If you are looking at taking out a new mobile home loan, then here are a few good tips that will help you not only get a loan secured but that will also help you get the best interest rate and terms on the deal. Remember, when it comes to financing, knowledge is key – and knowing what to do before you go and talk to a financing company can save you hundreds of dollars in each month in fees and higher interest rates.
The first thing that you need to do when you want to purchase a mobile home on credit, or refinance your current mobile home, is that you need to make yourself appear to be immobile, or permanent. This is one of the biggest struggles that banks have with lending to owners of mobile houses – they are by nature mobile and as such the bank is taking on risk that you won’t be there after you default. With a regular home mortgage the house doesn’t move, so it’s easy to come after the person/house to get their money.
So, there are two things that you can do to reduce this risk the bank takes, and therefore qualify for one of the better mobile home equity loans. The first one is to own the land on which the mobile home stands. If you own the land you are much less likely to walk away from it in case of default – you will want to sit down with the bank and do everything that you can to keep your land and home. If you rent, it’s just that much easier to pack up and leave with everything in the middle of the night. The second thing you need to do is to place the mobile home on a solid foundation and take the wheels off. While the home is still technically mobile, it is much harder to move when it is on a foundation.
By following these two simple tips you should be able to get a great mobile home loan.
