‘How do I get a home equity loan on my mobile home with bad credit?’
Most people don’t realize that mobile home loans behave very much like traditional home loans. That might come as a surprise since mobile homes can ‘pick up and move,’ but it’s true. Mortgages for mobile homes have a lot of the same characteristics as loans on houses that are ‘stuck,’ including the ability to borrow money against their own value. It’s true – mobile home equity loans are a very real thing, even if you have bad credit. The only real difference between an equity loan you’d take out on your mobile residence and the kind I’d take out on mine will likely be the difference in amounts. Since single family homes tend to be a lot more expensive, there’s just simply more equity to borrow.
So let’s talk about what you’ll have to go through as part of applying for a bad credit mobile home equity loan. First the lender will want to know what year your home was manufactured in. That’s logical enough, given the fact that mobile homes are going to deteriorate more over time than a single family home would. The older your home, the lower its value is likely to be, which means there won’t be as much equity for you to cash out.
The bank will also want to know exactly how bad your credit is. There’s a difference between having missed a few credit card payments and something more major like having gone through a home foreclosure at some point in your life. If you’ve ever had a foreclosure, I’m afraid you’ll find it tough to borrow any of the equity from your mobile home. It just makes you too much of a credit risk. Now, that doesn’t mean that you could never get the loan after going through a foreclosure – you just might have to have a co-signer whose credit is much cleaner than yours.
Another key part of the application process will be how much of a balance – if any – you have on your home loan now. This is where loans on mobile homes are similar to normal mortgages; if you owe too much the bank isn’t going to want to let you increase the total indebtedness on the home by cashing out some of the equity. Hopefully your home is free and clear, and relatively new, so your chances of borrowing a decent amount are increased.
Finally, before anyone will give you a home equity loan for a mobile home with bad credit, they’ll want to know what type of property your home sits on. Is it in a mobile home park? On family property? Other rented land? If your home sits on property you actually own it’s going to be much easier to get the loan you’re looking for.
Be persistent. It’s likely that lending will be tighter from now on, with banks looking more carefully than ever at your income and credit history before giving you any kind of loan. You might have to spend a few months or even a year making yourself look good enough on paper for them to lend you the money.
