Getting a home equity loan on a mobile home can be tricky, but it is possible with the right lender. As more people opt for affordable mobile home living, there is growing demand for financing. If you’re wondering “who does home equity loans on mobile homes?”, this guide will walk you through your options.
Why Mobile Homes Are Different
Mobile homes are classified as personal property not real estate. This means they do not appreciate in value like a conventional stick-built home. Banks see them as higher risk for lending because mobile homes depreciate over time. It’s difficult to build equity.
Lenders attach a higher interest rate to mobile home loans to offset the risk This results in slower equity building for homeowners Many conventional banks avoid mobile home lending altogether due to the risk and perceived complexity.
Requirements for Mobile Home Equity Loans
Lenders willing to provide equity financing on mobile homes have strict requirements:
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The home must have existing equity The first mortgage balance should not exceed 80-90% of the home’s value
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The mobile home must be a certain minimum size, usually double-wide or larger.
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The homeowner must own the land the home sits on.
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The mobile home must be classified as real property, not personal property.
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It must meet all state regulations for permanency.
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The home should be less than 20 years old in most cases.
Meeting these requirements qualifies borrowers with good credit for the best rates.
Top Lenders for Mobile Home Equity Loans
While regular banks shy away, there are lenders who specialize in mobile home equity loans:
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Credit Human offers up to $25,000 cash-out for qualifying multi-section mobile homes less than 20 years old, with 65% loan-to-value ratio.
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Cascade Loans has programs for triple, double, and single-wide mobile homes. Speak to a professional for eligibility requirements.
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White River Credit Union offers 80% loan-to-value ratio loans. Home must meet specifications like permanent foundation and minimum age.
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Manufactured Nationwide is a mortgage lender offering various mobile home equity loan and refinancing programs.
These lenders understand the unique nature of mobile homes. They can advise what financing options match your particular home’s specifications and location.
Borrowing Alternatives to Explore
If you don’t qualify for a home equity loan, consider these alternatives:
Personal Loans
Personal loans up to $50,000 are easier to obtain than home equity loans. Lenders like Upgrade, Upstart, and Axos Bank offer online applications with fast approval decisions. The money can be used for anything, not just home improvements.
Cash-Out Mortgage Refinancing
Refinancing your existing mortgage at a lower rate, while taking cash out, is another option. You can still deduct mortgage interest, unlike home equity loans under new tax laws.
Top lenders include 21st Mortgage Corporation, Triad Financial Services, and Manufactured Nationwide. Comparison sites let you get quotes from multiple refinancers at once.
Tips for Securing Mobile Home Financing
- Have good credit score above 700
- Steady income to cover existing and new loan payments
- Home ownership of land underneath mobile home
- Home meets all permanent foundation requirements
- Shop multiple specialized lenders to compare loan terms and rates
The Bottom Line
Obtaining financing for a mobile home can be difficult, but specialty lenders exist. They understand the unique nature of mobile homes versus conventional housing. With good credit, steady income, and a properly titled mobile home that meets permanency requirements, equity loans or refinancing are possible.
Personal loans offer an easier borrowing option for those who don’t qualify for home equity loans. And refinancing your existing mortgage to take cash out is another alternative. With the right lender, suitable loan programs are available to tap your mobile home’s equity.
Manufactured Home Loans in California Mobile Home Parks
In Park Mobile Home Loans; California has the highest value mobile home parks in the nation. Its important for our clients to get the best financing. Mistakes can be costly.
Thousands of California families have trusted us with their manufactured home loan. In park manufactured home lending is different.
Manufactured Home Equity Loans in Mobile Home Parks.
Exclusive manufactured home equity loans. Now offering cash out, debt consoldation, renovation lending program for manufactured homes in mobile home parks and approved co-ops.
MH Lender Factory Built Finance is now offering a mortgage home equity loan program for manufactured homes that are 25 years old or newer in land lease parks and approved cooperative communities.
About Home Equity Loans for Mobile Homes
Where can I get a manufactured home equity loan?
Traditional banks and credit unions are often the go-to choice for homeowners seeking home equity loans. Many of these financial institutions offer loan programs for manufactured homes, although the availability and terms may vary. Here’s what you need to know about obtaining a manufactured home equity loan from traditional banks and credit unions:
What are the requirements for a mobile home equity loan?
In most cases, the following requirements must be met before a mobile home equity loan or line of credit is approved: There must be equity in the home, meaning the first mortgage is no more than 80-90% of the home’s market value. The home must be double-wide or larger (in some cases, at least 600 square feet).
Does M&T Bank offer home equity loans for mobile homes?
If you obtained a mortgage for your mobile home, consider checking with your original lender to see whether it offers HELOCs or home equity loans for manufactured homes. We’ve researched three companies worth considering. M&T Bank offers the M&T CHOICEquity line of credit.
Can you get a mortgage on a mobile home?
Yes, many banks and credit unions finance mobile homes on land. These are usually considered real property loans. Some government-backed loan programs, like FHA Title II loans and certain VA loans, also allow for the financing of mobile homes along with the land they sit on. Can you get a mortgage on a manufactured home?