Typical Mobile Home Financing And Refinancing Criteria Guidelines

Mobile home lenders have mobile home financing programs available that offer loan products to qualified applicants to purchase a new or used mobile home, or, to refinance an existing mobile home loan. Mobile home loans that are offered for homes that are on rented land such as a park are called chattel mortgages and mobile homes that are situated on their own land and the lender is financing both the mobile home and the land together is a real estate mortgage. Interest rates are typically higher and loan terms shorter for chattel mortgages since the lender is not securing the real estate with the mobile home.

Often, mobile homes that are situated on rented land (chattel financing) have fewer options for financing because the lender is not securing the real estate. Lenders that finance both the land and home together typically require that the home be on a permanent foundation such as a basement or a crawl space.

Typical mobile home financing and refinancing guidelines to keep in mind:

Down payments as low as 5% for mobile homes that are in mobile home parks is available. 5% down payments typically requires credit scores 700 and above.
Typically 3 years of employment is required.
Minimum credit scores of 640 and above for down payment 10% and greater
Debt ratios generally cannot exceed 45% for all debts and 34% for housing, this includes the lot rent if the mobile home is in a mobile home park.
Mobile homes must be built to HUD standards.
Loan terms up to 240 months for used mobile homes and 300 months for new homes, depending on the finance amount and if the home is a single wide or double wide.
Secondary/Vacation home loan programs are available, although lenders will require a down payment of 20%
A mobile home lender will calculate the value of the mobile home by using a book value or an appraisal.
Single wide mobile homes 1994 and newer.
Double wide mobile homes 1976 and newer.
Mobile home refinancing can help reduce your interest rate and to shorten your loan term to help reduce the interest you pay over the life of the loan.
Be sure to ask the lender is the interest rate is fixed and simple interest without any pre-payment penalties.