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:
How can I finance purchase of 1996 single wide on 4 acres?
I also agree with you that the loan must be taken in order to purchase or refinance only a manufactured home with the lot/land being owned by the borrower, the home and the lot on which it is situated, or only the lot on which the mobile home (already owned by the borrower) will be installed.
I have a chance to buy a double-wide on a concrete pad, with land. My credit score is 620 but my husband has a bankrupcy 3 years ago. It has been dismissed. We have a co-signer available. We are both self-employeed. We do have a large checking account to ensure payment.
Hi heather and chris,
You may apply for a FHA loan in order to buy that property. However, the lender will want verification of your income and you may have to show your tax returns. If you can't prove two years of stable income, it will be difficult for you to qualify for a loan.
You may apply for a FHA loan in order to buy that property. However, the lender will want verification of your income and you may have to show your tax returns. If you can't prove two years of stable income, it will be difficult for you to qualify for a loan.
can I refinance my land and mh doublewide on permenant foundation I have 5 1/2 acres All of this Is paid for I just want to fix my land and home up and upgrade on things I want to borrow 65.000
Hi mary,
As far as I know, as your property is free and clear, you will be able to take out a mortgage on it and make the necessary improvements. You should contact the local lenders and start applying for a mortgage.
As far as I know, as your property is free and clear, you will be able to take out a mortgage on it and make the necessary improvements. You should contact the local lenders and start applying for a mortgage.
I have an offer on my house, however the buyer needs to finance the home. They have a foreclosure in the the last 2 1/2 years, otherwise their credit is good, and their income/expense ratio is very good. Do you know of any mortgage companies that offer loan products for manufactured homes in a park, for people with this kind of credit history?
Welcome Rod,
The buyer needs to contact the local mobile home loan lenders and check out whether or not your buyer can qualify for a loan. Apart from that, your buyer can even contact the private lenders and take his help in this regard.
The buyer needs to contact the local mobile home loan lenders and check out whether or not your buyer can qualify for a loan. Apart from that, your buyer can even contact the private lenders and take his help in this regard.
I want to pay off my mobile home. It is on a rented lot.And after I can get it paid off I would like to do some home improvements on it. It is a 1972 single wide in fairly good condition. But does need new upgraded windows and carpeting and a new hotwater tank. How would I go about getting a loan? The owner is carrying my contract> I pay him the lot and home payment. But want to pay him off and fix up my home. I have a good job. But my credit is score is not good. But like I said I have a great job and make around 40,000 a year. I have been hear 2 yrs in feb 2013. Please if anyone is willing to help me I will be so happy. I just want to pay this guy off.
Hi Tami,
It should be noted here that mobiles homes which are built prior to 1976 rarely qualify for mortgage. So, I don't think you will be able to get a mortgage on your property. You can try out for personal property loans in order to go for home improvements.
Thanks,
Jerry
It should be noted here that mobiles homes which are built prior to 1976 rarely qualify for mortgage. So, I don't think you will be able to get a mortgage on your property. You can try out for personal property loans in order to go for home improvements.
Thanks,
Jerry
My husband and I are looking to buy a manufactured home to put on on own land. Our credit scores are low, his 555 mine 625. We make about 70000 a year. Is there any hope for us? Im begining to feel like there isnt.
Welcome Marlene,
You can contact a local FHA lender and apply for a loan. With a 625 score, you will be able to qualify for a FHA loan. However, your husband may not be able to qualify for a loan with his scores.
You can contact a local FHA lender and apply for a loan. With a 625 score, you will be able to qualify for a FHA loan. However, your husband may not be able to qualify for a loan with his scores.
Marlene we lend on manufactured homes. If you cannot qualify without your husbands income, we can always run a credit simulator to improve his scores.
Dont forget:
Americash is known as one of the Nations top originators of residential mortgages. Americash pursues cost effective advertising, primarily through the internet, and passes the savings through to the consumer in the form of lower rates.
Americash is known as one of the Nations top originators of residential mortgages. Americash pursues cost effective advertising, primarily through the internet, and passes the savings through to the consumer in the form of lower rates.