How to Finance a Manufactured Home & Land
Manufactured housing is a fancy term for a mobile home. Getting a mortgage loan for a manufactured home and a tract of land is a bit more difficult than obtaining a conventional mortgage or construction loan for your primary residence. But, if you have excellent credit and some cash on hand, you'll likely have your pick of lenders and competitive home loan products. Consider some options in financing a mobile home together with a lot.
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Things You'll Need
- Credit report
- Cash
- List of mobile homes and lots
- List of banks and mobile home lenders
Instructions
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Don't be surprised by credit issues when applying for a mortgage. Order a current credit report by going online to AnnualCreditReport.com, the official site for your free credit report from Equifax, TransUnion, and Experian. Make sure your credit reports are in tip-top shape. Dispute any errors online.
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Prequalify before shopping for a mobile home and mortgage. Your local bank is the first place to go for your loan needs. They are usually familiar with you and probably know your credit and payment history. Pre-qualification will let you know how much cash you need and what lenders require for closing.
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Shop around for mobile homes at local dealers first. Compare different floor plans and options from several dealers. You might consider financing directly with a mobile home dealer; however, dealer-financed products are often priced high with exorbitant fees. Dealers often mitigate their costs with free appliances, upgrades, and site preparation, but don't be tempted. Check the Better Business Bureau and make sure the dealer is licensed through the state's Division of Motor Vehicles, if you're purchasing a new mobile home.
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Choose the lender that offers the most competitive mortgage product based on your needs. Check online mortgage products if you aren't satisfied with local lenders. Do your homework and study the mobile home mortgage loan types and pitfalls, so you'll be prepared to make a wise decision.
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Tips & Warnings
If you already own your own land, you could use it for equity in financing your mobile home.
A mobile home can be repossessed just like an automobile when in default. Always make your payments on time.
