Securing traditional financing for mobile homes and manufactured homes can sometimes seem difficult, especially in our current economical market. \u00a0Whether the mobile home is new to you or being refinanced, lenders typically have stricter underwriting guidelines than more traditional site build homes.<\/p>\n
Building codes changed in late 2005 after the severe hurricane season experienced in the Southern states. Mobile homes built after this date must follow a strict set of building guidelines; this helps to insure safety and a longer life span for those mobile homes built just months before. \u00a0Safety improvements include stronger construction materials that better resist moisture, wind and fire, extra cross beams for support, plus dozens of additional building improvements.<\/p>\n
Given this info, lets examine the various options available for financing your mobile home purchases.<\/p>\n
Government backed loans:<\/strong> If you are interested in a brand new mobile home, then a local mobile home dealer or mobile home community will be able to direct you to a nearby financing agency\/broker. \u00a0They will approve you for a certain amount based on your credit history, job record, amount down, current debt, savings, etc. \u00a0You can then take this approved amount to any mobile home dealer and purchase the new mobile home you want.<\/p>\n The Federal Housing Administration (FHA) and Veterans Association (VA) both have some level of financing available for mobile homes\/manufactured homes. \u00a0The subject property must be located or moved on a suitable site and attached to the ground conforming to current safety codes. \u00a0Mobile homes attached to rented lots in a rented park may be approved if the mobile home community complies with FHA guidelines.<\/p>\n Conventional Financing: <\/strong> Most conventional lenders will not loan money to mobile homes located within a rented mobile home community. \u00a0There is simply too much risk (I will explain why a little later). \u00a0However you can find conventional lenders that will lend to mobile homes with land (meaning the land is owned by the borrower). \u00a0Some requirements I have found in the past are that the subject mobile home is less than 15 years old, the borrower has 10%-20% down, over a 620 FICO score and an excellent job history.<\/p>\n A subset of conventional loans is the sub-prime lending market<\/em>, meaning the borrower has less than perfect credit history, typically a FICO score below 620. \u00a0The sub-prime market has its own lenders that specialize in financing mobile homes on land and within rented parks — requirements vary by lender. \u00a0These sub prime lenders offer mobile home loans with high interest rates, higher down payments, additional fees and typically shorter terms than conventional or government loans. (10 years V. 30 years)<\/p>\n