We get many calls from people looking to save money on their loan payments. We are not surprised, some people are paying well above 9.00%, we even refinanced a person just the other day who was paying 15%! With rates as low as 6.50%, now is a great time to refinance or buy a Mobile Home. Purchasing a Mobile home now, while values and rates are lower, or refinancing for a lower payment could turn out to be a great decision. Mobile Home Loans needn’t be hard.<br>
Most people who know about Mobile Homes realize that the financing is not the same compared to regular house loans – but what could you get these days? What current tightening in the mortgage business have spilled over to the Mobile and Manufactured Home loan area?<br> For more information visit this: Mobile Home Financing website.
The breakdown of loan criteria is shown below. Think about this when looking at your options. <br>
The year built of the home is very important. Purchasing a mobile home manufactured in 1972 is tougher to get a loan on, compared to a 1986. 1969 and older are virtually impossible to get a loan on, but a new home could only need a 10% down payment.
Rates – 6.50% is the lowest we have ever heard of. Usually with good credit history, good income, and a decent equity position you may be qualified for the lower rates. These may be from 6.49% to 9.00% depending on all of the factors listed here.
Terms – Most people realize that the best mortgage is a 30 fixed rate loan. However, this is just not available for Mobile Homes (even on land!). Loan terms are usually 7, 10, 15, 20 and 30 years. There are many combinations and not one loan is the best for everybody. We suggest seeking the advice of a professional, someone who can give you several options and guide your choice based on what your plan is for the future.
Having good credit is always a good thing, but today it is very important. You should expect to have to explain any late payments, collection accounts, charge offs and any liens – you could even have to pay any old balances off. To get your FICO score up (if needed) is a pretty simple task, but it is correct that your score is everything. Good rates are meant for borrowers with good credit.
Income – Surprisingly we see people apply for a mortgage who don’t have a job or other source of income. You must have twice as much gross income per month as your loan payment, space rent, and all other payments combined. A large problem recently is for business owners – “stated income” is long gone, so a lender can only use the income you show the IRS on your income taxes.
Reserves – It’s for sure a great idea to have some extra cash put aside for a rainy day. Any lender will look for two months or more of total payments in some sort of account.
Few lenders are making Manufactured Home loans now without some money required as a down payment. The only time this happens is when a brand new home is put in and only if the borrowers have excellent credit and monthly income, then possibly 10% down or 5% down is available. In all other circumstances you should assume that 20% or more will be needed for a down payment or equity position after the loan is done.
You can still get cash out of your home, assuming you have enough equity. The qualifications may be harder, but home improvements and debt consolidation money is available.
The most ideal thing for a person thinking about a Mobile Home loan is to consult with a professional and discuss their circumstance. Getting a loan is liked trying to fti a square block in a round hole – sometimes it will fit, sometimes it doesn’t. Let a professional assist you make the best decision for your situation. They will ask specific questions to determine your qualifications, they will then provide you with the loans best suited to you and your future plans.
For more information visit these additional pages: Mobile Home Loans and Manufactured Home Loans