Expert Advice On Mobile Home Loans

Mobile homes are included under the category of real estate. Hence, companies that provide home loans also provide loans on mobile homes. However, the requirements and natures of these loans are slightly different than loans given for fixed homes.

There are two types of mobile home loans available, loans to buy a mobile home with the land and loans to buy a mobile home without the land. When the land does not come into consideration, the finance institutions give a loan for mobile homes in parks, leased lots, family land, or any situation where the home is not deeded as real property. This sometimes includes people who buy manufactured houses and place it on their land until they build another home later.

The very fact that mobile homes are movable increases their insecurity about the money lent. Many banks and lending organizations have today completely stopped writing loans for mobile homes without land.

It is comparatively easier to get a loan for a mobile home with the land on which it is installed. These loan amounts are higher, because they also provide for the price of the land. Again, these loans do not provide for the taxes that may go along with the land.

Financial organizations normally provide 75 to 90 percent of the total cost of building the house. Mobile home mortgages are usually long-term mortgages for periods generally above 10 years.

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