Mobile homes are also under the category of residential homes. So it falls under one of the variety of real estates. So the financial institutions which provide loans for homes can also provide loans for mobile homes. But the loans for mobile homes are slightly different in requirements when compared to fixed home loans.

The rules applied to mobile home real estate loans differ depending on the lender. Some mortgage companies want the mobile home to be as much like a standard home as possible, requiring that the home be on a fixed foundation. This means that the items which make the home mobile be removed such as the wheels, the hitch and axles, without which such a home cannot be transported off the designated property. Some lenders go as far as to require that the mobile home also be placed on a concrete foundation which makes it even closer to matching the specifications of a typical home. This is not a typical requirement but it may be one you’ll run into during your search for a mobile home loan.

Financial institution offers two types of loans to mobile homes. They are loans for only the home alone and home along land where it is installed. When the loan is for home alone, then the loan will bear all the cost of building material but which does not include transportation cost and other taxes. But usually people take loans only for their mobile homes.

Unfortunately, the very nature of being mobile makes mobile home loans a bit of a risk for lenders. Banks like to know that the property they are funding will stay where expected, and mobile homes have the ability to move anytime. This uncertainty has lead to many lenders to no longer carry mobile home loans which are not inclusive of the land on which the home will sit.

When we tried to get a loan for mobile homes along with the land, it was much easier when compared to getting loan just for mobile homes. The loan amount is higher but it does not provide for taxes as the loans for home alone.

In any case, the mortgage lenders refuse to release the loan if the mobile home purchaser does not adhere to the HUD rules of building. Also, he has to have a healthy credit score to be able to avail the mobile home loan. Having a healthy credit score is one way of assuring the mortgage lender that the borrower is not likely to default in repayment.

Mortgage lenders usually extend 75 to 90% of the entire expenditure needed to construct a mobile home. The repayment period of mobile home loans are normally in excess of ten years.

Graham McKenzie is the content coordinator for a leading South African leading Homeloans and Bond Origination portal which provides access to FNB Homeloans.

Related Posts:

• Options for Mobile Home Park Loans
• A Glimpse At Home Loans
• Information About Home Mortgage Loans
• Retirement Homes In Payson Arizona
• All About Equity Loans and How To Choose