How to Get Manufactured Home Financing
Buying a manufactured home can provide you with a housing option that is much less expensive than a traditional house. While these homes can be less expensive overall, they can be very difficult to finance. If you do not have the total amount of money that it will take to buy the property, you may need to shop around and explore your options for financing the mobile home. In some cases, the terms you find may be unattractive, but they may help you buy a home.
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Instructions
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Inquire with the seller of the mobile home to find out if it offers financing of some kind. Many mobile home sellers offer in-house financing that you can qualify for even if you have questionable credit and little money for a down payment. With this option, you may have to agree to a high interest rate.
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Secure a loan through the Federal Housing Administration Title I Program. This is a program that provides loans backed up by the federal government. With this type of loan program, you can borrow money to purchase a piece of land and money to buy the mobile home. Through the Title I program, you can borrow money for a maximum of 25 years, depending on what type of loan you get.
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Work with a traditional lender to secure financing for a mobile home. In some cases, the lender may not want to give you a traditional mortgage but will require you to take out a personal loan to pay for the mobile home. While this will get the job done, it also can be expensive as the interest rates are higher. If you can find a mortgage lender that is willing to give you a mortgage for this type of property, it will still be at a higher rate.
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Use a home-equity loan on your primary residence to come up with enough money to buy the mobile home. This is only an option if you are buying a mobile home as a rental property or as a second home and you have equity in your primary residence.
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Tips & Warnings
Making a larger down payment can help you qualify for financing easier and could potentially get you a lower interest rate.
Avoid agreeing to a payment that increases with interest rates. Since your rate will most likely be high anyway, you should stay away from adjustable-rate loans.
