Free Mobile Home Info
Home: Mobile Home Financing: Mobile Home Equity Loans

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:

  1. 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.

  2. 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.

  3. 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. 

  4. 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.  

  5. 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.

Return from Mobile Home Equity Loans to the Home page