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 majik!
It will be better if you can do some mortgage shopping. Speak to a few lenders about mobile home loans and see the type of loans they are offering you. You will also find FHA mobile home loans. The maximum loan amount for FHA loans will be:
manufactured home only - $48,600
manufactured home lot - $16,200
manufactured home and lot - $64,800
To know more about mobile home loans, how to qualify for them and what are the option, you can visit the following link:
http://www.mortgagefit.com/mobile-homeloan.html
Thanks.
It will be better if you can do some mortgage shopping. Speak to a few lenders about mobile home loans and see the type of loans they are offering you. You will also find FHA mobile home loans. The maximum loan amount for FHA loans will be:
manufactured home only - $48,600
manufactured home lot - $16,200
manufactured home and lot - $64,800
To know more about mobile home loans, how to qualify for them and what are the option, you can visit the following link:
http://www.mortgagefit.com/mobile-homeloan.html
Thanks.
I am wondering is if there is any little to no money down loans for a owned property with a 1972 mobile? Although the property is located in a primarily permanent home neighborhood, not a court or park and has a permanent attached garage. If there isnt any would the "whole price" have to be a personal loan?
Hi montana!
Mobiles homes built prior to 1976 hardly qualify for any kind of mortgage. As the mobile home that you are talking about are built in 1972, I don't think you will get a mortgage. In my opinion, you can take a personal loan. However, you should remember that you will be charged higher interest rates in case of personal loans.
Thanks,
Jerry
Mobiles homes built prior to 1976 hardly qualify for any kind of mortgage. As the mobile home that you are talking about are built in 1972, I don't think you will get a mortgage. In my opinion, you can take a personal loan. However, you should remember that you will be charged higher interest rates in case of personal loans.
Thanks,
Jerry
i live in oklahoma. i would like to find a home equity loan for my 2003 double wide. it is paid off but we need to put a new roof on it. it is on family land and the land cannot be used as collatrol.
Hi terry johnson!
You can use the mobile home as the collateral for the loan if it is attached to the land. You can talk to the lender and I think your loan application will be accepted.
Thanks,
Jerry
You can use the mobile home as the collateral for the loan if it is attached to the land. You can talk to the lender and I think your loan application will be accepted.
Thanks,
Jerry
Can you recomend someone. The Mobile is on peirs not a foundation.
Thanks
Terry Johnson
Thanks
Terry Johnson
Hi Terry Johnson!
If the mobile home doesn't have a permanent foundation, then you won't be getting a mobile home loan for that. You can try for a personal loan but such loans will come at a higher interest rate.
Thanks.
If the mobile home doesn't have a permanent foundation, then you won't be getting a mobile home loan for that. You can try for a personal loan but such loans will come at a higher interest rate.
Thanks.
i have a low credit score, i have not been late on my mortgage that has been 4 months ols, my credit cards are behind and i just started a different job in the past 3 months. i have a single wide that is in a family owned park i would like to refinance the loan and purchase land to put it on. not sure when this would take place but would like to know my options.
Can I borrow money to replace my present not working so good heating and cooling system in my 1978 Hamelton moble home . the cost would be 2800.00 without tax
Hi T. Pearson!
There is a Title 1 home improvement loan available for mobile homes. This is a FHA loan. You can contact FHA sponsored lenders and check if they can give you such a loan.
Thanks,
Jerry
There is a Title 1 home improvement loan available for mobile homes. This is a FHA loan. You can contact FHA sponsored lenders and check if they can give you such a loan.
Thanks,
Jerry
I'm hoping to buy my first home, a mobile home in PA next Spring but I'm confused. I'm looking between the 20,000-37,000 range, but I've noticed that the mortgage companies start at $40,000, or higher. Isn't there any pre-qualifying mortgage companies that start lower? Also, if there are repairs that need doing right off on the home, do you include that in with your loan request? Thanks for any help you can give me.
Hi Marsha!
Welcome to forums!
I think you should get loans between the 20,000-37,000 range. It will be better if you could consult some other lenders. Moreover you can also look for FHA Title 1 loans. FHA approved lenders offer Title I loans for buying and refinancing the manufactured homes for a loan term of 20-25 years at a fixed rate of interest. The FHA lenders also offer a Title II mortgage loan on manufactured homes. With the help of Title 1 loans, home improvements are also possible.
This community also has a number of lender. You can speak to them and seek a no-obligation free mortgage quotes from them. You can then compare the rates and select the one you can afford.
Feel free to ask if you have further queries.
Sussane.
Welcome to forums!
I think you should get loans between the 20,000-37,000 range. It will be better if you could consult some other lenders. Moreover you can also look for FHA Title 1 loans. FHA approved lenders offer Title I loans for buying and refinancing the manufactured homes for a loan term of 20-25 years at a fixed rate of interest. The FHA lenders also offer a Title II mortgage loan on manufactured homes. With the help of Title 1 loans, home improvements are also possible.
This community also has a number of lender. You can speak to them and seek a no-obligation free mortgage quotes from them. You can then compare the rates and select the one you can afford.
Feel free to ask if you have further queries.
Sussane.
What financial institute would loan us money for a mobile home in a community that rents the lot? We have bad credit due to husbands illnesses but have a co-signer willing to help us. Can you help?
Hi cbizkette
You have said that you have a bad credit. In that case, I think it will be difficult for you to get mortgage for the mobile home. Keeping in mind the present market situation, the lenders are offering loan to people who have excellent credit.
However, I would suggest you to talk to the local lenders or banks and see what they are offering you. This community also has a number of lenders and you can seek a no-obligation free mortgage consultation from them. Then you can compare the rates and select the one which you can afford.
Thanks
You have said that you have a bad credit. In that case, I think it will be difficult for you to get mortgage for the mobile home. Keeping in mind the present market situation, the lenders are offering loan to people who have excellent credit.
However, I would suggest you to talk to the local lenders or banks and see what they are offering you. This community also has a number of lenders and you can seek a no-obligation free mortgage consultation from them. Then you can compare the rates and select the one which you can afford.
Thanks