Refinance Mobile Homes
Generally speaking, there are a few requirements to refinance mobile homes and they are required by nearly every lender. The size of the mobile home must be a minimum of 768 square feet and it must be at least 12 to 14 feet wide. In order to refinance mobile homes, the home must be set at the home site with skirting. The site can be owned or rented, but certain restrictions may apply to rented sites. Finally, funding to refinance mobile homes is only available on homes built after 1976 and the home must be in compliance with the current Housing and Urban Development (HUD) codes and in livable condition.
Refinancing an existing loan can mean saving money in interest or saving money each month by extending your current terms. Terms range from 7 to 30 years, and the longer the term, the more you pay in interest, but the less you repay each month.
Current credit ratings play a large role in consumers’ abilities to refinance mobile homes. Poor credit will probably require a greater interest rate, shorter term, or possibly no options at all. Your credit must be in good shape with no late or missed payments reporting in the 12 months preceding a refinance application.
With proper credit, a qualified loan officer should be able to construct several different loan options for the qualified consumer. Make sure that you weigh your options in terms and rates and do not pay more in interest and closing costs than you absolutely have to. Avoid variable rates when possible and look at only programs that offer a fixed interest rate for the life of the loan, or at least for a pre-determined period of time.
Not every lender will underwrite loans to refinance mobile homes, but many will. You should contact specific lenders or your own bank to determine whether your credit and your home will qualify for a refinance. Remember that qualifying for a refinance is different than qualifying for a new purchase and the requirements will be slightly stricter. By shopping around, you will secure yourself the best deal on the refinance of your mobile home.
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