Mobile homes have come a long way from their “travel trailer” pasts. Mobile homes were originally designed to be, well, mobile, and they were marketed to individuals such as construction workers who traveled from town to town. Today’s mobile homes are usually permanently affixed to their properties. The quality of the building materials have also improved: today’s mobile homes look and feel more like dwellings built onsite. But even though they look more like traditional homes, you will probably not be able to get a traditional mortgage for one.
The reason in simple: mobile homes tend to depreciate in value. A bank wants solid collateral behind a home loan. Many traditional homes grow in value over the years. Therefore, if the borrower defaults on the loan, the lender can be assured that they will get their money back by selling the house. There are no such guarantees with mobile homes–particularly the single-wide variety.
But don’t despair! There are many companies that specialize in mobile home loans. First, you need to determine what kind of loan you need. If you are buying the land where the home will be installed, you can find a mortgage that will cover both land and home. However, if you already own the land, or are leasing a space in a mobile home park, look for a lender that specializes in “home only” loans.
Get up to Speed on a Mobile Home Loan
There are a few considerations when it comes to a mobile home loan. Your credit generally has to be good to excellent. If you need a cosigner, it has to be an individual who will live in the home. Also, there can be limits as to the age of the home: some companies will not extend loans for mobile homes built before 1976, and prefer units manufactured after 1984. You can find mobile home loan providers online; with a little research, you can be on the road to mobile home ownership.