Mobile Home Financing
People every single day ask me how to get financing for a mobile home. The answer is a little bit complicated, as it depends on different factors. If you are buying a new mobile home, and looking to place it on your land, then yes you can. Many lenders such as 21st mortgage, Vanderbilt, and other lenders that specialize in mobile homes are more than happy to lend you the money if you have a FICO score higher than 580.
Another way to get into a mobile home is to place your land up as collateral for the down payment. This means that instead of paying $5,000 – $20,000 down on your dream mobile home, you would pay nothing but your land will go into the lien on the note. This is a very popular way to help finance a mobile home, because if your land is valuable enough you can be well below 580 and no one cares.
However, if you are interested in purchasing a used mobile home and want to move it to your property, unfortunately it will be near impossible to finance this loan through a bank or mobile home lender. Basically a good rule is if it is the mobile homes second move, it can’t be 3rd party financed. So the best way around this debacle is to try to get owner financing. Most mobile home owners selling their home understand that to get the most money for their home they will need to offer this to potential buyers.
So here are the best ways to finance a mobile home:
Just pay cash – Cash is king, if you can afford it – do it.
Try to get owner financing – This is the most stress free way to finance the home if you can get the owner to offer this.
For new mobile homes only – Getting a mobile home loan is not that hard if you have above a 580 credit score or you would like to place your land up for collateral.
So all in all, you can see how the mobile home finance market can be a little bit confusing if your just getting into it. As the mobile home financing world is completely different from site built or stick built homes. As mobile home building codes continue to get better, and the industry is seeing a rise in home owners, hopefully the hassle of getting financing will get easier over time.