Mobile home loan

As with other forms of mortgages, mobile homes can be overwhelmingly expensive, so you may need assistance in the form of loans to finance your mobile home.

This article will answer every important question you might be asking about mobile home loans.

What is a mobile home loan?

A mobile home loan is a type of home loan you take to finance a mobile home. It is called a mobile home because it can be moved, unlike traditional homes. As the mobile home owner, you do not own the land where your mobile home is; that is why the mobile home is considered your personal property rather than real estate property. If you want to get a loan on mobile now it is really easy.

Due to the fact that you do not own the land, most lenders might not consider these homes to be mortgage houses.

Bad credit mobile home loan guaranteed approval

Getting any loan, especially a mortgage with bad credit, is usually an obstacle to most lenders; fortunately enough, you can now overcome this obstacle. Recently due to the economic recession, most lenders have made it easier to acquire mobile home loans even with a bad credit score.

Evidently, getting a mobile home loan with bad credit depends entirely on your lender.

Lenders set different credit score requirements; therefore, you must choose a lender that suits your needs.

Most lenders who approve loans with a bad credit score will always incur very high-interest rates and have to ensure that you have a stable source of income for paying your loan.

Mobile home with a 575 credit score

Using the FICO scoring system, anything credit score below 600 is considered bad credit. With this, getting a home mobile loan can be difficult, though not entirely impossible. With a 575 credit score, most lenders will require you to increase the down payment by about 10%.

In other words, to qualify for a home mobile loan, you will need to pay a larger down payment, have a stable and substantial financial reserve, and expect to pay a higher interest rate.

How to get a loan for a mobile home

The best loan for a mobile home loan is either the chattel or a personal loan. This is because a mobile home loan is not considered a mortgage. Therefore, your best choice is opting for a chattel loan specifically used to finance a movable/mobile home.

Before applying for a mobile home loan, you must check your credit score. A good credit score will guarantee you loan approval. The next step is to identify your lender; the best lender is the one that offers relatively lower interest rates on loan payments. You can apply for a mobile home loan through online lenders or financial institutions that provide chattel loans.

Mobile loans are now a must in the States.

Further thoughts

The best way to maintain a good credit score is to ensure you pay your loans on time. This, in turn, will reduce your future interest rates when you acquire other forms of loans.