Mobile Home Equity Loans

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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

Most lenders will not finance older homes, these are homes older than 1976 in most cases, however, in other cases it could be 1983 or even newer. 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 date of manufacture 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 - Your credit is very important to the lender. This will show them what kind of a person you are in regards to your other creditors and if you pay them on time. 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. In some cases for self employed borrowers there may be a stated income loan available. A quick way to find out if you make enough money is to take your gross income and multiply it by 45%. This figure will tell you how much a lender will allow for all of your debts, the new loan, and the space rent.

Time - Usually, to get a loan funded there are many, many steps involved. Mobile home equity loans can take at least 3 weeks and up to 6 weeks to fund , given normal circumstances. Most of this time is due to the appraisal and title search for the property. Additionally, the lender has many other loans in process and cannot just work on your loan exclusively.

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 and look out for

First, you are a big part of the process. You must provide all the information to the lender in the form of documentation. That means copies of the following will be needed:

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

The lender should mail to you a Truth-In-Lending and Itemization of Amount Financed disclosures which will provide you with the interest rate, APR (yes, these are different), fees, and terms. You will need to sign these and mail them back, however, all of these are estimates until the final loan documents are generated. Don't think you are done when you first get these in the mail. Just call your lender and have them walk you through the forms on the phone - you must NOT be confused about any of the numbers.