Bad Credit Mobile Home Loans
You probably already know that there are plenty of people with bad credit looking to get home loans, but did you know that some of them were looking for mobile home loans? Most people that shop for mobile homes become surprised when they find out that they are not a cheap investment. Many individuals that frequently travel or are looking for a low maintenance, low-cost place to stay will often purchase mobile homes. In most cases, people decide to get mobile home mortgage loans and/or personal property loans. If you know that your home is going to have a permanent foundation, you can decide to get a mobile home mortgage to help cover the costs of both the home and the property in which it will reside.
In order to get a bad credit mobile home loan, you should take the time to discuss the options provided at banks, mortgage companies, and possibly private lending agencies. Most types of mobile home loans will be able to provide you with adequate funds to cover the cost of the home. If you need additional money from a bank or lender, you can have the mobile home appraised; if it is found to be more valuable than the selling price, you can get additional loan money to cover costs required to fix it up.
There are other times when people get personal property loans as well. These loans are primarily geared towards individuals that are going to buying homes in lots that require a rental fee (e.g. mobile home communities). Most of the time, you can get personal property loans directly from the agency that is selling the mobile home. It is a good idea to speak with a bank if you are unsure about what type of loan that your specific scenario will require. If you are renting property, you are likely going to need to get a personal property loan.
Bad credit mobile home loans are not very complicated if you meet with a trusted lender. Most often you will be required to make an initial down-payment (typically around ten percent of the total) before you are granted a loan. The down payment may be more if you have a very bad credit history. Most places will allow you to take out ten, twenty, or thirty year loans for mobile homes. Some people are able to secure better loan deals and save themselves money by purchasing a preowned mobile home.
How can you qualify to get mobile home loans for people with bad credit? First of all, the mobile home that you are purchasing must have been erected after 1976 in order to qualify for a loan. Secondly, the home must meet the requirements of the HUD (Housing and Urban Development) that reflect upon the National Manufactured Housing Construction and Safety Standards Act (1974). Always make sure that you meet the necessary requirements before deciding to take out any type of home loan. Also be sure to review the general set of FHA loan requirements.
It can be somewhat difficult to get yourself a new mobile home if you have poor credit. Most banks are going to see whether you have a credit score that is near 620. With that said, there are always lenders that are going to provide money to people with average credit. Having a 550 credit score or lower is going to make the process of obtaining a loan fairly difficult. If you find that your credit is really holding you back, you can always get a cosigner, make a larger down payment, or put collateral on the mortgage.
You should be aware that bad credit mobile home loans can be in the form of fixed-rate mortgages (FRM’s) or adjustable-rate mortgages (ARM’s). I recommend staying away from adjustable rate mortgages because they are subject to fluctuation. Try your best to secure a low fixed-rate mortgage and you should be satisfied with the amount that is paid. If you are unable to get a cosigner and don’t have any assets to use as collateral, be sure to focus on improving your credit score before attempting to take out any home loan.
It is always helpful to gather some free mortgage quotes with some lenders that you would like to work with. After you have gotten some quotes and determined the price of the mobile home, you can apply for a bad credit mobile home loan. If all works out well, you should be able to get the mobile home of your dreams.
