How to Purchase a Mobile Home Legally

Owning a mobile home fufills the American dream for many citizens.

Mobile homes, known in the lending world as manufactured homes, are stand-alone units that can be used as primary residences. There are a number of ways to purchase and finance manufactured homes, all of which are legal and sound. However, before you jump into a manufactured home mortgage or throw down a huge chunk of cash for one, you should take time to research your options. The process of purchasing a mobile home differs from buying a single-family home.

Things You'll Need

• Income documents (pay stubs, W-2s, tax returns)

Instructions

1. Research your options for mobile homes. The biggest question is whether you want the home to actually be "mobile" or if you want a permanent residence. Usually, the determining factors are whether you own the lot where the home sits and whether a foundation exists. You will receive better loan offers for a "permanent" mobile home.

2. Purchase the land first, if you decide to own a permanent home. You can purchase the land and the home together, but you may receive more favorable rates and programs if you purchase the land separately. You can buy land from a mobile home park or in a private location elsewhere. Make sure to check the zoning restrictions for the land.

3. Decide between financing the mobile home or purchasing it outright. If you have the money, you will save money in interest by purchasing it outright, but there are significant tax advantages to keeping a mortgage, too.

4. Research FHA lenders if you choose a "permanent" situation. The Federal Housing Administration offers specific programs to manufactured home borrowers. Make sure your home adheres to the guidelines. For example, you cannot take out a mortgage larger than $92,904.

5. Research the lender that you hope to do business with at the Better Business Bureau (BBB). This will tell you if you are dealing with a legitimate, legal lender--not a scam artist.

6. Research the title to the mobile home before you finance or purchase the home. This will tell you if the ownership documents are in order, sound and clear of liens. You will need to visit the Registry of Deeds in your county to research the title. If the name on the title doesn't match the name of the seller, you may be purchasing an stolen home.

References

• Housing And Urban Development: Financing Manufactured Homes
• Bankrate: Mortgage Options Vary for Mobile Home
• Consumers Union: Manufactured Housing: Consumer Tips

Resources

• Better Business Bureau