Financial Disclaimer.
Before we can get into this subject, you must understand that I am not a financial advisor, nor am I giving you financial advice. The following content is for informational and entertainment purposes only and does not constitute financial, accounting, or legal advice.
Can I Get A Mobile Home Mortgage?
Mobile home mortgages are available for buying your home. Buying a mobile home can be achieved with a loan or mortgage just the same as a conventional loan. There are however some differences because a mobile home can be moved.
The mobile homes’ mobility gives less security for a lender, the same as any vehicle.
Different Types of loans.
- Home only.
- Home in a park.
- Home and land.
- Home only loans on private land.
Different Lenders To Choose From.
- Banks and Credit Unions
- Mortgage Bankers.
- The Federal Government.
- Private Lenders.
- Hard Money Lenders.
- Owner Financing.
Types Of Loans For Consideration.
Home Only Mobile Home Loan.
This is where the homeowner owns the land or is buying the land on a mortgage. The buyer wishes to purchase a mobile home on a loan to be placed on the same land.
Home Only In A Mobile Home Park.
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.
These loans are the most risky from a lenders point of view as the buyer has two obligations one to the bank and the other to the park. If the buyer fails to pay the lot rent to the park things can get complicated.
Home Only On Private Land.
This can be where the buyer already owns the land. These loans are somewhat easier to obtain because of the extra collateral offered by the buyer.
Land Only Loans and Mortgages.
This type of deal is where the borrower owns a mobile home and wants
to buy a piece of private land on which to set the home.
Home and Land Loan 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.
Retired Title Loans.
When considering home and land deals the lender will usually want the title to be “retired”. This allows the mobile home to be permanently tied to the land and re-classified as “real property”.
This title retirement action is safer for the bank as now they have a combined lien on the mobile home and the land.
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 for the lender and many firms will not be comfortable lending in certain circumstances.
Do I need Good Credit For A Mobile Home Loan?
Generally speaking when borrowing money for anything, the higher your beacon score and the larger the deposit amount the better chances you will have with any bank or lender.
Good credit and or collateral may still be a requirement for these loans.
Mobile home loans are not usually classified as “prime” loans.
