Buying a mobile home can be achieved with a loan or mortgage the same as a conventional loan with some differences due to the fact that a mobile home is able to be moved and is therefore not as secure of a loan for a lender.
Good credit and or collateral may still be a requirement for these loans
which are not usually classified as “prime”.
Types of loans:
- Home Only.
- Home in park.
- Land Only.
- Home and land.
Home Only loans on private land
This is where the homeowner owns the land or is buying the land on a mortgage and wishes to buy a mobile home on a loan to be placed on the land.
Home only in Park Loan or Mortgage
This is where the prospective borrower does not own the land but wishes
to buy a mobile home on a loan to be installed in a registered mobile
home park. The buyer will pay a mortgage to the lender and pay lot rent
to the park.
Land only loans and Mortgages
This type of deal is where the borrower owns a mobile home and wants
to buy a peice of private land on which to set the home.
Home and Land Deals
In this deal the lender finances both the land and the home in a package
deal where the loan is usually held by one loan company. Often this is
seen as a more secure loan for the lender to make.
Loan and Mortgage considerations for Manufactured Homes
The lenders in this industry tend to specialize in these types of loans and
are used to dealing with the special circumstances that can arise. Each of
the above loans carry different levels of risk and exposure or the lender
and some firms will not be comfortable lending in some circumstances.