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 rachelbell!
Welcome to forums!
You will have to contact the local mobile home loan lenders and apply for a mortgage on your 2001 mobile home. This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out if you can qualify for a mobile home loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will have to contact the local mobile home loan lenders and apply for a mortgage on your 2001 mobile home. This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out if you can qualify for a mobile home loan.
Feel free to ask if you've further queries.
Sussane
Me and my mom are on the title of the mobile home. there is about 35,000 left on the mortgage she upped and left me to pay it all by myself. If i make the rest of the payments can i sue her for her half she didnt pay?
Hi akakim!
Welcome to forums!
You may sue her for her payments if her name is mentioned on the mortgage docs. However, if you want to save your property, then you will have to make the mobile home loan payments in full.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You may sue her for her payments if her name is mentioned on the mortgage docs. However, if you want to save your property, then you will have to make the mobile home loan payments in full.
Feel free to ask if you've further queries.
Sussane
Jessica, I found a nice acre along the river(out of flood plain) with a small older trailer on it which is in excellent shape. Unfortunately the banks are telling me they will not finance a trailer.
I am desperatly looking for a way to purchase this. The owner are thinking about rent to own but it dont look hopefull. Please help Thank you, anxiously waiting for some advice. Kathy
I am desperatly looking for a way to purchase this. The owner are thinking about rent to own but it dont look hopefull. Please help Thank you, anxiously waiting for some advice. Kathy
Hi Kathy!
Welcome to forums!
If the property is free and clear, then you can go for the option of owner finance. As you're not getting a conventional loan, owner finance will be a good option to buy the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the property is free and clear, then you can go for the option of owner finance. As you're not getting a conventional loan, owner finance will be a good option to buy the property.
Feel free to ask if you've further queries.
Sussane
purchased a mobile home with a bank auto loan. unable to keep up with payments. also the park rental fees. bank took possession, so my question is what is my responsibility from this point?
Welcome Peacemaker,
The lender will sell off the property in order to recover the debts. In case there is a deficient balance resulting from the sale of the property, then you will be liable for paying off the deficient balance.
The lender will sell off the property in order to recover the debts. In case there is a deficient balance resulting from the sale of the property, then you will be liable for paying off the deficient balance.
we own our own mobile home. we have been rebuilding it for the last 3 years. room by room. new roof, new floors, going from plywood to drywall. when we bought the house it was sitting in a commuminity. we as a family of 6 have out grown. we can't have a garage. we pay for a corner lot. ect.ect.ect. well we would like to find a piece of property here in mi prefferably in oakland county. or close to it. so we can move our mobile home and have it moved. and placed on a more permmanint foundation. i heaed only some countys will allow you to do this. How do i find this out? and how would i go about getting some kind of finance to purchase the lot, then move the house? hope some one can help me. please and ty.
Hi Terri,
You will have to contact a real estate attorney and he will let you know whether or not your state laws will allow you to move the mobile home even if you have a mortgage on it.
Thanks
You will have to contact a real estate attorney and he will let you know whether or not your state laws will allow you to move the mobile home even if you have a mortgage on it.
Thanks
my husband and I own the 1998 mobile home that my brother lives in.We would like him to purchase it but he is on a very tight budget. What kind of mortgages are there for him to apply for? The home is in a mobile park,he pays all bills, it's just a matter of finding a way for him to purchase it. Any help would greatly appreciated. Thankyou
Hi Patriciabryan,
He can apply for a mobile home loan in order to buy the property. He should contact the local lenders and apply for a mortgage. If he has the required credit score and income, then he will easily qualify for a loan.
Thanks
He can apply for a mobile home loan in order to buy the property. He should contact the local lenders and apply for a mortgage. If he has the required credit score and income, then he will easily qualify for a loan.
Thanks
I moved to PA in August 2011 and started new employment. I am looking to purchase a mobile home out here in a park for between 15,000 and 25,000 i have a credit score of about 507 last i knew are there any options I can look into. I am looking to buy in September or October this year and will have about $2000 to $3000 to put down... Is there any hope? Thank you I am 45 and really want to purchase my first home
Hey Tina,
Everything looks fine to me and you should be able to be approved for finance without a problem. Of course contact your lender and talk it over with them, communication is key!
Everything looks fine to me and you should be able to be approved for finance without a problem. Of course contact your lender and talk it over with them, communication is key!
Are we supposed to already have the title to our mobile home? We took out a mortgage in 2001 for our double wide mobile home. Shortly thereafter we received the title in the mail. I didn't think much of it at the time but I recently got to thinking that maybe it should be treated just like a vehicle and the bank should still hold it until the mortgage is paid off. What should I do or is the mortgage even legal now? Help,..we have been paying on this for 11 years now.