Mobile home refinancing explained (USA)

Mobile home refinancing: is it possible? We all know that there are many different deals available to refinance bricks-and-mortar properties, but many people don't know whether or not such deals are available to owners of mobile homes. The good news is that mobile home refinancing is possible. It's possible even if you don't own the land on which your mobile home is located.

To refinance your mobile home through a legitimate lender, your mobile home will almost certainly have to conform to certain requirements. The US Department of Housing and Urban Development (HUD) sets out standards for mobile homes. Most mortgage lenders will require that your home meets HUD standards. All single family mobile homes manufactured since June 1976 are legally required to conform to these standards and display a label confirming this, so HUD-conformity shouldn't be a problem if your home was built after June 1976.

Some states have their own requirements for mobile homes. For example, some states require a state agency to approve all modifications to your home once it leaves the factory. Lenders may require your mobile home to conform to state standards as well as HUD standards.
Mobile home refinancing problems: older properties and bad credit histories

If your home was built before 1976, you have more of a problem. Lenders may refuse you a mortgage loan purely because of the age of your property. You will also be ineligible for Federal Housing Administration mortgage insurance, which also makes you a less attractive lending prospect. It's still possible to refinance your mobile home if it was built before 1976, but the interest rates are usually higher than for newer homes, often too high to make refinancing a viable financial option. The same issues occur with bad credit loans. Although it may be possible to get mobile home refinancing with a bad credit history the interest rates are likely to be incredibly high and often make it unwise to take out a loan at all.

Mobile home refinancing deals vary depending on many factors, including the value of your mobile home, its location and your credit rating. As you might expect, the better loan rates usually go to people with newer, bigger homes. Insurance is also something you need to consider. You should take out insurance to cover your ability to make repayments and to cover your mobile home in the event of damage or destruction.

 

 

 

 

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