Information on Mobile Home Financing

Mobile homes, which are more often called manufactured homes now, can have financing options that are a bit different from traditional homes that are not mobile. However, that does not mean that financing is unavailable; it most definitely is. It just may not be a traditional mortgage.

Differences between a personal loan and mortgage

Much of the financing that used to be available for mobile homes came through as personal loans. This meant that a larger down payment was required, interest rates were often higher and the loan had to be paid back in a much shorter period of time, generally within 15 years. These days, it is possible to get a traditional mortgage for a mobile home. If you buy the land that your home is going to be placed on and have your home put on a permanent foundation, this will usually allow you to qualify for a home mortgage.

Dealer financing or find your own

It is usually in your best interest to secure financing on your own through a bank or credit union. Dealer financing will almost always make your payments higher. You will also be paying a fee to the dealer for obtaining the financing for you.  You can avoid this fee and get a lower rate by finding financing on your own.

Shop around for the best rates

Shop around for the best rates and options for your situation. You do not have to accept financing from the company who is selling the mobile home. You can look around to different banks, credit unions and lenders to find the one that is willing to give you the best deal. However, do not allow too many institutions to run your credit, this can actually lower your score, at a time when you want your score as high as you can possibly get it.