Mobile Homes Loans
If you are considering purchasing a mobile home and do not have the available funds, then mobile homes loans are available from a variety of sources for those who qualify. Mobile homes loans are similar to other mortgage loans, but carry different terms, requirements and qualifications. The best place to start is either through a licensed dealer or your own private bank.
Just as with other loans, mobile homes loans require a certain credit standing. If you have very poor credit history, you might have difficulty securing a loan or will have to pay a considerably higher interest rate. Discuss matters with your lender and learn what can be done if your situation is difficult.
Most lenders will not underwrite mobile homes loans on used manufactured homes built before 1977. The terms for a loan on a new mobile home cannot exceed 20 years unless you are purchasing the home and a lot simultaneously, in which case the term can be extended to 25 years. The terms for a used mobile home cannot exceed 15 years.
The interest rate you will be charged on mobile homes loans will vary with the year and condition of the home as well as the market value for your area. Your credit score will also have an impact on the interest rate you are charged. Generally, the rate is fixed and your mobile home becomes collateral, making it subject to repossession if you default on the loan.
Unlike traditional home loans, the fees associated with your lot rental, if applicable, cannot be escrowed. As long as you are timely with your payments, you are free to move your mobile home to any lot you choose. If you are acquiring a loan to finance a lot and a home, certain other conditions apply.
Mobile homes loans are generally subject to certain requirements. You may be required to remove the hitch and wheels and install a skirting and installation will have to be on a concrete pad and subject to local or state laws as well.
As with other types of loans, mobile homes loans are subject to appraisal of the property you wish to buy. You will be required to provide information about the intended location as well as a description of the home. In most cases, there is a maximum amount that will be lent to purchase a mobile home. The amount will depend on whether you are buying new or used and certain loans may top out at around $46,000 to $48,000. Be sure you receive a fair appraisal of your property before signing the loan. Other requirements such as insurance and lot rental agreements are subject to lender policy.
People with fair to excellent credit should have no problem acquiring a loan. You will probably find that there are several different types of mobile homes loans to suit your needs. Always feel free to comparison shop your loan just as you would your purchase.
|Homes For Sale and Financing||Home Style Types||Home Construction|