All About a Mobile Home Mortgage

A mobile home mortgage allows you to buy a mobile home just as you would any other type of house. There are some restrictions to this type of mortgage, though, and not every mobile home can be purchased through a mortgage. The more you know about mobile home mortgages, the easier it will be for you to get one.

Options in a Mortgage

In order to be able to get a mobile home mortgage, you need to be purchasing a home with a permanent foundation. Your loan can be for the home only or it is can also include the land. You can also just get the loan on the land.

Qualifying for a Mortgage

To qualify for a mobile home mortgage you will go through many of the same steps and processes that you would if you were buying a house. You can get the mortgage from the same lenders that you would have used to buy a house. You will have closing costs and you will have to go through an application process.

In addition, there will be an inspection to ensure that the mobile home qualifies for mortgage financing. Some things that will be required are:

Built after 1976 – Most lenders follow this guideline due to concerns about the life expectancy of a mobile home built prior to 1976.

Home must follow HUD building standards outlined in the Federal National Manufactured Housing Construction and Safety Standards Act of 1974 – includes that it must have a permanent foundation with wheels and axel removed, that must meet building code restrictions, that it must meet standards for heating, plumbing and air conditioning and that it must pass a strict inspection.

You must have absolute ownership without liens – for land only a co-operative ownership is okay.

The loan must be used to purchase the residence where you will live.

The lease on the lot, if not purchased, must extend to 5 years past the loan term.

A minimum of 620 credit score – this will vary by lender.

Getting the Mortgage

Once you have qualified and are approved for a mobile home mortgage, you will then begin the actual buying process. This will include putting a down payment, usually 5 to 10% of the loan amount. You will also have to pay closing costs and other fees associated with the loan. Generally, a mobile home mortgage will have a term of 15 to 30 years.

A mobile home mortgage allows you to get the home that you want. Many people choose a mobile home because they are often far less expensive than other types of homes. Many of the mobile homes today are built much like a home. They are sturdy and safe. They offer many of the same benefits as a home, some even have basements. A mobile home mortgage may be the right choice for your family. It is well worth looking into when you are shopping for a new home.

You may want to check out my other guide on mortgage calculations

Mobile Home Mortgage

mobile home mortgage calculator

All About a Mobile Home Mortgage

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