5 Unexpected Facts About Getting Mobile Home Loans
Are you thinking about getting real estate while being on a tight budget? Then mobile home loans may be an option to consider. Mobile homes are affordable and generally require lower taxes than traditional homes which can help you save more money down the line. Ready to go mobile? Then keep on reading to learn some facts about mobile home loans that you may not have heard about before.
Here Are Some Interesting Facts About Mobile Home Loans
1. Bad Credit Doesn’t Automatically Disqualify You From Getting A Mobile Home Loan
Sure, a credit score does matter when taking out a loan, and mobile home loans aren’t an exclusion. However, having a bad credit doesn’t automatically mean that you CAN’T get a loan to purchase a manufactured home. What it means is your credit history may affect what TERMS your loan will come with, such as:
- The minimum down payment amount
- The length of time you need to pay back the loan
- How high or low the interest payment will be.
2. There Are Different Kinds Of Mortgages For Mobile Home Loans
The type of mortgage you can get depends on whether you own the property where you will be parking your mobile home.
If you own the property, the mobile home is treated like any other kind of real estate. You get a traditional mortgage, and any housing regulations or programs apply to you as well. So, you can get FHA insurance, and are covered by the state foreclosure and repossession laws.
If you don’t own the land – either you lease it from another person or plan to use a mobile home park – then the mobile home is viewed as a “personal moveable property.” It’s in the same category as boats or heavy equipment like bulldozers.
You will then have to apply for another type of mobile home loan: chattel mortgages. Unlike traditional mortgages which place a lien on the property title, the mobile home acts as security for the loan. According to the Consumer Financial Protection Bureau, more than 40% of mobile homes are financed through chattel loans.
3. You Can Use A Personal Loan To Buy A Mobile Home
Since mobile homes are a lot more affordable than traditional homes, it may be possible to buy one through a personal loan. Unlike home loans or car loans which are tied to a specific purchase, personal loans give you the freedom to use the money in any way you wish.
Some people actually prefer this type funding over a mortgage, because it’s faster and involves less paperwork. You also avoid escrow or appraisal fees.
Personal loans don’t use your mobile home as the collateral, but you will have to provide other financial information to prove your ability to pay off the loan. That information will also determine the loan amount you qualify for.
4. You Can Ask The Government To Insure Your Mobile Home Loan
The government doesn’t grant home loans, but it can insure your loan to help facilitate its approval. The maximum loan amount is $64,800 and the maximum loan length is 20 to 25 years. To qualify for the loan, you need to have at least 2 years of employment, and your total debt should be less than 40% of your income. You can find the full list of their criteria and a list of accredited lenders on the official US government benefits page.
What To Do If You Get A Mobile Home Loan And Suddenly Face An Emergency
Emergencies do happen, and it’s better to be financially prepared for it. So, what do you do if a family member gets sick, or the truck you use for your business breaks down? You can pawn your title for cash at Cash Cow in Louisiana and get up to $1,400 instant cash with title loans.
What Are Title Loans?
Title loans use your vehicle title as collateral. This can be a car, truck or van that is registered under your name and is lien-free (which means that it is fully paid for and does not have any outstanding loans or judgments against it. Title loans don’t require perfect credit and neither do they affect your credit score which makes them an option when you need cash on short notice. And if you believe that it’s the right option for you at the moment, then look for “car title loans near me”.
How Do I Find Car Title Loans Near Me?
There’s no more need spending hours and hours googling “car title loans near me”, as Cash Cow has many title loan locations throughout Louisiana. All you need to find the nearest storefront is visit the Locations Page on our website, select the closest store location, and submit a short inquiry to get started.
Get Started Today!
Need emergency cash now? Explore the “car title loans near me” function on our website. Don’t hesitate to get in touch and ask questions - we’ll be happy to explain more about online title loans, answer your questions, and walk you through the final steps.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.