Low Down Payment Loan Mobile Home

Mobile Home Loans

There are two common types of mobile home loans.

• Real property mobile home loans include both the home and the land on which the home rests. This type of loan is like any other mortgage loan, having similar requirements for initial down payments as any other conventional mortgage loan.

• Personal property mobile home loans are only for the mobile home, and do not include the land. These types of loans are similar to other personal loans, but may still have down payment requirements depending on the lender.

Other mobile home loans exist, such as construction financing, but real property loans and personal property loans are the most common when financing the purchase of a mobile home.

Find Low Down Payment Loan Mobile Home

The best place to begin your search for a low down payment loan mobile home is with the financial institutions with which you already do business. This should include:

• Lenders who currently service any mortgage loans you already have.
• The bank or credit union where you keep your checking or savings accounts.
• Financial institutions where you have other loans or credit cards.

Sometimes lenders offer lower interest rates and other special considerations to existing customers, and this is why you want to start with lenders you already have a financial relationship with. You should keep in mind, however, that your search should not exclude all other lenders since your existing lender may not offer the lowest interest rate or best terms.

Not all lenders offer loans for manufactured homes, so when calling to inquire about interest rates and down payment requirements be sure to specify that the loan will be for a mobile home.

Some lenders offering mobile home loans with low down payment requirements include:

• Wachovia
• 21st Mortgage Corporation
• Bank of America

Down Payment Requirements

Down payment requirements for mobile homes vary from lender to lender. The amount of money you will have to put down on a mobile home can depend on several factors. For example, a low credit score may result in the lender requiring a higher down payment in order to secure an approval.

Consequences of Low Down Payments

A low down payment on a mobile home may come with financial consequences. A low down payment – or no down payment – may have a higher interest rate than a mobile home loan with a twenty percent down payment. You may also encounter additional monthly charges such as Private Mortgage Insurance (PMI). Also remember that the more money you put down on a mobile home, the less your monthly mortgage payment will be.

Advantage of Low Down Payments

Some borrowers do not have the funds available for a substantial down payment, and in these instances a low down payment might be the only way to buy a mobile home. Many borrowers prefer to use available fund to pay closing costs instead of having them rolled into the loan, and some borrowers simply want to enter into homeownership with some money in the bank.

Mobile Home Down Payment Assistance

Contrary to popular belief, both FHA and the VA offer programs for mobile home loans. Eligibility requirements for these programs vary. You can find out more about these programs by visiting the websites for each organization:

• FHA offers valuable information regarding various mobile home mortgage loan guarantees. Information is available online, over the phone, or through a local housing office.
• The VA offersmobile home mortgage guarantees in addition to no down payment requirements. Visit the VA website for eligibility requirements.

Mobile homes located in rural areas might be eligible for down payment assistance programs through Rural Housing Services.