Q:

What is an effective way to obtain financing for used mobile homes?

A:

Quick Answer

An effective way to obtain financing for used mobile homes is to have enough money for the down payment and to choose a home that meets certain standards, according to the U.S. Department of Housing and Urban Development. It helps if the home is the primary residence of the borrower.

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What is an effective way to obtain financing for used mobile homes?
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Full Answer

If using a HUD program for purchasing the home, it is important to show sufficient income to repay the loan and to keep up with other expenses, says HUD. Having a predetermined site for the used mobile home helps determine financing. The site can be on leased land in a manufactured home park as long as the park and the land lease contract meet Federal Housing Administration rules. It is also acceptable to put the home on private land that is owned or rented by the applicant. Standards the home must meet include sufficient water availability and sewage disposal.

The down payment, or consumer deposit, on the home should be at least between 5 and 10 percent, states About.com. Loans on mobile homes in communities tend to be more costly. They are often called chattel loans and are treated like personal loans, with higher interest rates. However, financing a mobile home on land owned by the borrower functions in the same way as financing a site-built home.

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