Home Loan Info

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Mobile Home Loan

With the price of home ownership being so out of reach for young people, many have resorted to the purchase of a mobile home. Though previously thought of as being a less than desirable way of living, newer models are often roomier than some homes, especially the doublewide models.

Mobile home loans are similar to mortgage loan in the respect that you are financing a “vehicle” in which to live, but the similarity stops there. Unlike a house, a mobile home or manufactured housing does not require closing costs, but rather it is registered, tagged, and titled as you would a car, except, of course, it doesn’t have to be inspected each year because it isn’t driven on the highways. Since there are no closing costs involved, the initial move is cheaper and takes less time.

Depending on the lending institution, there may be a special rate set aside for mobile home loans, or it may fall into the same category as an automobile loan or consumer loan. This means the interest rate might be somewhat higher than what you would pay if you were to buy a brick and mortar house.

Some lending institutions give financing up to 30 years for the finance of mobile homes, and others limit it to 15 or 20 years, but this again, is up to the individual lender. Even more of a problem is the fact that not all lenders are willing to provide mobile home loans. It may be necessary to check several places, or if you are purchasing through a dealership, allow them to locate the financing for you.

Typically, just as with a house, a minimum of 10% down is required depending on your credit. The base prices vary widely depending on the number of bedrooms, size of the home, and the age of the home. A recent search in one eastern state showed a 4 bedroom, 2 bath, brand new 28 x 52 retailed at approximately $89,000 including furnishings.

If you’re pressed for the down payment, sometimes the government agencies such as the Farmers Home Administration finance manufactured homes, but you will need to check and see what the qualifications are, and if you need to own the land for them to guarantee the loan.