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 married and my husband owned a home when we got married. I would like to purchase a mobile home w/addition with perm foundation, on two lots against the wildlife reserve in Paris, TN. for a vacation/second home in my name. Together we make over $100,000 per yr. My income is $40,000+ per year. I have no debts but my credit is fair. I was approved for 100% financing with no down payment for a home, however, mobile homes are just not accepted for financing. This mobile home with the two nice fenced in lots that is sits on I can purchase for $30,000. It is in a Lake neighborhood and worth well more than what I can get it for. The land itself probably worth that without the mobile home. What is my chance of getting a loan for this purchase, and how much would I probably have to pay down?
Hi Sandi,
For conventional loan, you will have to pay around 20% down. Getting a loan will depend upon your income, credit score, employment status, etc.
Thanks,
Jerry
For conventional loan, you will have to pay around 20% down. Getting a loan will depend upon your income, credit score, employment status, etc.
Thanks,
Jerry
Sandi-The home would have to be your primary residence - there are not any manufactured home loans for homes initially intended for a 2nd home or investment property. Also, most lenders will not go below 50K on a manufactured home loan. Try looking for a personal loan for this home.
Hi - I'm 21 with $30,000 to put down on a newer mobile home. My credit isn't great at all and I make about 1600 a month. What would be the best loan for me? My mom said she'd help with the loan, but someone told me ih can only be the people living on the property.
is it possible to get a loan for 40-60 acres with a mobil home on it in one loan with a large down payment?
Hi Guest!
Welcome to forums!
It will be the lender's discretion whether or not you will qualify for a loan for 40-60 acres of land with a mobile home on it.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be the lender's discretion whether or not you will qualify for a loan for 40-60 acres of land with a mobile home on it.
Feel free to ask if you've further queries.
Sussane
I am trying to refinance a loan I have on a cabin in Westcliffe Co. I have a little less than $20,000.00 left on the loan and it is going to baloon in about 90 days.I cant find anyone that can help.Please let me know if you can.I know its not a mobile home but I know that it is not easy to get a loan for them so I thought you might be able to help me? Thanks Gordon
I own my 86' Parkway doublewide on a permanant foundation with .47 acres of land. Paid for free and clear no liens or deliquent taxes. My credit score is 590, not to good. I went to my local bank to find out about borrowing money against it and was not approved. where can I find a lender that can help me?
home is being sold for 56,000. on lease land
home is being sold for 56,000. on lease land
hi gordon,
if you have equity in your property, then you should be able to refinance the loan. you should contact the lender and try to refinance the loan. if you meet the required criteria, then you will be able to refinance.
hi trent,
you have poor credit score. in todamarket, none of the lenders will offer you a loan for such low credit scores. you should improve your score and then look out for loans.
hi kathie,
please post your query in details. your query is not clear.
if you have equity in your property, then you should be able to refinance the loan. you should contact the lender and try to refinance the loan. if you meet the required criteria, then you will be able to refinance.
hi trent,
you have poor credit score. in todamarket, none of the lenders will offer you a loan for such low credit scores. you should improve your score and then look out for loans.
hi kathie,
please post your query in details. your query is not clear.
Trent how much do you think the property is worth? Click on my profile to contact our office, we lend on manufactured homes on a permanent foundation nationwide. We go down to a 600 credit score, so we could run a credit a simulator to get your scores up and hopefully get out the cash that you require.
can I get a reverse motgage on a mobil home in california :?:
Rody, is the home in CA on land that you own or rent? Do you have significant equity in the property?