Mobile Home Loans

by Mack Bartlett

Now that mortgage providers in the US have tightened up their lending practices so much, most prospective home buyers are going to have to come up with at least a 20% down payment in order to qualify for any kind of home loan at all. Average home prices on a reasonably sized home are almost always going to be over $200,000 – so most people will need upwards of $40,000 to begin their American dream of home ownership. That’s just not realistic. Some are downsizing their dreams slightly by looking into purchasing a mobile home, which means they’re investigating mobile home loans.

What most don’t realize is that mobile home financing isn’t all that different from a traditional mortgage. You’re most likely still going to have to come up with a down payment, have a decent credit score and history, and be able to prove an adequate income to handle your payments.

That being said, mobile home loans with bad credit do exist. The terms aren’t going to be as appealing, and your payment will likely be higher, but you could still qualify for a loan under the right circumstantces. One way to get mobile home financing for bad credit is to ask a trusted friend or relative to co-sign with you. There are some real advantages to doing this.

First of all, if your co-signer has decent credit you’re going to qualify for a more favorable interest rate and therefore a lower payment. Secondly, the credit reporting agencies really favor people whose names are on a mortgage, so your credit score will improve quickly as you make your payments on time.

But what about mobile home refinancing? If you’re already in the process of buying your mobile home and you need to go through the refi process, you’ll find plenty of mortgage companies to help you out. You’ll be able to choose from refinancing your mobile home with cash out, refinancing for a better interest rate, or both. Maybe you had poor credit when you originally bought your home, but several years might have passed and now your fico score has improved to the point that you’re ready to get a new low rate mobile home loan.

The point is you shoud thoroughly research your options and then choose the loan that’s right for you. Make sure you investigate several lenders – competition works on your side in the world of mortgages. Don’t settle for anything less than the best possible interest rate and fee structure.

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