How to find a mobile home mortgage lender?

Finding a mobile home mortgage lender can be more of a challenge than finding a mortgage lender for a traditional home. Mobile homes, or manufactured homes, as they are referred to now, are riskier ventures for lenders, and in some cases, aren’t even considered eligible for mortgages. For example, if the mobile home is truly mobile - i.e. it isn’t on a permanent foundation - then you’ll typically get a personal property loan, rather than a home mortgage loan. Personal property loans for a mobile home is more on par with an auto loan or boat loan than a traditional home loan. That is, you’ll usually have to put at least 10 percent down and have a term of about 10 to 15 years, rather than 30 years. You’ll also pay a much higher interest rate than if you had a mortgage loan.

It’s not all bad, however. Even if you technically get a personal property loan, the interest payments are still tax deductible as long as it’s your primary residence.

Your most affordable option, however, is to get a bona fide mobile home mortgage. Usually, you’ll have to have a manufactured home on a permanent foundation on land that you own. To increase your chances of getting a mobile home mortgage, you should make sure that the mobile home that you are buying is built according to federal HUD standards and was built after 1976.

Finding a Mobile Home Mortgage Lender

Four out of five mobile home mortgage lenders are the retailers themselves. This is similar to getting an auto loan from the car dealership. Usually, managers or owners of the manufactured housing community will handle the sale of the home and the rental of the land for you and help you find financing. However, just as it’s always a good idea to shop around for a car loan, you’ll probably get a better rate if you explore your options on a mobile home mortgage.

Approaching the major banks and lenders for a mobile home mortgage or a personal property loan for your manufactured home is going to be hit or miss. You may find a good deal by calling around to banks in your area, but the most efficient way to find a lender is to work with a mortgage broker. But before you call a mortgage broker, make sure you have an idea of what type of mobile home you are going to buy, whether you will be renting or owning the land and where the mobile home will be located. These are important items for a mortgage broker to understand before seeking out a loan for you.

You might also want to check with your state’s housing authority of FHA office. Many states have programs that sponsor mobile home mortgages, and they can point you in the direction of an approved lender.