Mobile Home Loans

Mobile home loans are unique with respect to having two primary options: 1) without land and 2) with land. These turn the financing into an alternative process depending upon the circumstances. Home owners must find a good lender who will understand all of the details surrounding the mobile home lending process. This sector is important for low income people and seniors needing a smaller living arrangement.

Low Income Sector

Mobile homes are perfect for people with a lower income. This living arrangement gives them a modicum of freedom in controlling their environment that renters do not have. This is an affordable way to live. Home owners can move these homes to new locations when necessary.

Senior citizens prefer mobile homes to downsize from larger homes. There is less landscaping, housekeeping and maintenance with a mobile home. Mobile home loans provide for any renovations, upgrades or repairs.

Some banks show higher default rates for mobile home loans. They might be more hesitant to offer this type of financing.

Manufactured Housing

It is important to take advantage of 40-year low interest rates to find the best deal for your housing. Affordable mobile home loans provide the capital to pay for all your needs. The Internet can be used to compare bank rates for different mobile home loans.

The more “fixed” homes without “additions” will tend to receive a better financing deal. This is because it more closely resembles a traditional home loan. Mobile home loans are considered “alternative” financing because the majority of people rent or live in immobile homes.

Highly Specialized Loan Process

Mobile home loans are highly specialized with their own rules. The mobility of the housing makes it similar to an automobile or boat loan. This would fit into the personal property loan category.

This value of the mobile home will depreciate over time. It will be more difficult to get a loan on an older mobile home.

Without Land

The owner of a mobile home without land might rent a space in a trailer park. This is similar to the apartment renter. The location, characteristics and type of mobile home parks could affect the parameters of mobile home loans. In these parks, some maintenance, facilities or utilities might be shared.

With Land

When the owner has land with the mobile home, the defining factor is the mobility of the living arrangements. While the owner will prefer a house that can be moved, bankers prefer a home that is fixed to the land. This makes it easier for the banker to calculate the asset values. There are also key tax benefits.

This non-traditional loan requires expertise by the financier. There are also large acreage loans with mobile homes.

Single- or Double-Wide Homes

Lenders will also divide mobile home loans into single wide versus double wide homes. The value of these structures will influence the size of mobile home loans available.

Debt consolidation loans are also an option for mobile homes. It is important to find the best rate possible for mobile home loans.