Take great care to educate yourself on a variety of issues regarding mobile or manufactured home financing. You'll save yourself a lot of time, money and headaches.
5) Mobile Homes built before 1976 cannot be refinanced The HUD Code, instituted in 1976, changed the standards of safety and the construction procedures for mobile and manufactured homes. As such, homes built prior to 1976 were not subject to the HUD Code and are regarded by mobile home investors as a higher risk loan for a lack of a minimum code of construction. Due to this condition, investors will still provide financing and refinancing for pre-HUD manufactured and mobile home loans, yet at a slightly higher rate than their post-HUD counterparts.
4) You can get a co-signer if you have trouble qualifying Contrary to popular belief, mobile homes are not cars and cannot be financed like them. The loan contract regards the signers as "borrower" and "co-borrower(s)". Also, it is inferred, when a manufactured home loan contract is executed by the borrower and co-borrower(s), that they are agreeing to live in the home as their primary residence. Making a false statement such as this constitutes loan fraud and is grounds for federal prosecution.
3) 100% Financing is available to purchase a mobile home There are NO 100% (or "zero down payment") financing programs available for any manufactured or mobile home loans. Do not be fooled! Many loan brokers will attempt to accomplish this type of mobile home loan, fraudulently, claiming the home to be a stick-built condo. Be sure not to implicate yourself in this kind of scheme by verifying that your loan broker truly understands and has a wealth of experience in dealing with mobile and manufactured home loans.
2) Mobile Home Loans are not conventional loans It is a common mistake to classify mobile or manufactured home loans as not being conventional loans. A conventional loan is any loan that is not insured by the FHA or guaranteed by the VA or Farmers Home Administration. There are FHA and VA loans available on mobile or manufactured homes and they carry many stipulations and restrictions with them; however, a mobile or manufactured home loan through a financial institution such as a bank or credit union is absolutely a conventional loan.
1) Mobile Homes must be attached to a permanent foundation to get financing This false statement is the telltale sign of a loan broker who truly does not know anything about mobile or manufactured home finance. Permanent foundations have NO bearing on the financing of a mobile or manufactured home whatsoever, and usually it's just an excuse for the broker or institution to avoid making (what is perceived as) a higher risk loan for your home.
About the Author: Josh Ladick is with the San Diego Mortgage Group , a mortgage funding and brokerage firm, with a specialty in mobile home loans. They are located in San Diego, and have financed hundreds of loans across California, however they can finance loans for chattel mortgages across the USA. For more information: San Diego: Mobile Home Loans or Refinance California: Manufactured Home Loan United States: Manufactured Home Finance . You can follow his articles at http://www.mobilehomenews.com/
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