How to Finance an Older Mobile Home

Determine how the mobile home is classified to secure financing.

Financing an older mobile homes begins by determining if the mobile home is considered real or personal property. If the mobile home has a transferable title, like a car, it is treated as personal property for financing purposes. On the other hand, a home with permanent foundation that meets U.S. Department of Housing and Urban Development (HUD) specifications with no title, qualifies for financing as real property. Financing an older mobile home generally requires a down payment, based on the loan type.

Step 1

Locate the title or previous mortgage to find out if the older mobile home is considered personal or real property. Also, an appraisal on the mobile home should provide the property type. How the mobile home is classified affects what type of loan you should seek to finance the home.

Step 2

Contact a bank or mortgage company for mobile home financing. Financing the mobile home as real property is possible though several types of loans available from a mortgage broker. These loans provide lower interest rates, but the mobile home must meet the Model Manufactured Home Installation Standards set forth by HUD to be financed as real property.

Step 3

Visit a bank in your area to request financing for an older mobile home classified as personal property. Local banks provide in-house financing that does not require the approval of an outside underwriter, which benefits borrowers seeking loans for older mobile homes. Provided you have a good credit score and steady work history, the bank has flexible options for financing an older mobile home.

Step 4

Gather your personal documents, such as tax returns, income statements and employment verification, and complete an application for the lender. Supply the lender with copies of your information and any additional documents requested, such as the title if it is personal property or a previous appraisal if it is real property.

Step 5

Complete the financing of your mobile home by allowing the lender to guide you in the loan process. He contacts the companies to perform a title search and appraisal. When the required inspections are done, sign the documents and complete the financing.

Tip

Be prepared for the lender to check your credit and work history when applying for a loan.

references & resources