Posts Tagged ‘Mobile’

FHA Mobile Home Mortgage Loans – How they work?

April 13th, 2011

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 country or in a mobile home park).

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Posted in Home Loans Articles

Tags: Mobile Mortgage

Mobile Home Equity Loans

January 17th, 2011

Mobile homes built on fixed foundations are appreciating properties – their values appreciate with the passage of time. Hence, after a few years of timely mortgage payments, the value of the mobile home will be much higher than what it was bought for. This difference is called mobile home equity. Equity on a mobile home is equal to the numerical difference between the appraisal value of the home and the value of the mortgage.

Equity is built up over a period of time, and it is the possession of the owner of the mobile home. Since equity is a financial asset, it can be used as collateral to take a further loan. Such loans are called mobile home equity loans. Mobile home equity loans could be up to 85% to 100% of the value of the built-up equity on the home, depending on the credit score of the borrower and policies of the lender.

The process of taking a mobile home equity loan is much simpler than taking a normal loan. This is because the mobile home itself will be kept as collateral, or to be more specific, the equity on the home will be the collateral. The lenders would first get the property appraised through their appraisal officer or any other licensed professional. Then the value of the mortgage taken earlier is verified, and the difference is calculated to provide the equity. Mobile home equity loans carry lower rates of interest and can be spread over longer periods than ordinary loans.

A mobile home equity loan can be described as a mortgage upon a mortgage. Equity loans become very useful if a person wishes to start a small business enterprise after buying a home. Usually the lenders would not ask any questions about the purpose of the equity loan – it can be used for anything from renovating the home to going on a cruise. Thus, it is essential to remember that a home equity loan increases the indebtedness of the person, it is best to avoid them. Sun lender will provide a second equity loan, no matter how much capital is built.

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Posted in Home Loans Articles

Tags: Equity Mobile

Mobile Home Loans: Overview

January 5th, 2011

For all those new to the concept of Mobile homes, they are a makeshift arrangement that are constructed in companies and as the name suggests they can be carried to the work site and fixed on the ground. Generally, work sites are located in rural and suburbs which do not have office chambers as such.

These work sites are known as home parks in United Kingdom and United States of America. They are portable by semi trucks. Not merely assisting in catering to the professional needs, they also give a new dimension to the concept of motorized highway travel. These loans help make your life a journey a great comfort in truest sense. They play a vital role in providing shelters to the families who do not wish to expend much on accommodation. Furthermore, they are also a great help for those who love adventure and crave to lead a different life.

The good news is if you too wish to have a home for your self but due to monetary reasons which have kept you from getting one for yourself, there is nothing to worry about anymore. Today, they assist you in buying both the park and the home for yourself. The only thing to be kept in mind is not to get confused with the eligibility criteria of traditional home loans and these loans.

The construction standard of needs to be in tune with the proposed norms of HUD under the Federal National Manufactured Housing Construction and Safety Standards Act of 1974. These criteria are a must for achieving the mobile park load. Mobile home mortgage loans are regarded as chattel mortgages. To put in simple words, they are loans for movable property than real estate. So it is the mobile home that plays a central role, not the country.

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Posted in Home Loans Articles

Tags: Loans Mobile overview

Mobile home loans – Everything you need to know

January 3rd, 2011

When seeking financing for a manufactured home, it is well advised to find an expert that specializes in manufactured home loans. Otherwise you may end up losing your approval in the eleventh hour because the underwriter realizes that they cannot finance a loan for a manufactured home.

When you apply for a mobile home loan, you will need to address some very important regarding your personal finances. For example, if you have had a bankruptcy within 5 years, there are very few lenders that will finance you, so it is important to focus on rebuilding your credit. Just a year ago, a bankruptcy within two years was a deal breaker, but with the financial crisis underway, things have changed.

The age of the manufactured home is very important in getting financing. Any manufactured home built before 1970 will be very difficult to finance for two reasons. The first is that it is pre-HUD, which means that there were no regulating rules when the mobile home was built, and this increases risk. The second factor is that the mobile home is old, so it does not hold very much value.

The third most important factor in getting approval for a Manufactured Home Loan is your credit score. If your credit score is above 700, then it will be easier for you to get financing. If you have a troubled credit score, then you will usually have to come up with a higher down payment on your mobile home purchase.

Another important factor is your income-to-debt ratio, which gives the lender a sense of your reliability to pay them back, with your current financial situation. This ratio takes your monthly obligations (rent, car payment, student loans, mortgage, etc.) and compares it as a ratio to your income.

The last important factor in getting manufactured home financing is the amount you can put down on the home. The lender values the buyers ability to save money because this shows a history of responsibility. The down payment is also a way to manipulate the ratios by way of changing the monthly payment of the loan. Your mobile home mortgage broker or lender will go over all of this with you, so don’t feel as though you must become a home loan expert on your own.

Whether you are looking to finance chattel or need financing for personal property, you will definitely need a mobile home loan expert, or else your interests are left unprotected. If a mobile home has a permanent foundation, you may take out a mortgage to purchase both the home and land. However there are also loans available to finance the purchase of a manufactured home only, called a chattel mortgage. The benefit of a mortgage is that you may write-off the interest paid on a manufactured home loan, while taking a loan out as personal property does not allow for write-offs.

A personal property loan is meant for the purchase of homes on a rented lot as in mobile home parks. Personal property loans are offered by retailers who sell manufactured homes. In order to qualify, you need to put down 10 percent of purchase price for 30 year loans. The interest rate will be 2-3% higher than mortgages, fixed or variable. But, you can qualify for a home loan with higher debt ratio and use of loan funds to cover the cost of mobile home plus many improvements.

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Posted in Home Loans Articles

Tags: Everything Mobile

Find Bad Credit Mobile Home Loans – 5 Tips

November 29th, 2010

For millions of people across the country, buying a mobile home represents their first step in becoming a lifelong homeowner. Mobile homes provide an alternative to continuing to rent an apartment or living with family year after year, but they also allow the home buyer to avoid the big-ticket price of a traditional home.

When you are considering purchasing a mobile home, one of the first things that can come to mind is whether you should move forward even if you have a low credit score. After all, your credit rating is one of the biggest factors that determines whether you are approved for a loan – as well as whether you can qualify for an attractive interest rate.

With a bad credit score, getting rejected for a loan – or receiving a high-interest offer – can become a common experience for would-be mobile home buyers.

In order to find bad credit mobile home loans, try these 5 tips:

1. Get help in selecting a home in your price range:

When it comes to mobile home loan approval, price matters. The smaller the amount that you need to borrow, the better your chances of getting approved for a loan. Consider buying a home in the middle or at the lower end of your price range in order to improve your chances of home loan approval.

2. Figure out how much of a down payment you can afford:

Similarly, the more money you can put aside for a down payment, the less you will need to borrow. Think about ways you can save up or find a way to temporarily borrow money from friends or family in order to prepare a bigger down payment – and better chances of loan approval.

3. Prepare your list of bad credit home lenders:

Know where to hunt where the hunting is good. Meaning: there is no reason to approach any old home mortgage lender for a loan. Rather, limit your list of candidate lenders to those who advertise that they specialize in bad credit home loans. Be sure to build yourself a list of multiple lenders, since a bigger list will mean more chances for approval.

4. Contact your candidate lenders:

Contact and apply to the candidate lenders on your list, one after the other. Even if you receive an offer on the first application, do not stop until you have applied to all of the lenders on your list – at least 5 of them.

5. Always go back to request a better offer:

Once you are done with the first round of applications and have received one or more approvals, go back and request a better offer from those that gave you an offer. You may be surprised with what they will come back with.