Are you the owner of a mobile home and you have ugly credit? Do you want to purchase a home of the mobile style, but you know you have bad credit? If this sounds like you, then you need to know what your options are so that you can find the financing you need to get the mobile home of your choice or to refinance your current mobile mortgage. Here are some options for mobile home loans for bad credit to help you.
First, you should always start with your bank or the company that is currently holding your mortgage. This is the best place to start because they will have the lowest rate if you can get a loan through them. They will have requirements like the land must be owned by you and the mobile needs to be on a foundation, but these are pretty normal. Some will allow you to live in a park, but not very many.
Second, you can try a non conventional lender that does mortgage loans. They will have better mobile loans for bad credit because they do not have very high requirements for credit or income. This is probably your best bet, but they will have a minimum loan amount so if your mobile is not worth very much you might have trouble getting a loan this way.
Last, if you are purchasing and you have no other options for mobile home loans for bad credit, then you can go to a buy here pay here mobile home park. This is a great way to get started and once you pay off your mobile you can buy some land and move it there. Then, you will not have any issues getting financing for your mobile if you ever need to refinance it.
By: Gressly Stevens
Posts Tagged ‘Mobile Home Park’
FHA Mobile Home Mortgage Loans – How Do They Work?
March 16th, 2010
If you are looking to buy a mobile home and you have a limited amount of money to put down towards your purchase, you may want to consider a FHA mobile home loan. FHA stands for Federal Housing Administration and it’s responsible for Housing and Urban Development (also known as HUD). How does this help you? FHA insures your mortgage loan so that lenders will give you a good deal, even though you do not have a sizable down payment.
Under the FHA mobile home loan umbrella there are two types of programs. One is for people who already own land to put the mobile home on and the other is for people that choose to locate their mobile home in an established mobile home park.
When lenders consider applicants for FHA-backed mobile home loans, they must follow certain eligibility requirements. These requirements include considering the applicant’s credit rating, the income and the ability to repay the debt.
A Title 1 loan can be used to buy a mobile home, a lot on which to place a mobile home, or both. The home must be the primary residence of the person or persons obtaining the loan. There are maximum loan amounts as well as loan terms that must be adhered to, as follows. For a mobile home only, the maximum is $48,600. For a piece of land or lot, the maximum is $16,200, while the maximum for a combination of the two is $64,800. Maximum loan terms for FHA mobile home loans are: 20 years for a mobile home or a single section mobile home and lot, 15 years for a lot, and 25 years for a multi-section mobile home and lot.
Most of the time when you buy a mobile home, you will also have the opportunity to finance your purchase at the mobile home dealer in which you make your purchase. Sometimes these dealers will not offer FHA-backed loans. If they do not, ask them for a referral to a lender who will use FHA. Or you could consider finding a lender online.
To qualify for a FHA-backed mobile or manufactured home mortgage loan, you must meet some minimum criteria. You must be able to provider five percent down payment (although there are additional programs to help if you do not have this amount), proof of income and a suitable place to locate your mobile home (this may be on your own land or in a mobile home park).
By: Milt Wapner
