How do you finance a mobile home with bad credit?


Quick Answer

To finance a mobile home with bad credit, review your credit score or rating to determine the areas you need to fix. Make a 20 to 30 percent down payment on a mobile home to increase the chances of getting financing from a lender, and consider applying for the special loans to buy a mobile home that the U.S. Department of Housing and Development provides, suggests SFGate.

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Full Answer

Personal loans from friends and chattel loans are viable sources of financing, says Mobile and Manufactured Home Living. You can also get a long-term loan with the mobile home as security. If you have income limitations and qualify for a special mobile loan from the U.S. Department of Housing and Development, look for a dealer who complies with the state laws and installation standards for manufactured or mobile homes, states SFGate. Enlist the help of a credit professional to assess your credit position and get recommendations on feasible financing alternatives.

If you have poor credit, expect to make a higher down payment to secure financing, notes Mobile and Manufactured Home Living.As mobile homes tend to depreciate, lenders are more likely to finance your purchase when you make a significant down payment, explains SFGate.

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