To finance a mobile home renovation, apply for a personal loan or equity loan from a credit union or your present bank, or borrow funds from trusted relatives or friends, recommends Mark Bower for Mobilehomerepair.com. Some credit unions require an asset such as a vehicle as collateral for secured loans. Choose the option with the most competitive interest rate, and avoid getting a loan with a very high, long-term interest rate.Continue Reading
Avoid taking out a loan that lasts more than five years, because mobile homes tend to lose value significantly compared to traditional houses, notes Bower. A cost-effective option is to perform the home improvement or repair on your own, especially if you have the necessary skills and tools.
A Federal Housing Administration Title I loan is a suggested loan for homeowners with limited equity, states the U.S. Department of Housing and Urban Development. The FHA insures banks and other eligible financial institutions against potential losses, as the lenders use their own funds to provide the Title I loan.
Homeowners may use the loan to pay for a contractor's labor and materials or finance the costs of materials when doing the repair on their own, explains the U.S. Department of Housing and Urban Development. As of 2015, qualifying borrowers are eligible to receive up to $7,500 when taking out a loan for fixing or improving an existing mobile home that is considered real property.Learn more about Credit & Lending