The Reasons Mobile Home Loan Finance is Unique

With a mobile home you can literally put wheels on the building and take off with it, and this increases the risk of the loan compared to a household on a foundation. This is exactly why many traditional home loan lenders and brokers don’t want to work on mobile household loans. Another issue with mobile household loans is that they are considered personal property, not real estate. Therefore, financing a manufactured household loan apart from the land beneath it is similar to purchasing a car or RV.

Mobile homes are manufactured off site, so they are not the same as a standard stick-built home. The laws concerning the financing for mobile household loans deviate from state to state, so it is very vital to dig out sure the lender or home loan broker is compliant with your state laws, and is licensed to lend the funds to finance or refinance a manufactured household loan, known as a chattel mortgage. Knowledgeable lenders that have experience in Manufactured Home Loans will be able to respond to questions in regards to the laws and regulations in a specific state. The costs associated with refinancing your home mortgage should be similar to the fees that are paid when financing a mobile household purchase.

Most lenders who specialize in Mobile household loans treat them similar to conventionally built homes and will think about refinancing a loan for manufactured homeowners who already have built equity. Why would someone consider refinancing their home? There are some really favorable reasons to refinance a manufactured home; lowering the current home loan interest rate and monthly home loan payment, paying for children’s education tuition, paying down high interest credit cards and auto loans, or making improvements to keep the worth of the home.

Refinancing a mobile household is essentially acquiring a new loan with better terms to pay off a present loan, and it usually has at least one of many benefits. If you are currently in a situation where you can afford your monthly payments, then refinancing your mobile home with a lower interest rate could allow you to pay off your loan sooner, shorten the length of your loan, or easily allow additional principal payments towards the principal balance of your loan from time to time. Financing for mobile homes is available for manufactured homes in space rent parks, parks where you own your own land, co-op parks, and manufactured homes located on privately owned land.

Some lenders like California Manufactured Home Finance, offer a low, flat rate fee, if you are looking to refinance with the lowest fees possible. Most borrowers have the option to go ahead and pay the fee(s) up front, but you can also include the fees into the new loan amount and keep out of pocket expenses as low as possible. Just like a traditional household loan, borrowers can also “buy down” their interest rate. To do this, borrowers must pay “points”. Points are additional fees that are paid at the time of closing to the lender that is financing your new loan. Usually a point is considered one percent of the new loan amount.

Why would someone consider refinancing their mobile home? Lowering the present mortgage interest rate and monthly home loan payment, paying off high interest credit cards, are just a few.
JD Evans is an industry expert in mobile manufactured home loans. He currently manages manufactured home mortgage refinance activities in California.

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