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 am currently living with my fiance in a mobile home owned by his family. We have put a considerable amount of work into it to make it nice for us and now I am contemplating buying it and the land it's on. Considering we have put so much work into it, we also have that debt we are paying on. I would like to get a loan exceeding the price of the home&land to pay off the improvements we have made. Any suggestions?
Also, I have a credit score of about 700 and my fiance's is through the toilet so I would be getting the loan in my name only
Hi wattsjc,
You may get a loan depending upon the credit score that you have. You will have to contact the local lenders and apply for a mortgage. If you meet the required criteria of the lender, you will be able to get a mortgage in your name. However, in order to qualify for a mortgage, you will have to get the property transferred in your name.
Thanks
You may get a loan depending upon the credit score that you have. You will have to contact the local lenders and apply for a mortgage. If you meet the required criteria of the lender, you will be able to get a mortgage in your name. However, in order to qualify for a mortgage, you will have to get the property transferred in your name.
Thanks
I would like to purchase a used double wide mobile home with little or no money down for a first time home buyer. I have been having trouble finding someone who will give me a loan due to it being a mobile home. Any Advice on what I can do.
Hi Guest,
With no money down, it will be difficult for you to get a mortgage from the lenders. Nevertheless, you should contact the local mobile home loan lenders and apply for a mortgage with them. They will go through your financial situation and let you know whether or not you will be able to qualify for a loan.
Thanks
With no money down, it will be difficult for you to get a mortgage from the lenders. Nevertheless, you should contact the local mobile home loan lenders and apply for a mortgage with them. They will go through your financial situation and let you know whether or not you will be able to qualify for a loan.
Thanks
i am currently under bankruptcy so what are the requirements for a land/home package?
My manufactured home is paid off...I pay space rent...I am going through a divorce and I wish to borrow $22,500 to buy my wife out...
I'm a senior and on a fixed income...
Is there a way to do this?
I'm a senior and on a fixed income...
Is there a way to do this?
Welcome David,
As your property is free and clear, you can use it as a collateral in order to get a loan. This will help you in buying out your wife.
As your property is free and clear, you can use it as a collateral in order to get a loan. This will help you in buying out your wife.
i have three more payments on my double wide manufactured home. i will then own it, but will continue to rent the land in the park where it is set up. i have been told that i can not get a home equity loan for my double wide because i do not own the land it is on. i live in new york state. is it possible to get a home equity loan on a manufactured home in a park? if so, any suggestions of lenders? my credit rating is good to excellent.
Hi Lynn,
As far as I know, if you have equity in your property, then you can get a home equity loan using your property as the collateral. You should contact other local lenders for the loan and check out if they can help you with one. You can even contact lenders offering personal loan and check out if they can help you with a loan for your manufactured home.
Thanks
As far as I know, if you have equity in your property, then you can get a home equity loan using your property as the collateral. You should contact other local lenders for the loan and check out if they can help you with one. You can even contact lenders offering personal loan and check out if they can help you with a loan for your manufactured home.
Thanks
The mobile home is located in Alexandria VA 22306
Thank you
Thank you
Welcome Vero,
You need to contact the local mobile home loan lenders and apply for a mortgage with them. If you meet the required criteria of the lenders, you will be able to get a loan.
You need to contact the local mobile home loan lenders and apply for a mortgage with them. If you meet the required criteria of the lenders, you will be able to get a loan.
Want to know who would mortgage such a home and how do I contact them
Want to know who would mortgage such a home and how do I contact them