Mobile Home Loans

If you want to buy a mobile home or the land for it, there are various finance options available. If you take a loan for a mobile home, you will have to pay a higher interest since the depreciation is greater on mobile homes. The only exception to this rule is with guaranteed loans.

The majority of mobile home loans are personal property loans or chattel loans. These loans consider your mobile home personal property, much like your car and not real estate. The flipside of this is that you do not get any real estate tax breaks.

There is low downpayment on these loans, and sometimes none, however interest rates are high and loan periods are lower than traditional mortgages. If you own the land for the mobile home then the loan period can be longer. In this case, you may also qualify for a traditional real estate mortgage.

One type of loan for mobile homes is the 80/20 loan. A downpayment of atleast 20 percent is necessary. When your owed amount is equal to or less than 80 percent of the home value remember to get the PMI dropped.

Veterans who qualify can get a VA guaranteed loan. These loans are guaranteed by the federal government. There is no downpayment required generally and the interest rate is lower.

FHA loans are advantageous to those with low credit scores. No matter what your credit score you pay the same mortgage insurance rate with FHA loans.