Mobile homes are a fantastic option for those who want an affordable and easily customized home. Double wide mobile homes (and even triple wide homes) are spacious, and luxury mobile homes are extremely sophisticated. Still, there is one problem that can arise: mobile homes can be fairly difficult to finance. Though mobile homes are usually less expensive than conventional homes, many banks shy away from mortgage lending.
Purchase the Lot First or At the Same Time
Many lenders will not extend any form of mortgage loan to you for a mobile home unless you already own the lot that the mobile home will go on -- or are financing the lot at the same time. This is easy to understand. Otherwise, you could fall behind on the mortgage loan for the land, and the home would need to either be destroyed or relocated and sold. Additionally, many lenders do not feel comfortable lending money to those who already have a significant amount outstanding.
Try to Go Directly through the Dealer
In some ways, the purchase of a mobile home can be more similar to purchasing a car than purchasing a house. You can often go through the mobile home dealership for financing. Many mobile home dealerships operate closely with banks to help with loans. Others will be able to give you advice or pointers regarding qualifying for a loan.
Inquire With the FHA Program
If you're a first-time home buyer, you can go through the Federal Housing Administration's first time home buyer program. FHA loans are advantageous for a few reasons: they require limited down payment, they have low interest rates and they are fairly easy to qualify for. However, they are capped and do have certain other requirements. As of 2015, the cap is $92,904 for both a lot and a mobile home, and the manufactured home in question needs to meet the Model Manufactured Home Installation Standards.
Find a Cosigner
Finally, if you're having difficulties securing a loan, you may want to start applying with a cosigner. Because mobile home loans are greeted with a higher level of scrutiny, it can help to have someone with a higher credit rating or higher earning potential to help you with the loan qualification.
As with all loans, it does help if you have a good credit history and a solid income picture. If you have impeccable credit, you'll usually find it fairly easy to get a mobile home loan. Just remember that you should start the process a little earlier, to give yourself time to get the best possible deal.