Mobile Home Loan: How To Get Approved For One In Today’s Economic Times
Many hopeful homeowners wonder how to get a mobile home loan. So how does one get a loan for a mobile home nowadays ? The simple answer is, “with tremendous difficulty.” The bottom line is, it really is not really easy to get a loan for a mobile home in today’s hard financial market conditions.
That being said, it’s definitely not impossible. If you understand what you’re doing. The following are five “secrets” that will guide you.
1. Know What You Are Funding
Buyers regularly use manufactured home, mobile home, and modular home without knowing the difference. Yet they are not the same thing.
Well, in reality, for our purposes in this article, a manufactured home and a mobile home will be referred as the same. Manufactured homes were before now referred to as mobile homes, are constructed in a assembly plant, have a non-removeable metal chassis, and are ordinarily delivered on their own removeable wheels. Once they arrive they are placed on either a temporary or permanent foundation.
A modular home is very similar to a mobile home in that it is built in a manufacturing facility, but it does not have a chassis or wheels. In fact, it is assembled in sections, and those sections are delivered to the construction site where they are assembled on a permanent foundation.
Why is this significant? Because a bank, credit union or financing institution is going to look at a manufactured home in a different way than a modular home. They will definitely consider a manufactured home as far more high risk, because it can be hauled away.
2. Know Where To Locate A Lender
There are only a few of national financial institutions that will still give a bank loan for a mobile home. There are a a small number of regional lenders still offering mobile home mortgages, and it is conceivable your individual bank might finance you if they are familiar with you.
3. Figure Out What Kind Of Loan You Need
For a mobile home, you have 3 basic loans available. A conforming loan is the most challenging to get, with the lowest annual percentage rates, but your house must be placed on a permanent foundation on property you own. A non-conforming loan is less demanding to get by combining your property and house into the financing. A chattel loan is obtainable for home owners who do not actually own the land.
4. The Larger Your Down Payment The Better
More than in traditional or modular home financing, your down payment definitely makes a significant impact in financing your mobile home. Mortgage companies want to see you carry an investment in your new home. Basically, the more YOU have to lose, the better they like it.
5. Manufactured Home Community In House Financing
One more source of funding to research is in-house *mobile home financing* available from mobile home communities themselves. Whenever a mobile home community is the owner of a house in its park it is attempting to sell off, there is much less risk involved in selling the property. In the event you have not very good credit, or an unsteady work history, the seller just isn’t that apprehensive. One mobile home park owner I interviewed for this review said his only requirement is that the home buyer have “about $500 as a down payment and is breathing.”
These are several of the essential points to be familiar with before you attempt to secure a mobile home loan. For more complete tips, including info on how to profitably use a pre-approved mortgage, other resources and an in-house financing program offered in several states, visit us at mobile home loan.
That being said, it’s definitely not impossible. If you understand what you’re doing. The following are five “secrets” that will guide you.
1. Know What You Are Funding
Buyers regularly use manufactured home, mobile home, and modular home without knowing the difference. Yet they are not the same thing.
Well, in reality, for our purposes in this article, a manufactured home and a mobile home will be referred as the same. Manufactured homes were before now referred to as mobile homes, are constructed in a assembly plant, have a non-removeable metal chassis, and are ordinarily delivered on their own removeable wheels. Once they arrive they are placed on either a temporary or permanent foundation.
A modular home is very similar to a mobile home in that it is built in a manufacturing facility, but it does not have a chassis or wheels. In fact, it is assembled in sections, and those sections are delivered to the construction site where they are assembled on a permanent foundation.
Why is this significant? Because a bank, credit union or financing institution is going to look at a manufactured home in a different way than a modular home. They will definitely consider a manufactured home as far more high risk, because it can be hauled away.
2. Know Where To Locate A Lender
There are only a few of national financial institutions that will still give a bank loan for a mobile home. There are a a small number of regional lenders still offering mobile home mortgages, and it is conceivable your individual bank might finance you if they are familiar with you.
3. Figure Out What Kind Of Loan You Need
For a mobile home, you have 3 basic loans available. A conforming loan is the most challenging to get, with the lowest annual percentage rates, but your house must be placed on a permanent foundation on property you own. A non-conforming loan is less demanding to get by combining your property and house into the financing. A chattel loan is obtainable for home owners who do not actually own the land.
4. The Larger Your Down Payment The Better
More than in traditional or modular home financing, your down payment definitely makes a significant impact in financing your mobile home. Mortgage companies want to see you carry an investment in your new home. Basically, the more YOU have to lose, the better they like it.
5. Manufactured Home Community In House Financing
One more source of funding to research is in-house *mobile home financing* available from mobile home communities themselves. Whenever a mobile home community is the owner of a house in its park it is attempting to sell off, there is much less risk involved in selling the property. In the event you have not very good credit, or an unsteady work history, the seller just isn’t that apprehensive. One mobile home park owner I interviewed for this review said his only requirement is that the home buyer have “about $500 as a down payment and is breathing.”
These are several of the essential points to be familiar with before you attempt to secure a mobile home loan. For more complete tips, including info on how to profitably use a pre-approved mortgage, other resources and an in-house financing program offered in several states, visit us at mobile home loan.
Filed under News by on May 6th, 2011. 