How to Finance a Mobile Home With Acreage in Florida

Mobile homes have vehicle identification numbers (VINs), and anyone wishing to finance a mobile home with land must first permanently attach the home to a plot of land. Many banks allow people to refinance separate mobile home and lot loans into home equity loans or mortgages. Some people benefit from consolidating the loans because banks generally offer lower rates on land and home mortgages than on separate land only or mobile home loans.

Instructions

1. Review the mobile home purchase agreement or title. You cannot finance or refinance a mobile home that was built before 1977 because homes built prior to then do not meet current construction and safety standards established by the U.S. Department of Housing and Urban Development in 1976. If your home was constructed no earlier than 1977, you can proceed if you make sure that the VIN has been removed and that the foundations of the home are permanently fixed to the ground.

2. If you are refinancing, find your most recent mobile home loan statement and your lot loan statement. If you are buying a the mobile home and land package, agree to a purchase price with the seller and ask a real estate agent or attorney to prepare a sales contract. The contract stipulates that the deal depends upon your ability to obtain financing.

3. Call two or three local banks and ask about mobile home and land financing. Not all banks offer mobile home-related loans, but banks that cannot help you will often direct you to local banks that can help. Set an appointment with a local lender that does offer mobile home and land loans.

4. Provide the lender with your purchase contract, two years of tax returns, identification and 60 days of bank statements. If you are refinancing a mobile home and land package, provide the lender with your statements for your existing mobile home and lot loans. The lender will order an appraisal for the mobile home and land. The appraiser determines the eligibility of the collateral and prices it. If the home and land meet underwriting requirements, you can set a closing date for the loan.

Tips & Warnings

• Generally, lenders restrict mobile home and land loans to between 70 and 80 percent of the market price of the collateral. Consequently, you must make a down payment of 20 or 30 percent when making a purchase in addition to paying the closing costs.

References

• U.S. Department of Housing and Urban Development: General Program Information
• Sun Coast Schools Federal Credit Union: Mobile Homes and Land
• Charlotte County Florida: Property Tax Exemptions
• Florida Department of Highway Safety and Motor Vehicles: Department of Highway Safety and Motor Vehicles: Forms
• U.S. Department of Housing and Urban Development: Financing Manufactured (Mobile Homes)

Resources

• VyStar Credit Union: Mortgage Loan Rates