTEY CHAMPTER 13.IN 2004 AND PAYED OFF EARILY IN 2009.THANK YOU
[Email address deleted as per forum rules. Thanks.]
[Email address deleted as per forum rules. Thanks.]
Hi AUTUMABLUE!
Welcome to forums!
What do you exactly want to know? Your query is not clear to me. Please post your query in details so that it becomes easier for me to give a reply to your query.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
What do you exactly want to know? Your query is not clear to me. Please post your query in details so that it becomes easier for me to give a reply to your query.
Feel free to ask if you've further queries.
Sussane