Written By: Dorthy Parker
If you want a home and do not want a “site built” house due to cost considerations, mobile home loans are the best option for you. Mobile homes are custom built homes which are built in factories and transported to the site where they are fixed on a permanent foundation. Mobile home loans are much easier to obtain and such homes cost much less as compared to other traditional homes. Mobile home loans are of two types:
• Mortgage loans
• Property loans
Mobile home mortgage loan
If you have set your mobile home on a fixed foundation you can ask for a mobile loan on both the land and the mobile home. Both the cost of the home as well as the repairs, if any, are covered by the Mobile home mortgage loan. The actual value of the loan depends a lot upon the actual value of the mobile home.
Mobile Home loans are offered by credit unions, mortgage companies, banks, lenders, and local banks for purchase or refinance. There are some hidden charges, like a credit report fee, loan application fee, origination fee, or doc preparation fee etc. Before applying for a loan it is prudent to get an estimate from a lender about these hidden charges. Learn about the terms and conditions to qualify for the mobile home loans.
Personal Property loan
This type of mobile home loan is meant for purchase of mobile homes which are fixed on a rented piece of land. Personal property loan can be obtained by retailers who sell mobile loans. This is meant for purchase of homes on a rented lot as in mobile home parks. A Personal property loan is offered by retailers who sell mobile homes. When you apply for a loan you will be asked to:
Make a down payment of 10% of the purchase price for a period varying from 10- to 30 years according to the terms of your loan. If you require improving the land around your Mobile home, like walkways’, Garages etc you can ask for a higher debt ratio and use the surplus money for your needs. If you already have a mobile home and need funds to improve upon it you can go for Title (I) loan. The maximum limit of this loan is $7500 and will be treated as a personal loan.
You are eligible for a mobile home loan if the conditions given below are fulfilled:
• Foundation requirements: The house should be built after 1976
• The HUD code requirements should be followed
• Ownership Rights: You should have absolute right over the site
• Credit Score: You must have a credit score of 680 or above
• Down payment: You need to make a down payment of 10% of the actual loan amount
RB- Mobile Home Loans are meant for those people who cannot afford a traditional home.