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Bad Credit Mobile Home Mortgage Loan

A person who has bad credit can get a mortgage loan on a mobile home if they are willing to shop around.

The main difference a person with bad credit will see when getting a mortgage on a mobile home will be a higher interest rate. Since the lender is taking more of a risk by loaning to a person with bad credit they’ll want a better return. This usually translates into a higher interest rate and stricter terms on the mortgage.

Most borrowers will have to go to a lender that specializes in making loans on mobile homes to get a loan. Fortunately there are many companies that underwrite mortgages on mobile homes and some companies that specialize in mortgages for mobile home owners with bad credit.

Mobile home loans with bad credit

The reason some lenders won’t write mobile mortgages is that mobile homes can be moved. This means there’s a possibility the home could be moved away so the lender couldn’t foreclose on it.

Another reason many lenders don’t like to write mobile home loans is that there may not be real associated with a mobile home. Since real property is usually used as collateral in a mortgage there is less security for the loan. If only the mobile home is being used as collateral a lot less money will be involved.

It is usually easier for a person with bad credit to get a mortgage on a mobile home attached to real estate. Getting a mortgage on just a mobile home or a mobile home located in a park owned by someone else can be difficult.

Where to look for mobile home mortgages

Two of the best places to seek mortgage financing for mobile homes are with mobile home dealers and manufacturers. Mobile home makers know that getting these structures financed can be difficult so many of them provide financing similar to that offered by car manufacturers. Many mobile home dealers also offer financing similar to that offered by car dealers.

One advantage to seeking financing from the dealer or manufacturer is that those entities are much more likely to work with individuals with bad credit. Since there is a piece of collateral that can be repossessed involved, the mobile home itself they might be willing to ignore bad credit.

Mobile home buyers with bad credit may face higher interest rates and stricter terms on a loan. Since dealers and manufacturers are taking a risk by financing some people they will want a higher return.

Other places to find mobile home financing

There are quite a few online lenders that issue mortgages on mobile homes. Many of these lenders specialize in bad credit loans and could be willing to work with those with bad credit. Not every lender operates in every area, however.

Another potential source of financing is mobile home park owners. Some owners including big companies that own parks are willing to underwrite mortgages for residents. Owners maybe willing to give mortgages people with bad credit, because they loose money when spaces sit empty.

Private individuals who are trying to sell mobile homes maybe willing to carry mortgages for those who buy mobile homes from them. A person who hasn’t been able to sell a mobile home may be more willing to carry a mortgage on it.