How to Refinance a Double Wide

Refinancing a double wide can result in a high interest rate.

Finding a lender who will refinance your double-wide mobile home can prove challenging. When lenders loan money on a home, they expect to recoup the majority of the amount they lend should you default on your loan. Unfortunately, mobile homes -- including double wides -- tend to depreciate or lose value, so traditional lenders are less willing to refinance these type of structures due to the potential to lose a large amount of money should you not fulfill the terms of the refinance loan.

Instructions

1. Contact your double-wide mobile home dealer or another local mobile home dealer and ask for a list of lenders who offer refinancing for double wides.

2. Call the lenders and ask if they are FHA-approved and specialize in refinancing double-wide mobile homes. The Federal Housing Administration insures lenders against loss if the customer defaults on the loan. A lender with this type of safety net will be more likely to grant you a refinance loan on your double wide.

3. Shop for the best interest rate you can obtain on the refinance loan for your double-wide mobile home. Don't take the first offer you receive. Compare different rates from different lenders to find the best one. A lower interest rate can save you hundreds or thousands of dollars during the life of the loan.

4. Complete the applicable paperwork and provide all lender-requested information to initiate the refinancing process. You will fill out a loan application, agree to a mobile home inspection to determine if your double wide meets Model Manufactured Home Installation Standards and provide personal information about your income and expenses. Be prepared to have your credit verified.

5. Read the terms of the refinance loan to ensure that you understand the interest rate, payment amount and length of the loan. Ask questions about anything you don't understand before signing.

Tips & Warnings

• If you can't find an FHA-approved lender in your area, you can accept a refinance loan from another lender that's willing to grant you a loan at a decent interest rate.

• Make sure the interest rate on a refinance loan for your double wide won't cause you a financial hardship before agreeing to the loan.

References

• U.S. Department of Housing and Urban Development: Financing Manufactured (Mobile) Homes
• Bills.com; Mobile Home Refinance Options; September 2007