How To Get a Mobile Home Loan

Mobile homes are, just as the name implies, a home that you can move. They're usually a bit smaller than traditional homes, but what they lack in size, they gain in affordability. That said, most people still need a loan to get a mobile home. Having a nice down payment helps, but there's a good chance you'll need a mortgage.

While it is easy to get cash for mobile homes, it's not always easy to get approved for a mortgage on a mobile home, we'll take you through the process and how to prepare.

Steps To Get a Mobile Home Loan

Several types of homes are often considered or called mobile homes. These are manufactured homes, mobile homes, and some tiny houses. Mobile homes are usually able to be moved with the assistance of a vehicle and cost much less money than traditional housing options. 

The loan options for mobile homes are similar to traditional housing loans, but you also have some different options. Learn more about each option below.

Federal Housing Administration (FHA) Loans

The FHA has several options that will help you get approved for a mobile home loan or a manufactured one. These are Title I and Title II loans. There are different requirements for each type.

Title I Loan 

Title I loans are useful for a few reasons. They can be used to manufacture a mobile home or to purchase an existing one. Title I loans are also great for purchasing mobile homes within communities. Companies and individuals can both apply for Title I loans.

Title II Loan

Title II loans are different because companies can't leverage the loans. Therefore, only individuals who plan on residing in the home can access the loan. These loans also have some other unique rules you'll find below.

• The home must have at least 400 square feet and be made after 1976
• The home has to be built on a permanent chassis
• The loan has to cover the home and the land

Both Title I and Title II FHA loans are good options.

Mortgages

You can get a mortgage for a mobile home with financial institutions like Fannie Mae and Freddie Mac. Both organizations offer loans for mobile home buyers with as little as 3% down. Additionally, you can get a Veterans Association loan for as little as 1% down.

Personal Loans and Chattel Loans

Chattel loans are unique for mobile homes. A chattel loan is designed for things like large planes, boats, and other big vehicles. In some cases, chattel loans get approved for mobile homes. If all else fails, you can get a personal loan. Some mobile homes cost less than $100,000, so it's possible to get a personal loan.

These are the options you have to get a mobile home loan, but there are also some things you can do to prepare yourself financially to get a loan. 

How To Prepare for a Mobile Home Loan 

When you want to apply for a mobile home loan, there are a few ways to prepare. The best way to prepare is to save up for a down payment and to check your credit report.

Save Money for a Down Payment 

The best way to prepare for a big loan like a mortgage is to save money for a down payment. Having money for a down payment reduces the total amount of the loan. The more money you have saved, the better. Usually, it's best to save up at least 20% of the total value of the mobile home. However, if you're a first-time home buyer, you can put as little as 3% down. Mortgages for veterans may also require less down as well.

Check Your Credit Report

One of the best ways to prepare for a mobile home loan is to check your credit report. Credit reports contain information about your credit history, which is what lenders use to determine if you're a good fit for a loan. You can check your credit report with tools like Credit Karma and Experian. 

That said, some mortgage companies may go deeper and request a background check. We recommend using a verified background check tool like Information.com to check your criminal and other personal records. Information.com's background check tool is one of the best tools you can find. You can view all of your public records in the full report, and it will take you less than 10 minutes. When it comes to getting a loan, preparation is key.

Prepare for a Mobile Home Loan Today

Mobile home loans can help you get the home of your dreams. While the process isn't easy, and you can't always secure a loan, knowing what to expect during the process will help you prepare. To ensure that you know what will come up in the credit check, we always recommend using Information.com to run a background check. Doing so will keep you at least one step ahead of the lender.