How to Refinance a Mobile Home Mortgage
Mobile homes or manufactured homes have no permanent foundations because they are prebuilt in factories and towed to plots. Refinance loans are available for mobile homes and include such loans as personal property loans or chattel loans.
- Difficulty:
- Moderate
Instructions
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1
Research the types of mobile home refinance loans. Some mobile homes will qualify for a mortgage; others can be used as collateral for a personal property loan. Mortgages require that the mobile home be secured to the land. This is not a requirement for a personal property loan. However, refinancing a mobile home with a personal property loan is more expensive and yields higher interest and a shorter maturity period than a mortgage.
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2
Choose a refinance loan that will suit your purpose. You might want a loan with a lower monthly payment or a loan that gives you the stability of a fixed rate of interest. You might want to access the equity to make improvements on the home. You also could consolidate your debts into a single mobile home refinance loan. Look for lenders who offer repayment terms that will best suit your needs.
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3
Check whether you're a good candidate for a mobile home refinance loan. Your credit score should be 620 or higher to be approved for a loan. Your employment record should be stable. You should not have a record of filing bankruptcy in the last five years. You should have completed at least three payments on your existing loan, and self-employed borrowers should have filed tax returns for at least two consecutive years.
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4
Check whether your mobile home will qualify as collateral for a refinance loan. The home should not be manufactured before 1977. It should meet the standards of the U.S. Department of Housing and Urban Development and should cost less than $20 million. If the home was purchased after 1990, you can get a cash-out refinance loan. The mobile home can be located in a park or on leased land. The area of the home should be about 768 square feet to qualify.
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5
Look for licensed mobile home lenders. Make a short list of at least three lenders. Find out the terms of the loans, and choose the lender with best terms and the best rate.
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1
Tips & Warnings
Check for hidden loan fees. Be sure the cost of the loan will be worth the savings in a refinance loan. Out-of-pocket expenses should be kept at a minimum.
Avoid subprime loans. These teaser loans start at low interest and multiply to an exorbitant rate over time.
