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:
Hi brandi!
Welcome to the forums!
It will be difficult to let you know the names of lenders who finance manufactured homes attached to land. You can speak to the local lenders and banks located in your area and check out if they can help you in this matter. Apart from that, you can even seek a no obligation free mortgage quote from the lenders who participate in the community discussions here and take their opinion in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
It will be difficult to let you know the names of lenders who finance manufactured homes attached to land. You can speak to the local lenders and banks located in your area and check out if they can help you in this matter. Apart from that, you can even seek a no obligation free mortgage quote from the lenders who participate in the community discussions here and take their opinion in this regard.
Feel free to ask if you've further queries.
Sussane
I am a widow but I would like to buy a mobile homein a 55pluspark with my brother. We have always rented and would like to be a homeowner. My creditscores are 679 and my
brother's is a little higher. We are on time with all our
debts but we have a lot of debt.We aquired some money fromour
parents who have passed away so we can put a good amount
down on a mobile home but can we get a loan that could help us
buuy a home but also incorpoate debt consolidation as well?
brother's is a little higher. We are on time with all our
debts but we have a lot of debt.We aquired some money fromour
parents who have passed away so we can put a good amount
down on a mobile home but can we get a loan that could help us
buuy a home but also incorpoate debt consolidation as well?
How can I apply for a loan for a mobile home and land through HUD?
Hi Malisa,
If you wish to get a mobile home loan, then you will have to contact the local mobile home loan lenders and apply for it. If you meet the required criteria, you will get the loan.
If you wish to get a mobile home loan, then you will have to contact the local mobile home loan lenders and apply for it. If you meet the required criteria, you will get the loan.
We offer manufactured home loans nationwide.
i purchased my home seven years ago. i received a mortgage which i was told was approved in error as my home is partially a mobile home and the appraser did not disclose that informaiton prior to my signing the papers. we are now trying to refinance our home and no one will give us the loan not even the current bank we deal with. we have never missed a payment and we have excellent credit can you suggest any lenders to us or what we can do in this case. shouldn't our current lender be required to refinance if they did it once already?
Hi Lori!
Welcome to the forums!
Now that the error has come into the forefront, I don't think anyone will be ready to refinance the loan. I'm sorry to say that you're basically stuck in this deal.
Feel free to ask if you have further queries.
Sussane
Welcome to the forums!
Now that the error has come into the forefront, I don't think anyone will be ready to refinance the loan. I'm sorry to say that you're basically stuck in this deal.
Feel free to ask if you have further queries.
Sussane
I bought a mobile home for cash for $125,000 in 2005. It is a 1999 double wide champion. My credit is not good but I need to get my car fixed and get home/car/homeowners insurance and would like to know how I can get money out of my home - thanks for your help.
Hi Stevensjl!
Welcome to the forums!
As your mobile home is free and clear, you can use it to get a loan. However, with a bad credit, none of the lenders will be ready to give you a loan. You should take steps to improve your credit score and then look out for loans. To know some steps to improve credit score, you can check out the given page: http://www.mortgagefit.com/credit-rating/credit-repair.html
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
As your mobile home is free and clear, you can use it to get a loan. However, with a bad credit, none of the lenders will be ready to give you a loan. You should take steps to improve your credit score and then look out for loans. To know some steps to improve credit score, you can check out the given page: http://www.mortgagefit.com/credit-rating/credit-repair.html
Feel free to ask if you've further queries.
Sussane
I went bankrupt (Ch7) in 4/09. I have a loan against my retirement plan which paid for my mobile home in full. It is worth $70000, I want $40000 to pay back my retirement plan now and that way have the ret. plan at 100% and start rebuilding credit with an actual mortgage. My credit rating is 700 - 720 and my income is $65000/yr. Help? I own the home and rent the land in a park.....
I currently own 2 acres with a 1974 singlewide that has been added on to to be 2200 sq feet. I purchased it for $75000 3 years ago and since have redone the well fenced and cross fenced it,and landscaped the yard. I have a score of 750 and have stable employment. I currently owe about $50000
Hi Guest,
Mobile homes build before 1976 hardly qualify for any kind of conventional financing. You should contact the lender offering personal loans on properties and check out if they can help you in this regard.
Thanks
Mobile homes build before 1976 hardly qualify for any kind of conventional financing. You should contact the lender offering personal loans on properties and check out if they can help you in this regard.
Thanks
7 years ago we bought a MH and land, and are now upside down in the mortgage. Our current double wide has seen batter days and we want to replace it. We have no problem paying our bills and have number crunched and we know that we can afford a new one, however our search has been halted because our mortgage covers the double wide AND land, therefore we do not own the land. Our mortgage company told us that we can not replace the DW because the mortgage is specific to that house and dealers tell us that they can't help because the land isn't technically ours. We do not live in a park or MH community. We have the money to put down on a new one but no one has a solution to our problem. Any advice would be great!
Hi Elisabeth,
The loan is on the land and the mobile home and unless you pay it off, you may not be able to get a loan. You can check out if you can qualify for a personal property loan. You will have to contact the lenders offering you personal property loans and check out with them.
The loan is on the land and the mobile home and unless you pay it off, you may not be able to get a loan. You can check out if you can qualify for a personal property loan. You will have to contact the lenders offering you personal property loans and check out with them.