Mobile Home Loans

FHA stands for Federal Housing Administration and is a part of Housing and Urban Development, or HUD. If you’re in the market for a mobile home, an FHA loan can help you. Because the FHA insures the loan, the lender will usually give you a better deal than they would if the loan was not FHA. Some of the benefits of this type of loan include low down payments, low closing costs and easy qualifying for all types of credit.

There are two different loan programs available. One of them is for people who own their land, and the other is for people who choose mobile homes that are established in parks. Under the Title I loan program, lenders that are approved for the FHA program offer funds to buyers who meet eligibility requirements. Requirements include the borrower’s credit rating, income and their ability to repay the loan. Title 1 mobile home loans are not grants, and are not provided by the FHA, only insured by them.

A Title 1 loan can be used to buy a mobile home, a lot on which to place a mobile home, or both. The home must be the primary residence of the person or persons obtaining the loan. There are maximum loan amounts as well as loan terms that must be adhered to, as follows. For a mobile home only, the maximum is $48,600. For a piece of land or lot, the maximum is $16,200, while the maximum for a combination of the two is $64,800. Maximum loan terms for FHA mobile home loans are: 20 years for a mobile home or a single section mobile home and lot, 15 years for a lot, and 25 years for a multi-section mobile home and lot.

Most of the time, you will purchase a mobile home through sellers that also offer financing. If the seller of the mobile home you’re interested in purchasing does not offer FHA financing, they can most likely refer you to lenders that do. Upon your consultation, the lender can educate you on all the details of qualifying and obtaining an FHA loan. The basics of qualifying for a FHA loan are as follows: You must be able to provide a five percent downpayment, proof of income, and a suitable place where the mobile home will be located. This can be either in a mobile home park or your own lot.

One of the best things about FHA loans is the consumer protection that’s offered. You will be required to sign a HUD Placement Certificate that states the home is installed satisfactorily before the money is released to the seller. If there are problems with the home after you move in, you can call HUD for help.

FHA mobile home loans can help you obtain the mobile home that you desire. Because FHA is a branch of HUD, you can rest assured that all quality standards of housing must be met, and that you have an equal opportunity to obtain the funds you need.