Are you interested in buying a mobile home? If so, you may have found that many mortgage lenders do not deal with mobile homes. This is because a mobile home loan is not handled the same as other real estate loans. A mobile home loan is more like a car loan than a mortgage. So where can you find mobile home lenders?
Mo Bill Buyer, learned from his brother, Homer, that buying your own home rather than renting was a strategy many successful people used for building wealth. But Moe Bill Buyer couldn’t afford to pay as much as his brother. He found that all he could afford was a used mobile home.
Mo Bill asked Homer where he was getting the loan for his home purchase, but Homer’s lender did not deal with used mobile homes.
Mo Bill went to his local bank for a loan, but they wouldn’t lend him the money either. He finally turned to the internet and searched for mobile home lenders. What do you think Mo Bill found?
For new mobile homes you can usually get a loan through the dealer just as you can from an auto dealership. However, this may not be the best loan available. It is best to shop around and get several quotes before committing to a particular lender.
Because mobile homes depreciate quicker than fixed homes, they are viewed as a higher risk loan than a standard mortgage. The lender also does not have the amount of protection afforded a mortgage lender. For these reasons, mobile home lenders often charge higher interest rates than you would find on a site-built home.
It is also harder to refinance a mobile home because of the depreciation involved. There are, however some companies that specialize in mobile home purchase loans and refinances. There are even some investors who specialize in buying discounted notes on mobile homes.
- There is no pre-approval for mobile home
- Mobile homes manufactured after June 1976 are built by HUD standards, and are called manufactured homes.
- Debt to Income ratio cannot exceed 45%
- Loan terms are generally 15 or 20 years
You can find more information about buying mobile homes in the Manufactured Home Buyer’s Handbook.
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Believe it or not, I just got a family refinanced with FHA for a mobile home – but the kicker was that no one had ever titled the mobile home! So, guess who got to go to the DMV to make the deal happen! Yup. It was real fun! However, the family really came out with a great deal, so it was all worth it.
Florida Mortgage’s last blog post..7 Common Homebuyer Mistakes Brochure
We just refinanced a famliy here in Central Florida with an FHA home loan. Luckily, there was one lender here we could use for the mobile home refi.
Kevin’s last blog post..7 Common Homebuyer Mistakes Brochure