How to Refinance Manufactured Homes & Land
Manufactured homes can be more difficult to refinance than standard homes, because manufactured homes often fall in value instead of increasing in value. However, land values may rise, making the land and/or the land and home itself worth more than the money you owe. If this is the case, or if you simply want to refinance, there are some simple steps you can take to do so.
Other People Are Reading
Instructions
-
-
1
Improve your credit. The better your credit score is, the better chance you have of being able to refinance your loan on your manufactured home and land. You can improve your credit by paying off debts, since debt-to-income ratio is an important factor in determining your FICO score. You can also make sure you make all your payments on time and correct any inaccuracies with the credit bureau.
-
2
Get an appraisal. You will typically not be able to refinance a manufactured home or land if you owe as much or more than the home is worth. Find out what the current market value is of your home and land and compare this to what you owe. If you have equity--or the home is worth more than you owe--refinancing will be easier.
-
-
3
Talk to your lender. Refinancing with your existing lender is often easier, since they already hold the note to the loan and have done the preparation work involved in granting a loan, such as appraising the property, running a title search and checking your credit. They may be the most willing to work with you to refinance to a longer term or lower rate.
-
4
Shop around. Regardless of whether your lender is willing to work with you or not, it may be a wise idea to check with other lenders to see if they can offer you a better deal. Compare interest rates, mortgage terms (five years, 15 years or 30-year fixed mortgages are common) and closing costs and fees to see who can offer you the best deal.
-
5
Close the deal. Apply for the loan refinance, and if it is approved, sign the required documents to close the deal. You will usually have to pay closing costs and fees with a loan refinance, so ensure that you factor in these additional charges when deciding whether or not it is worth it to refinance the loan on your manufactured home and land.
-
1
