How to Finance a Mortgage for a Mobile Home
With the improvements made in the past years, mobile homes, or manufactured homes, are now comparable to site--built homes. Mobile homes are financed as either real property or personal property. If the home has a title that is transferable, it is financed as personal property. A home on a permanent foundation that has no title is financed as real property and qualifies for better financing. Financing for a mobile home generally requires a down payment of five percent but offers a loan amortization of 20 to 30 years, according to Bankrate.
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Instructions
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Determine if you are financing your mobile home as real or personal property. Request the information from a salesperson or the current owner. This determines what type of loan you are seeking.
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Visit a mortgage company or local bank and request financing for a mobile home. If the mobile home is financed as real property, a mortgage company offers several types of loans with lower interest rates. The mobile must be set on a permanent foundation, carry a one-year manufacturer's warranty and adhere to the Model Manufactured Home Installation Standards, according to HUD.
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A local bank is the best option if the mobile home is personal property, since it offers in-house financing options. The down payment and interest rate may be higher than with a mobile home that is real property.
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Provide the lender with the required documentation, such as a completed loan application, copies of tax documents and pay stubs, along with employment verification. Also, include verification for any other forms of income.
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Complete the purchase process by following the guidance of your lender, who sets up an appraisal and a title search. Sign the completed loan documents, such as the mortgage and note. Take possession of the mobile home upon completion.
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References
- Photo Credit mobiles home 5 image by Marc Rigaud from Fotolia.com
