Used Mobile Home Financing

Used mobile home financing comes with a lot of questions. Where can you buy a mobile home? How much can you expect to pay? How should your credit look if you consider financing? One of the biggest questions asked early in the game is whether used mobile homes can be financed at all.

Find out about different mortgage companies.

Many lenders will finance used mobile homes, and some for as little as a 5 percent down payment.

A variety of lenders, some of which specialize in used mobile home financing, will lend money to individuals who are interested in a purchase. Not all companies do offer this type of financing, however. As the value of aging manufactured homes varies widely, some finance companies prefer to lend money only for the purchase of new units. For companies that finance both used and new mobile homes, interest rates are often a bit higher on used mobile homes. Dealer financing is sometimes available, but is usually not the most cost-effective solution.

A lender specializeing in used mobile home financing is often the best bet for a loan. Banks and mortgage firms are a good place to start investigating rates. After finding a potential lender, you will need to discuss the application process with an agent of the firm.

Generally, an agent will begin the application process by giving you paperwork to fill out. Once the paperwork is turned in, he or she will meet with you to collect additional information about income, education, and credit. Better credit scores lead to lower interest rates, lower payments, and quicker approval, whereas poor credit may result in far less desirable results. Some lenders look at the past year of an individual's credit history instead of using the credit score as the benchmark for determining whether to lend.

Financing a used mobile home takes into account, of course, that the home has been lived in. What you look for in such a home is entirely up to you; however, a few rules of thumb should be followed. Buy a home from a dealer with a good reputation (check the Better Business Bureau) and with whom you've established a good rapport. Shop around for a while and find out if a single, double, or triple-wide is the best option. After viewing a few, your mind may change. Finally, don't buy a mobile home that's "too used," because very old manufactured homes aren't guaranteed to be built as well as more up-to-date models.

You can purchase a used mobile home almost anywhere, and although some don't allow financing, the vast majority will have financing options. The trick is finding a dealership that works for you. Used mobile home financing can be easier or more difficult depending on the dealer from whom the unit is being purchased. For example, buying a used mobile home from a dealer with a poor reputation might mean purchasing a less-than-quality product for more money than it's worth. When considering a used mobile home purchase, don't rush out to borrow money and begin paying on the first home you see. Financing a used mobile home is a big responsibility and is worth care and consideration.

The initial payments required for financing of a used manufactured home vary widely depending on the size and quality of the home, the lending firm, location, and many other factors. Some lenders charge application fees while others do not. A minimum down payment of at least 5 percent (and usually up to 15 or 20 percent) is often required in order to purchase a used mobile home; however, some companies don't require any down payment at all. Still others levy prepayment penalties.

Interest rates for manufactured homes are quite a bit higher than the rates for other types of residences, and used mobile homes have higher rates than new ones. If you're thinking about purchasing a mobile home, one of the first things you should discuss with your lender and dealer is how much you can expect to pay early.

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