Mobile Home Equity Loans
Loans for cash out,
home improvement, and debt consolidation on older homes
Mobile Home Equity Loans are either a 2nd mortgage
behind a first mortgage, or a first mortgage that is used for pulling
out equity.
The
term "first" and "second" refer
to the lien position of the loans on title. The first loan
will be
paid first in a foreclosure.
Getting an equity loan on an older Mobile Home
There extremely few lenders who will make a loan
on a mobile home older than 1976. Take this into
consideration when buying an older unit
- they can be hard to finance.
Really the best thing to do is to start calling
lenders and ask them
what they can finance. Make sure you tell them the age of
your home, and if it is a singlewide or doublewide.
Our
recommended lender can lend on homes built in the 1960's and newer -
call them if you live near the coast of California - click here for their info.
Main points to know
Loans for cash out, debt consolidation,
or home improvement all basically fall under the same category of a
mobile home
equity loan. This loan must be a first mortgage (the only one on the
home), and therefore if you have a loan already, this new loan will
need to pay off the old one too. Here are the major things to
know about the
loan and process:
- Equity
- most of the time a lender will let you borrow from 65%
to 75% of the current value of your home. Some lenders will use an
appraised market value. Some lenders will use the book value
from NADA.
- Credit
- Great credit is best, but normal is usually fine too.
Recent lates, mortgage lates, and a previous bankruptcy are
not acceptable. Click here for more
information if your credit is not the best. For
mobile home equity loans, you should have a 680 score or better.
The
higher the score,
the better the rate generally.
- Income
- Mobile Home Equity Loans require you to have some form of income.
You will need to
provide solid proof of the income, such as paystubs, tax returns, bank
statements, and even Social Security or Pension and Retirement award
letters.
- Time
- Usually, to get a loan funded there are many, many steps
involved. Mobile home equity loans can take at least 4 weeks,
given normal circumstances. Most of this time
is due to the appraisal and
title search for the property.
- Reason
for Cash out - You will need to explain what the cash is
for. If debt consolidation then you will likely need to
provide actual statements from your accounts to be paid. If
for Home Improvement, then you will likely need to break down what
improvements you will be doing, how much each is expected to cost, and
who will do the work (you or a contractor).
Where to find Mobile Home Equity Loans
Most Mobile Home Equity Loans are funded by two
types of
lenders. The first type is a nation wide lender like MH
Loans.
Another type of lender is a local bank or credit
union like Community West Bank in California.
We are currently researching all lenders and what types of loans they
do - check back for a list.
What to expect
Expect to provide copies of the following
documentation:
- Two most recent Federal Tax Returns
- Two or more most recent paystubs from all jobs
- Social Security Award letters from the current
year
- Retirement/Pension/Annuity statements
- Two or more most recent bank and asset
statements
- Photo ID
- Rental agreements for any rental property
- Cash out letter and documentation
- Park lease signed by all parties
Your lender should help you through this difficult
process.
If you are not getting good service, shop around!
By Will Cunningham
Additional Manufactured Home Info
Here are some related topics, click on the
underlined words for more information.
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