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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:

Mobile Home Financing Basics

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. 

(To See Our Recommended Lender  - Click Here)

Rates, Terms, Fees

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:

  1. Are you a Broker or a Direct Lender?
  2. What are your costs and fees?  Can you guarantee them?
  3. Is there a pre-payment penalty?
  4. If I have a question after the loan is funded, who do I call?
  5. 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.

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

Additional Manufactured Home Info

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