To secure a mobile home loan with poor credit, first determine your credit score through the three major credit bureaus - Transunion, Experion and Equifax, as SFGate advises. If your score is below 620, you need to make a 20 to 60 percent down payment on the mobile home's purchase price. Then, consult a professional credit counselor for advice on purchasing a mobile home and improving your credit score, because you pay a higher interest rate with lower credit scores.Continue Reading
A low credit score is not the only factor that makes a loan application risky, as LoanSafe.org explains. Filing for bankruptcy, having had a home foreclosed on, making late payments and defaulting on a loan also reflect poorly on credit worthiness, but poor credit doesn't necessarily prevent individuals from securing a loan to purchase a mobile home.
However, prepare to pay a higher interest rate if you have poor credit. Additionally, you need to purchase the land the mobile home sits on because you do not qualify to buy a mobile home in a park where you must pay rent on the land with a low credit score, according to LoanSafe.org. Certain mortgage lenders specialize in these sub-prime loans, such as 21st Mortgage, and you may also want to consider a HUD loan.Learn more about Credit & Lending