Refinancing a Mobile Home in a Park
A mobile home located in a park is considered personal property--since it is not permanently attached to the property--limiting your refinancing options. Being classified as personal property means that you mobile home has a title, much like a car. The lender uses the title as collateral on the mobile home loan. If you default on the loan, the mobile home becomes the lender's property and you lose all rights.
Refinancing a mobile home requires a good credit score. Therefore, knowing your credit history before attempting to refinance your mobile home is important.
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Instructions
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Review your free credit report online at Annualcreditreport.com (see Resources). Choose your state and click on the reporting agency of your choice for a free report. Refinancing a mobile home requires good credit, so print a copy of your report and make sure there are no errors.
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Visit a private-owned bank. Banks that do not submit loans to an underwriter have special refinancing capabilities, whereas other lenders are limited to refinancing mobile homes based on underwriting approval. Banks provide refinancing for mobile homes if your credit is strong and you have a good work history.
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Locate a mortgage company or a broker that provides loans for mobile homes. Call the companies in your area and provide the broker with your information. Ask if he has lenders that service mobile home refinance loans.
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Compare the refinancing programs from each of the lenders. Determine which offers the best rate, lowest payment and most cash out.
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Provide a copy of the mobile home's title. This provides the lender you choose with the detailed information, such as make, model and size. Make sure the loan approved by the lender is beneficial and warrants refinancing.
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Complete the process required by the lender for refinancing. Generally, the lender needs a completed application, copy of pay stubs, employment verification, a copy of your current loan documents and any other documents for closing.
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