Mobile
Home Financing - where and How to get the best Here
is where you can find the ins and outs of Mobile Home Loans
This one page cannot possibly cover all
the
information regarding
Mobile Home loans, so please feel free to click the links (underlined
words) for more detailed information.
Looking for Mobile Home
financing can be stressful unless you know where to go and what to ask.
From this page
you can access all the details on mortgages,
financing, and loans - under these sub-catagories:
Getting a loan on a Mobile Home can be difficult at best. It would seem
that there are not too many lenders out there, but actually there are
plenty. The problem is that the process is confusing and
expensive.
We are here to help! Let us explain how
to navigate this process so that you have a smooth loan transaction
with whatever lender you decide to choose.
Rates:
Historically, rates on Mobile Home Mortgages have always been
in the double-digit range (10% +), however, with added competition,
yes, even in this troubled lending environment, the rates have come
down. Today it is possible to get a rate as low as 4.50%.
It is not uncommon for a well qualified borrowers to get
4.50% to 6.25% depending on other factors. Click here for
more detailed information.
Terms: Most
Mobile and Manufactured Home Lenders will not want to commit to a fixed rate for
longer
than 20 years, and in some cases 25 years. So, most loan
lengths will be 15 years, 20 years.
However, you may find 25 and 30 year loans out
there (our recommended lender has these).
Normally,
the longer term loan options mean some sort of step-up rate after some
time has gone by (like 5 years at a low rate, then 15 years fixed at a
higher set rate), or just like a house loan being fixed for a short
time then adjusting to Prime Rate index plus a small margin.
These 30 year options are referred to as 5/1 ARM or 10/1 ARM
(fixed for 5 or 10 years then adjusting every year thereafter).
One quick note, always get an APR quote from your lender.
This is the Rate + Fees quoted as one number.
Fees: As
you may have guessed, these loans tend to be riskier than other Real
Estate Loans, and therefore the Fees tend to be higher.
Expect to pay 1.75% in origination fees, and
additional
closing costs - for a total amount of 4% of the amount you want to
borrow.
Check out this video on mobile home loans
What to expect when shopping for a loan
Normally, you will find a Mobile Home Lender by
asking a neighbor, a park manager, seeing an advertisement, or looking
on the internet. This is fine, but make sure you ask each
lender these important questions:
Are you a Broker or a Direct Lender?
What are your costs and fees? Can you
guarantee them?
Is there a pre-payment penalty?
If I have a question after the loan is funded,
who do I call?
If I apply for a loan with you, what costs will
I incur if I cancel before the loan is funded?
Now, there is no right or wrong answer to these questions, but once you
know the answers, you will be better prepared to make a decision on
which lender is right for you.
To clarify: Using a Broker
instead of a direct lender is not necessarily bad or good; be aware
that a Broker might charge you more in fees and your rate might be
higher, but they will usually save you time and effort in shopping
around to multiple direct lenders.
The loan process goes like this:
First, you will
contact a lender or broker and discuss what your financing needs are,
what you want to accomplish by getting a loan.
Second, you will need
to officially apply for a loan by giving your name, address, social
security number, and your date of birth - this is enough to run your
credit. You will either give this information over the phone
or fill out an application and send it in (email, fax, or in person).
Third, they will run
your credit and ask for proof of your income, assets, photo ID, park
approval (a copy of your rental agreement or lease), and payment for
the appraisal. They ask for payment upfront because the appraiser wants
to get paid for their work before the loan is funded.
Fourth, once all the
information is gathered, then the file is officially approved by an
underwriter. Don't be suprised if more information and
documentation is needed at
Fifth and final, you
will sit down with a Notary Public and sign the loan documents.
A few days later the loan is funded and closed.
Getting a
loan these days can challenge the most patient person.
Be prepared to gather a lot of paperwork!
Also, this process ususally takes up to 30 days or
more. By Will Cunningham
