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:
Good to note that!! :)
i need loan for mobile home and i dont know have fundation or not the mobile home is big 60l x 24 w the cost is for 20.000 dls.
Hi maria,
Unless the mobile home has foundation, it will be difficult for you to qualify for any kind of loan. Nevertheless, you can contact the local mobile home loan lenders and check out if they will help you with a loan.
Thanks
Unless the mobile home has foundation, it will be difficult for you to qualify for any kind of loan. Nevertheless, you can contact the local mobile home loan lenders and check out if they will help you with a loan.
Thanks
i want to keep my current mobile home for my son and buy a new one for my on fha title 1 can i use the current home as a trade in on the new one that then buy it back from the dealer
Hi charlieh,
You can use your current home as a collateral in order to get a new loan. You won't have to buy back the property from the dealer. Rather you will have to pay off the loan get a lien release certificate from your lender.
You can use your current home as a collateral in order to get a new loan. You won't have to buy back the property from the dealer. Rather you will have to pay off the loan get a lien release certificate from your lender.
I want to purchase a mobile home with property who will finance this i cant seem to find anyone who dose this
Welcome mikesag,
You will have to contact the local mobile home loan lenders and take his opinion in this regard. He will look into your financial and credit situation and let you know whether or not you will be able to qualify for a loan.
You will have to contact the local mobile home loan lenders and take his opinion in this regard. He will look into your financial and credit situation and let you know whether or not you will be able to qualify for a loan.
I have been pre approved for a conventional home mortgage from Wells Fargo but can't find financing for a manufactured home, do you have any resources, my BK was discharged in 2010, my present credit scores range from 601 to 670 since reestablishing credit.
Hi busche,
What type of bankruptcy did you file? If you filed Chapter 7, and as 2 years has passed you may qualify for a FHA loan with the credit scores that you have mentioned. You can contact the local FHA lenders and check out what they have to say in this regard.
What type of bankruptcy did you file? If you filed Chapter 7, and as 2 years has passed you may qualify for a FHA loan with the credit scores that you have mentioned. You can contact the local FHA lenders and check out what they have to say in this regard.
i want to find out if i qualify for a loan
Welcome m bove,
You will have to contact the local mobile home loan lenders and check out whether or not you will be able to get a loan. However, in order to get a loan, you will have to meet all the required criteria of the lender.
You will have to contact the local mobile home loan lenders and check out whether or not you will be able to get a loan. However, in order to get a loan, you will have to meet all the required criteria of the lender.
i am wanting to purchase a manufactured home in a mobile home park. the ones i am looking at are double wide homes. i have been at my job for over 2 years. i am a single parent of two children. i have a chapter 7 bankruptcy back in 2008. i have no outstanding loans but my credit score isn't great anymore, i think it is about 580-600 right now. i am wanting to get preapproved from somewhere, is this a possibility? i would also like an idea of how much money i will need to put down because i don't have alot to contribute to a down payment. :)
Hi, I own the land outright and mobile home, however the mobile home on the land is breaking down and costing a bit on repairs from time to time, I have no current bill and have been working for the same company for 11 yrs now, I am looking to replace the mobile home on site. My bank states they do not do mobile home loans. I have looked at some nice new mobile homes in vermont called camelot homes. What r my options? Any info would help. Thank You Bill Mixon
Hi bill!
Welcome to forums!
You will have to look out for mobile home loan lenders in order to get qualified for a mobile home loan. In case you dot find any such lender, then you will have to contact the private lenders who may give loans for such properties.
Feel free to ask if yove further queries.
Sussane
Welcome to forums!
You will have to look out for mobile home loan lenders in order to get qualified for a mobile home loan. In case you dot find any such lender, then you will have to contact the private lenders who may give loans for such properties.
Feel free to ask if yove further queries.
Sussane