Loans for Mobile Homes – What you must know | Credit Repair You Can Do Yourself

Loans for Mobile Homes – What you must know

August 24, 2010 | Author admin

Of all the clients we see right now getting loans on their mobile homes, most are already paying through the nose – 10.00% and above – someone actually was paying 14%! Rates on mobile homes are now very low, definitely some of the best in a long time. 6.50% is the lowest we’ve seen. Right now is the right time to buy or refinance your manufactured home. Manufactured Home Loans shouldn’t be hard.<br>

Loans on Mobile and Manufactured homes are different than a usual house loan, this is somewhat expected. So, what is available now? Is the current loan business as tight with Mobile Homes as it is with all other types of loans? What kind of rates and costs will you have these days?<br> For more information visit this: Mobile Home Financing website.

Right below is a current snapshot of what you can expect for a ususal Mobile Home. <br>

Age – This means the year built of the home. Loans for 1970 and younger is common, even on very good rates like 6.50%. But, on old homes, built in 1969 and older, there is very little money to lend.

Normal interest rates for mortgages will range from 6.75% on the lower end, to 8.75% and more on the high end. The most favorable rates are available for well qualified borrowers, however all factors need to be looked at.

The loan term is the length of time a loan goes on for. A Mobile Home loan will usually go as short as 10 years, and as long as 30 years. Most are written at 15 or 20 years long. It is better to consider your whole plan for living in the home – will you need to have the loan paid to zero sooner than 30 years? Or will a higher monthly payment cause you not to be able to afford the home?

Credit – Nowadays it is critical that you have great credit to get any loans. This is especially true for Mobile Home mortgages. Any issues on your credit report must be explained and be current for a few months if not few years. Assume you will have to pay a higher rate if your credit is not very good.

All lenders are now looking for income from a reliable and ongoing source. You must prove at least twice as much in income as is required for the payment, the space rent, and all of the other debts (cars and credit cards). Be prepared to dig out your income tax returns, pay checks, and W2s – and if you are self-employed, it will be even tougher to qualify.

Extra cash left over after the closing is finished (alsoknown as Reserves) needs to be proven to the lender. Usually they will want to verify 2 to 6 months of emergency cash in some sort of account that you own.

Very few lenders are doing Mobile Home loans now without some down payment money, or equity in the property. The only time less than 20% is available is when a brand new home is put in and only if the borrowers have perfect credit and monthly income, then maybe 10% down or 5% down is available. In all other circumstances you need to assume that 20% or more will be needed for a down payment or equity position after the loan is done.

Cash out – Yes, it is possible to get money from your Manufactured Home! Usually it’s only given for paying off other debts or for improving your home, but it’s available if you need it.

The best idea for anyone thinking about a Mobile Home loan is to call a professional and talk about their situation. Lending is liked trying to fti a square peg in a round hole – sometimes it fits, sometimes it doesn’t. Have a professional assist you make the best decision for your situation. They will ask specific questions to find out your qualifications, they will then give you the loans best suited to you and your future plans.

For more information visit these additional pages: Mobile Home Loans and Manufactured Home Loans

Credit Repair You Can Do Yourself

Loans for Mobile Homes – What you must know

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