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:
looking to apply for a mobile home mortgage loan. aprox price of home 50,000. land ..not sure yet. will be put on part of my father in laws land..how would this work? in our area there has to be a 3 acre plot. we havent discussed price with him yet on the land. we would..if we get the land..put the home on a permanent foundation. i have good credit history now..not so sure of my husbands
Welcome samiam,
You will have to get in touch with the local lenders and apply for a mobile home mortgage loan. The lender will look into your complete financial situation and will let you know whether or not you will get a loan.
You will have to get in touch with the local lenders and apply for a mobile home mortgage loan. The lender will look into your complete financial situation and will let you know whether or not you will get a loan.
I would like to buy a mobil home used. I am on disability so my income is small. My credit rateing is 700 but a have a judgement that is on my credit and I'm not sure if i can get approved with a small income and the judgement.
Hello,
I am trying to find a company that will refi my current home/land mortgage but it is seeming like it is an impossible task. I have a co-buyer on the loan as well. I owe $67,000 and have never been late with any payments, both credit scores are above 700. can anyone lead me in the right direction? The home is 22years old but has a new roof, walls, floors, and windows.
I am trying to find a company that will refi my current home/land mortgage but it is seeming like it is an impossible task. I have a co-buyer on the loan as well. I owe $67,000 and have never been late with any payments, both credit scores are above 700. can anyone lead me in the right direction? The home is 22years old but has a new roof, walls, floors, and windows.
Hi Adonis,
I have been told that because my loan is the land and the mortgage in one that they cannot refi it because of the Land being on the mortgage. I dont completely understand why it would matter but this is what they told me. I am just trying to lower my interest amount as my house is under $40,000.
I have been told that because my loan is the land and the mortgage in one that they cannot refi it because of the Land being on the mortgage. I dont completely understand why it would matter but this is what they told me. I am just trying to lower my interest amount as my house is under $40,000.
Hi Jamester,
You should get in touch with those lenders who will offer to provide you with a loan on both the house and the land. This community has a large number of lenders. You can seek a no obligation free mortgage quote from the lenders who participate in the community discussions here and check out if they can help you.
Thanks
You should get in touch with those lenders who will offer to provide you with a loan on both the house and the land. This community has a large number of lenders. You can seek a no obligation free mortgage quote from the lenders who participate in the community discussions here and check out if they can help you.
Thanks
I tried to refinance a loan on my mobile home. my balance is $74000, home now worth $122-144,000. my current loan is 12.5%, interest only, have paid monthly since 2004. home built 2002. I will lose it if I can't refinance. Payment now is $749mo. I only earn $1040 soc sec, + $1320 mo not on taxes (self employed). credit score is 737.
Hope U can help. Home is on rented mobile park, not perm foundation.
Hope U can help. Home is on rented mobile park, not perm foundation.
Hi mollyb,
You can contact the local lenders and apply for a refinance. But as mobile homes lose value quickly, lenders normally avoid refinancing such loans.
You can contact the local lenders and apply for a refinance. But as mobile homes lose value quickly, lenders normally avoid refinancing such loans.
Hi there folks, need some input on a single wide. The credit union doesn't finance them. But will a VA loan be appropriate? :?: The single wide was built in 2000, on permanent foundation( which means axels removed and secured on the ground, on concrete pad), on over 1 acre land, well on the property,many extras. Huge garage .
Thank you in advance for any advice.
Thank you in advance for any advice.
I have d credit and was wondering how to get in touch with the lenders that may be able to help me to get a mobile home??
Hi bostanmotan,
A query similar to yours has been answered in the given page: http://www.mortgagefit.com/Mortgage-problems/The-credit-union-will-not-finance-the-single-wides-will-a-VA-loan-be-possible-to-buy-the-single-wide-that-is-on-permanent-fundation.html . Please take a look at it. I hope it will help you.
Hi Patrick,
With a bad credit, you won't be able to get a mortgage for any kind of homes. You should improve your scores and then look out for a loan. You can check out the given page for the same: http://www.mortgagefit.com/credit-rating/credit-repair.html .
Thanks
A query similar to yours has been answered in the given page: http://www.mortgagefit.com/Mortgage-problems/The-credit-union-will-not-finance-the-single-wides-will-a-VA-loan-be-possible-to-buy-the-single-wide-that-is-on-permanent-fundation.html . Please take a look at it. I hope it will help you.
Hi Patrick,
With a bad credit, you won't be able to get a mortgage for any kind of homes. You should improve your scores and then look out for a loan. You can check out the given page for the same: http://www.mortgagefit.com/credit-rating/credit-repair.html .
Thanks
Hi anonymous!
Welcome to forums!
As far as I can understand, you have equity in your property. In such a situation, if you meet all the other required criteria of the lender, then you will be able to refinance the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I can understand, you have equity in your property. In such a situation, if you meet all the other required criteria of the lender, then you will be able to refinance the mortgage.
Feel free to ask if you've further queries.
Sussane
I want to get a mobil loan. I have two children, and my credit is poor. I have never owned a house, or had a credit card. I have two children. I'm wondering if i could get a loan for a mobil home on a lot.