Mobile Home Loans
If you are in the market for a mobile home, you’ll find a variety of loan programs and financing options to make buying the home of your choice affordable and easy. Even people with poor credit may be able to obtain financing for a mobile home. The interest rates will be higher, but can be refinanced at a later date when the credit rating improves. There are even FHA loans suitable for mobile homes. The two main types of FHA loans are one for people who own their own land on which the mobile home will be placed, and one for people who will be living in an established mobile home park.
Some companies require mobile homes to be fixed to the ground in order to provide loans for them. This includes removing the wheels, axles and hitches of the homes. Such requirements are called foundation requirements. Lending companies usually put this requirement in order to secure themselves by creating fixedness for the property. An extreme requirement for this is to affix the entire home on a concrete foundation. This is also a usual demand by lending companies.
The very fact that mobile homes are movable increases their insecurity about the money lent. Many banks and lending organizations have today completely stopped writing loans for mobile homes without land.
It is comparatively easier to get a loan for a mobile home with the land on which it is installed. These loan amounts are higher, because they also provide for the price of the land. Again, these loans do not provide for the taxes that may go along with the land.
Financial organizations normally provide 75 to 90 percent of the total cost of building the house. Mobile home mortgages are usually long-term mortgages for periods generally above 10 years.