Mobile homes are included under the category of real estate. Hence, companies that provide home loans also provide loans on mobile homes. However, the requirements and natures of these loans are slightly different than loans given for fixed homes.
You will find that these FHA loans do have certain requirements. For example, you must be able to provide a five percent downpayment and have an acceptable credit rating. There are maximum loan amounts and maximum terms. For example, the loan term requirements are 20 years for a mobile home, 15 years for a lot and 25 years for a mobile home and lot. There are many mobile home sellers who also offer financing for their customers. When you go shopping for a mobile home, be sure to ask if the company offers any type of loan program.
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.
Some financial institutions have mobile home foundation requirements that have to be fulfilled in order for the loan to be granted on both owned land or on mobile home parks. One of the requirements is that the wheels, axles, and hitch of the mobile home have to be removed. Another requirement is that the mobile home has to be permanently affixed to one of the following foundations, either a poured concrete support column installed below the frost line, or a poured concrete slab on grade with a floating slab and concrete block piers installed below the frost line.
If you have bad credit and want to own a home, you may want to go this route. Then when your credit has improved and you want to make the move to a traditional style home, you will be better prepared to do so.
Tags: Loans