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 Bamaette,
Your mobile home will be considered as a vehicle and the title will be recorded at the Department of Motor Vehicles. Once you pay off the mortgage, you will get a lien release certificate from your lender and can record it at the DMV/county recorder's office.
Thanks,
Jerry
Your mobile home will be considered as a vehicle and the title will be recorded at the Department of Motor Vehicles. Once you pay off the mortgage, you will get a lien release certificate from your lender and can record it at the DMV/county recorder's office.
Thanks,
Jerry
i am currenty purchasing on contract a home with land, but the home is part mobile home and part stick built, actually a home was basicaly built around the mobile home, you cant tell the mobile home is even there, home is on permanent block foundation, my question is how do i refinance this property from a land contract to a va loan, is it considered mobile home or stick built, thanks for any help you can give me in this matter
how many acres will va finance with the purchase of a mobile home?
how does the appraisal process work and how much down do you need
how does the appraisal process work and how much down do you need
Hi!
Welcome to forums!
To BUGGS,
Well, it will be the lender's discretion whether he would consider your property a mobile home or stick build. You should inform the lender about your situation and ask for his opinion.
To Gail,
The property appraiser will appraiser the property as per the required standards and let you know the valuation of the property. Then the VA lender will be able to let you know how much they will finance.
Sussane
Welcome to forums!
To BUGGS,
Well, it will be the lender's discretion whether he would consider your property a mobile home or stick build. You should inform the lender about your situation and ask for his opinion.
To Gail,
The property appraiser will appraiser the property as per the required standards and let you know the valuation of the property. Then the VA lender will be able to let you know how much they will finance.
Sussane
i owe about 27,000 left on my 2008 mobile wanted to refinance it cause the mortgage company i am with now keeps changing my payment amount please get back in touch with me.
[Phone number deleted as per forum rules. Thanks.]
[Phone number deleted as per forum rules. Thanks.]
Hi joseph!
Welcome to forums!
You will have to contact the other local lenders and apply for a mobile home loan refinance. Depending upon your financial and credit situation, the lender will let you know whether or not you can qualify for a mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will have to contact the other local lenders and apply for a mobile home loan refinance. Depending upon your financial and credit situation, the lender will let you know whether or not you can qualify for a mortgage.
Feel free to ask if you've further queries.
Sussane
How to find it?
Hi David,
What do you want to find out? Please explain your query in details so that experts participating here can give you their opinion.
What do you want to find out? Please explain your query in details so that experts participating here can give you their opinion.
The seller is asking 18,900. I want to offer him less then this, say 15,000. I can get a personal loan, no problem. When they hear it is for a Mobile Home they say, NO. What can I do. Where can I go to get a loan for this Mobile Home? It is in Great Shape, inside and out. Thank You Ed Randolph
Hi Randolph!
Welcome to forums!
You will have to contact lenders who mainly provide loans for mobile homes. They might help you in this process. This community has a large number of lenders. You can seek a no obligation free mortgage quote and check out if they can help you with a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You will have to contact lenders who mainly provide loans for mobile homes. They might help you in this process. This community has a large number of lenders. You can seek a no obligation free mortgage quote and check out if they can help you with a loan.
Feel free to ask if you've further queries.
Sussane
Where can I go to find information on lenders that will do a home equity line of credit on a mobile home?? It was built in '98...2000 square ft....on 1 acre of land in Texas. Land and home are paid for and I have excellent credit. Thanks for any help!!
Hi jlemons,
You will have to contact the local lenders and check out if they offer loans on mobile homes. Not all lenders lend money for mobile homes. This community has large number of lenders. You can seek a no obligation free mortgage quote from them and check out what type of rates and terms you may qualify for.
Thanks
You will have to contact the local lenders and check out if they offer loans on mobile homes. Not all lenders lend money for mobile homes. This community has large number of lenders. You can seek a no obligation free mortgage quote from them and check out what type of rates and terms you may qualify for.
Thanks
i was wanting to refinance my mobile home but can't find anyone to do it because the land is in my dad's name. we also filed bankruptcy 3 years ago but reaffirmed our car and trailor. my credit score is 749 and my husband is a about 710. do you know of a place that could help me??
Do they make a loan for purchasing a mobile home and putting it on my parents' land which is still owned by the bank? My parents own a poultry farm that is not paid off for 9 more years. My husband and I want to buy a mobile home, put it on their land, and then sell it to them in 9 years so they can house workers in it. We got aproved for 3.75% interest on a house loan. Do you know how much more a mobile home loan interest would be? Thanks!!