Mobile Home Financing

About Mobile Home Financing

When it comes to financing a mobile home, loans are available but rules can be stringent. In most cases, you will be required to come up with a down payment. It may be as little as 5%, but it could be as high as 20% depending on your lender and your loan terms. Interest rates may also be slightly higher than other mortgages, depending on the lender and the type of loan that you get.

Though some lenders won’t finance mobile home purchases, others are more than willing to give out cash for these purchases. If you have a difficult time finding financing at first, don’t give up. There are special loans out there designed specifically for mobile homes; you simply need to find them.

Types of Mobile Home Financing

When looking for mobile home financing, you have several different loan options that you can choose from:

Title I Loans

Under the Title I program, lenders provide mobile home loans that are guaranteed by FHA (Federal Housing Administration). As with any other type of financing, approval is based on the borrower’s credit history and ability to make monthly mortgage payments.

Title I loans are meant to provide financing for the purchase of a mobile home and/or the purchase or development of a mobile home lot. The current maximum loan amounts are:

• Mobile home - $48, 600
• Mobile home lot - $16, 200
• Mobile home and lot - $64,800

The dollar amounts for these loans may vary in high cost areas. In some cases, the amount of the loan limit can be increased by as much as 85%. For more information, contact your local HUD office.

VA Guaranteed Manufactured Home Loans

VA guaranteed manufactured home loans are available through various lenders. Though the VA does not make the loan, they do guarantee the loan. Eligible veterans can receive up to 40% of the financing they need or up the maximum amount of their veteran’s entitlement ($20,000).

To be considered a manufactured home by VA standards, the mobile home must be:

• Built on a permanent frame
• Be at least ten feet wide with 400 square feet of floor space (single-wide)
• Be at least 20 feet wide with 700 square feet of floor space (double-wide)

To learn more about VA guaranteed manufactured home loans, visit the VA website at www.homeloans.va.gov.

Internet Loans

Thanks to online lenders, mobile home financing has become easier than ever to qualify for. Though many traditional lenders do not like to offer mobile home loans, online lenders are more flexible and more willing to offer financing to those who need it, regardless of the type of home that is being purchased.

Lenders who offer mobile home loans include:

Financing is available for all types of homes.

• First National Bank
• First Union
• Key Bank
• Nations Bank

Retailer Loans

Many of the companies who manufacture and sell mobile homes offer mobile home financing. In some cases, this may be the best way to go because interest rates, as well as the loan terms and conditions, are often more reasonable.

If you are thinking about financing your mobile purchase through a mobile home retailer, be sure to make comparisons on interest rates, loan terms, and lending fees prior to making a final decision.

Other Types of Mobile Home Loans

If you are having a difficult time finding a traditional mortgage, you may want to consider a personal loan. Personal loans tend to come with higher interest rates, but they can be much easier to secure. To find out more about this type of financing, contact several traditional lenders as well as online lenders to get rates and quotes.