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.