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- A mobile repo (or any type of repossession) will have a huge negative impact on your credit score. A repossession indicates to mortgage lenders that you couldn't make your house payment and a lender had to reclaim the property. Various factors contribute to mobile repossession such as job loss, illness or poor budgeting. Better credit habits can help fix your credit score and eventually reverse any credit damage. Paying remaining bills on time each month and keeping low credit card debt are keys to boosting a bad score and getting a home loan.
- The wait period for applying for a home loan after losing a mobile home to repossession varies by lender. But three years after losing a home, you can get an FHA mortgage loan from an FHA-approved mortgage lender. These federal-insured loans help borrowers with past credit issues and low credit scores qualify for mortgage financing in a short time period.
- The qualifications for an FHA mortgage loan are not as strict as conventional mortgage loans. For example, conventional mortgages typically require a 680 or higher credit score, whereas FHA mortgage loans only require a 620 credit score. Other differences include the low down payment requirement for FHA mortgages -- as low as 3.5 percent down. And borrowers can acquire a mortgage with a house payment of up to 30 percent of their monthly gross income. Conventional mortgages cap house payments at 28 percent of monthly gross income.
- While you're able to get a mortgage loan a few years after losing your home with a low credit score, this doesn't guarantee the best mortgage rate. Interest rates greatly influence home loan payments and if you're looking for the best rate possible to lower your house payment, you can postpone buying a new property until the repossession or foreclosure falls off your credit history -- usually after seven years.
Dealing with Credit Damage
Options for Getting a Mortgage
FHA Qualifications
Considerations
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