Understanding Mobile Home Financing
Learn about financing options and how to get the best rates for your mobile home purchase.
Financing Options
Types of Loans
- Chattel Loans:
For mobile homes not permanently attached to land. Typically 5-20 year terms with higher interest rates.
- FHA Loans:
Government-backed loans with lower down payments (3.5%) and competitive rates.
- VA Loans:
For veterans and active military. Often 0% down payment with excellent rates.
- Conventional Mortgages:
If the home is on owned land and permanently affixed, you may qualify for a traditional mortgage.
Getting Approved
- Check your credit score (aim for 620+)
- Gather financial documents (pay stubs, tax returns, bank statements)
- Calculate your debt-to-income ratio
- Save for a down payment (typically 5-20%)
Tips for Better Rates
- Improve your credit score before applying
- Make a larger down payment
- Shop around with multiple lenders
- Consider a shorter loan term