What You Should Know About Mobile Home Loans

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Mobile homes are included under the category of real estate. Hence, companies that provide home loans also provide loans on mobile homes. However, the requirements and natures of these loans are slightly different than loans given for fixed homes.

There are two types of mobile home loans available, loans to buy a mobile home with the land and loans to buy a mobile home without the land. When the land does not come into consideration, the finance institutions give a loan for mobile homes in parks, leased lots, family land, or any situation where the home is not deeded as real property. This sometimes includes people who buy manufactured houses and place it on their land until they build another home later.

Mobile home loans are of two types. There are loans that are provided for the home itself; and loans that are provided for the home along with the land on which it is erected. Loans provided for the home itself provide money for the construction, including the costs of all building materials required. These loans do not provide for transportation charges and the taxes involved in it. Loans for the mobile home alone are usually taken by people living in mobile home community parks and other such temporary arrangements. Actually, these loans are deemed highly dubious by lending companies.

Some financial institutions have mobile home foundation requirements that have to be fulfilled in order for the loan to be granted on both owned land or on mobile home parks. One of the requirements is that the wheels, axles, and hitch of the mobile home have to be removed. Another requirement is that the mobile home has to be permanently affixed to one of the following foundations, either a poured concrete support column installed below the frost line, or a poured concrete slab on grade with a floating slab and concrete block piers installed below the frost line.

If you have bad credit and want to own a home, you may want to go this route. Then when your credit has improved and you want to make the move to a traditional style home, you will be better prepared to do so.