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:
Welcome Sharon,
You may get a mobile home loan. Interest rates on mobile home loans are not different as such. You will have to contact the local mobile home loan lenders and take their opinion in this regard.
You may get a mobile home loan. Interest rates on mobile home loans are not different as such. You will have to contact the local mobile home loan lenders and take their opinion in this regard.
What mortgage companies for bad credit are they fir mobile homes for collateral of land deeds
Welcome elhc,
You can use a land as a collateral in order to get a loan. However, with a bad credit you won't be able to qualify for any kind of credit. You will have to improve your credit and then apply for a loan. To know all about improving your scores, check out: http://www.mortgagefit.com/credit-rating/credit-repair.html .
You can use a land as a collateral in order to get a loan. However, with a bad credit you won't be able to qualify for any kind of credit. You will have to improve your credit and then apply for a loan. To know all about improving your scores, check out: http://www.mortgagefit.com/credit-rating/credit-repair.html .
i am 3 1/2 years in to my banckruptcy, i own my land and mobil home but need improvement how do i get a loan to do so while in bankruptcy
Hi darrell,
If you're in bankruptcy, then you won't be able to qualify for a loan now. You will have to for 2-4 years after your bankruptcy discharge and then qualify for a mortgage.
Thanks
If you're in bankruptcy, then you won't be able to qualify for a loan now. You will have to for 2-4 years after your bankruptcy discharge and then qualify for a mortgage.
Thanks
Are you in CH 13 or Ch 7?
I own a 1990 mobile home and is located in a park. my cs is above 720 is there any way to get a improvement loan?
Hi ref,
With the credit scores that you have, you will be able to qualify for a home improvement loan. However, you will have to meet all the other required criteria of the lender.
Thanks
With the credit scores that you have, you will be able to qualify for a home improvement loan. However, you will have to meet all the other required criteria of the lender.
Thanks
Could you please give me some names of lenders, I thank you in advance.
hi, our credit score is 570 my husband has been on his job for 9 yrs.we own our home it is a 1999 32x80 on 8 acres of land we are looking to borrow 45,000 to pay off some bills and do some updates to our home can you help us. 6015904778
Hi marcus!
Welcome to forums!
With a credit score of 570, it will be very difficult for you to qualify for a loan. I will suggest you to take some steps in order to improve your credit score. Take a look at the given page for the same: http://www.mortgagefit.com/credit-rating/credit-repair.html
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
With a credit score of 570, it will be very difficult for you to qualify for a loan. I will suggest you to take some steps in order to improve your credit score. Take a look at the given page for the same: http://www.mortgagefit.com/credit-rating/credit-repair.html
Feel free to ask if you've further queries.
Sussane
ref313, I lwork for a lender that lends on manufactured homes nationwide. Click on my profile to get in touch.
my husband retired from the navy 16 years ago and we purchased a mobile home and land. we wanted to see if its possible to get it refinanced through va. at the time our credit wasn't the best so we got it on a 12% interest. a few years later we refinanced and lowered the interest to 9% and then the company we refinanced with went under and we were put back with the original company. we have paid on time for the past 10 yrs with no problems and i asked about a year ago if they could lower the interest rate and was told no it wasn't possible at this time. we want to keep the home and have done a lot of improvements on it but we seem to get the run around from people who claim to be able to get it refinanced. my husband has been with the same company since hes retired from the navy 16 years ago and we have no debt other then the home our vehicals are paid for so i'm not sure why we can't get refinanced. the excuse we are given is usually that its because its a mobile home and lenders are hard to find who will refinance it. any suggestions would be greatly appreciated. thank you!
Very few if any lenders are offering VA refinancing for manufactured/mobile homes right now. We offer refinancing for these properties if you have equity in the property, rates are 3.75% -4.5% depending on credit, assets, income and location of the property.