Mobile Home Lenders

Differences between mobile home mortgage lenders and traditional home lenders explained.

More than 19 million Americans live in mobile homes today, a real indicator for the need for affordable housing. Because mobile homes are much different than traditional homes, the need for specialized mobile home mortgage lenders has become imperative. The terms are much different, and often the rates and overall cost can be as well.

If you’re shopping for a new modular or mobile home in an established community, don’t feel pressured to take the first financing you can get, which is usually offered by the builder. Just because you purchase your home in a community does not mean you must take their financing. Shop around for mobile home mortgage lenders who may be able to give you more flexible terms. Whether you own the land or not can also have a big effect on what kind of mortgage you end up with, so be sure you communicate this to the mobile home mortgage lenders that you speak to, as it can affect your tax rates and other things as well.

The rates for this type of home ownership tend to be higher than for those living in traditional homes. The reason that mobile home mortgage lenders usually offer a higher rate is because this type of housing usually poses a bigger risk to the bank. Since the home in essence is “mobile,” the bank sees their collateral as potentially disappearing if the homeowner enters times of trouble. Sometimes the type of loan will be different as well. Instead of a mobile home owner getting a mortgage, they may only be eligible for a personal property loan instead, much like for a car or boat. This varies per lender as well as per state law, so be sure you find out what you qualify for. There are a great deal of mobile home mortgage lenders out there, so be sure you check with as many as possible to ensure you’re getting the best financing available.