The Auto Auction Group

Although manufactured home financing can be easy to qualify for than a traditional mortgage, there are still qualifications that must be met in order to qualify. Some of the requirements relate to the buyer and his or her credit rating, while others are requirements for the home itself. Here are some of the requirements you should expect to see when attempting to obtain manufactured home financing.

The first requirement is your credit score. Although it is possible to get a loan to purchase manufactured housing without a good credit score, there is still a minimum. This minimum depends on the lender, but it is usually around 580. If your credit score is lower than this, you need to work on bringing it up before you attempt to borrow money to buy a manufactured home.

Manufactured home financing can be a mortgage or a personal property loan, depending on whether the home has a permanent foundation or is set up on a temporary foundation in a park. If you are purchasing a home in a park, then you will be applying for a personal property loan. In most cases, you will need a down payment of at least 10% of the purchase price when you purchase a mobile home this way.

In order to obtain a mortgage loan for a manufactured home, the home must be on a permanent foundation on land that you either already own or are purchasing along with the manufactured home. Most lenders require a small down payment, but the amount is usually less than when purchasing a mobile home with a personal property loan.

No matter what type of loan you are applying for, you will find it extremely difficult to obtain financing if the manufactured home you are trying to buy was made before 1976. There are two reasons for this. First, the standards for building mobile homes changed in 1974, and many homes built before the law went into effect do not meet the quality guidelines for manufactured housing that are currently required.

The second reason that older homes are difficult to finance is that they do not have a long enough life expectancy for the lender to feel comfortable lending money on them. Many of these older homes are getting to the point where they will start having major problems such as leaky roofs and sagging floors. This increases the risk that the buyer will walk away from the home and leave the lender with a piece of junk that can’t be sold for the amount that is owed on it.

You can find out more about financing for manufactured homes at HowToBuyAHouse.org, which is a huge repository of information about all aspects of the home buying experience.