Manufactured Home Second Mortgages
Consolidation Loans

From LoveToKnow Mortgage

About Second Mortgage Consolidation Loans for Manufactured Homes

Although it is very common for individuals who have equity in their homes to seek second mortgages for the purpose of making major purchases or consolidating high interest rate debt into a more affordable loan product, manufactured home second mortgages consolidation loans may be more difficult to secure than standard second mortgage loans.

Does your mobile home qualify for a second mortgage?

Requirements, Risks, and Precautions

Some lenders do offer second mortgage consolidation loans on manufactured homes, but it isn't always easy to find this type of loan for these types of structures. Part of the difficulty is that lending institutions consider modular or manufactured homes greater risks than traditional single family housing. Be aware, however, that you may also encounter higher interest rates on second mortgage loans for pre-fabricated housing.

In order to secure additional loan products on manufactured housing there may be certain requirements that need to be met or restrictions, such as:

  • The home must be located on land you own rather than in a mobile home park or rented lot.
  • The home is your primary or secondary residence, not a rental or investment property.
  • The home may need to be immobilized and on a permanent foundation base.
  • The home may need to have been built after a certain year to obtain the financing.

Resources

HUD -- the US Department of Housing and Urban Development, has complete listing of authorized lenders who offer subprime and manufactured housing financing. MH village, a member of the Better Business Bureau, also offers various lending and other resources to those with manufactured homes. Remember to carefully research any company you are are considering for you loan financing before going forward.

A complete refinance is another option if you are not able to find a second mortgage for your manufactured home. A cash out refinance can often provide funds needed to consolidate bills into your mortgage payment.

Manufactured Home Loan

There are many lenders specializing in assisting consumers get the funding they need to purchase both manufactured homes and land on which to place the structure. Some manufactured home loans have terms similar to those for traditional homes, requiring as little as five percent down and allowing borrowers to finance their purchase for up to thirty years.

When you start shopping for a loan you will need to have a good idea about the type of manufactured home and lot you are planning to purchase. Lenders will not be able to direct you toward a program that meets your needs without this information. Some lenders offer chattel loans that can be used to purchase the home itself, but not land. Other loans can be used only for homes on improved lots in manufactured home developments. Some can be used for a combination of a manufactured home and any type of land.

Title I Loans for the purchase of manufactured homes and/or developed lots are available through approved lenders. Title I loans are not government-issued loan programs but are insured against default by the Federal Housing Authority (FHA). There are strict loan limits and the manufactured home must be the borrower’s primary residence. Additionally, the home must meet the National Manufactured Home Construction and Safety Standards.

Lenders Offering Manufactured Home Loans Include:

Get Quotes

When you need to find financing options for a manufactured home it can be beneficial to utilize one of the online mortgage quote services or search engines. This can be a great way to identify the going rate for interest rates. You can fill out an online application and receive quotes from lenders who are interested in helping with your manufactured home financing needs.

Research Options Before Deciding

Shopping around for the best rate is important, but it’s also necessary to check out the credentials of companies with whom you are thinking of working. Whether you are looking for a loan to purchase a manufactured home, second mortgages, consolidation loans, or another type of home loan product, it’s important to select a reputable lender.

If you were satisfied with service you received from a mortgage lender in the past you may want to return to the same organization. If you don’t already have a good relationship with a lending company, it’s advisable to ask trusted personal and professional contacts to refer you to companies with whom they have had positive experiences in the past. It is also a good idea to check with your local Better Business Bureau before selecting a lender.

You can verify that lenders and loan officers are properly licensed by communicating with the licensing bureau that regulates mortgage lending practices in your state. You may avoid problems down the road when you take steps to make sure you are choosing the right lender before you sign a loan agreement..

Retrieved from "http://mortgage.lovetoknow.com/Manufactured_Home_Second_Mortgages_Consolidation_Loans"

 


Comments

Naomi, contact some lenders to find out if anyone can help you with your unique situation. With the issues with bankruptcy, however, you may not be able to find a much lower interest rate than what you have now. Good luck!

-- Contributed by: Tamsen Butler

My husband and I are interested in refinancing our owner financed, 2002 double-wide mobile home, on 1.92 acres of land in rural North Carolina. However, both he and I went through a Chapter 7, (myself), and Chapter 13, (husband) in 2006. Mine was discharged in 2006; however, he still makes current monthly payments toward his Chapter 13. This is why we are paying a 8.25% interest rate. We would very much like to lower our payments during this economical crisis. If you or anyone else can help us, or if you need anymore information, please feel free to contact me. Thank you for your time and consideration to this matter.


-- Contributed by: Naomi Durham

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