Finance Ray Lam on 01 Jul 2008 04:04 am
What You Should Know About Mobile Home Loans
Mobile home loans are a form of home loans widely found these days. As the name implies, this loan is for mobile homes that can be moved from one place to another.
You will find that these FHA loans do have certain requirements. For example, you must be able to provide a five percent downpayment and have an acceptable credit rating. There are maximum loan amounts and maximum terms. For example, the loan term requirements are 20 years for a mobile home, 15 years for a lot and 25 years for a mobile home and lot. There are many mobile home sellers who also offer financing for their customers. When you go shopping for a mobile home, be sure to ask if the company offers any type of loan program.
The very fact that mobile homes are movable increases their insecurity about the money lent. Many banks and lending organizations have today completely stopped writing loans for mobile homes without land.
Whatever be the kind of loan, none of them are disbursed if the mobile home fails to meet the HUD code of construction. Similarly, it is very difficult to obtain a mobile home loan if the borrower has a bad credit rating.
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.
