There are several mobile home financing options for poor credit property owners. Once you decide on the type, location, and size of your mobile home, you can begin exploring the available financing options to pay for your mobile home. Luckily, there are comprehensive home financing options available no matter your current credit position, rating, or monthly cash flow. With the best bad credit mobile home financing options, you can easily begin making affordable payments on your mobile property. Read on to learn more about the essential mobile home financing options for poor credit property owners.
Fixed Rate Loan
A fixed rate loan is one of the most popular, and commonly used poor credit mobile home financing options. Fixed rate loans offer a single interest rate and comprehensive monthly payments that are consistent over the course of the loan. In most cases, fixed rate loans on mobile or modular homes are roughly fifteen to thirty years. Like many other home financing options, a fixed rate loan will require a down payment. At the same time, a poor credit rating will likely lead to higher interest rates. However, with a fixed rate financing option, you can guarantee that your loan interest rates and monthly payments will remain consistent over the course of repayment.
FHA loans are an excellent resource to help poor credit mobile home owners finance their property. Certified FHA loans are issued and insured by the Federal Housing Administration. These loans are traditionally best suited for buyers with a poor credit rating and do not have access to a large down payment. To access a US Federal Housing Administration loan for your mobile property, you need to look for an FHA-approved lender in your area. These loans are commonly available to property owners with a verifiable income, a FICO score of 580 to 640, an established credit history, and the ability to make a minimum of a 3.5% mobile home down payment. At the same time, the mobile home you are looking to finance must not exceed the loan limits that are predetermined by the FHA.
Personal loans are a common resource to help poor credit mobile property owners finance their home. Mobile homes are often much cheaper than the cost traditional homes. Therefore, you may be able to finance the purchase of your property through a personal loan instead of a specialized home mortgage. A major advantage of personal loans is their flexibility. These types of loans can be used for almost any purpose. At the same time, personal lenders traditionally write loans of $25,000 to $50,000, however, you can likely find loans for more depending on the financing institution you choose. To obtain the best financing options for your mobile property, consider taking out a poor credit personal loan.
Veterans Affairs Loans
Veterans Affairs, or VA home loans are incredibly popular resource to finance the cost of your mobile property. For veterans of the United State military, a VA loan is an excellent alternative to traditional bank loans. Veterans that qualify for VA loans can obtain a financing option without any mortgage insurance requirements or needed down payments. These loans are government-backed, therefore requiring you to meet several essential requirements. For example, the home must qualify as your primary residence. At the same time, to qualify for a VA loan, you must have served at least six years in military reserves, 180 days during peacetime, or 90 consecutive days during wartime. If you meet the qualifications, a VA loan is an excellent way to finance the cost of your mobile home.
United States Department of Agriculture Rural Development Loan
Rural development mobile home loans processed by the United States Department of Agriculture, or USDA, are an excellent way for poor credit mobile home owners to finance the cost of their property. Similar to loans processed by the FHA or VA, USDA loans are government backed. These loans are specifically designed and offered for borrowers designing homes in rural areas. For rural mobile homes that qualify with USDA requirements, the government will finance 100% of the home cost. Beware that in order to qualify for this loan, you debt to income ratio cannot exceed 40%. As with the Federal Housing Administration, you will additionally be required to purchase mortgage insurance on your mobile home.
There are several poor credit mobile home financing options to help you make affordable payments on your mobile property, even if you do not have a good credit score. One of the most common financing options is a traditional fixed rate loan. You can additionally find loans issued by the US Federal Housing Administration. At the same time, you can always take out personal loans for relatively low mobile home amounts. If you served in the United States Military, you additionally likely qualify for mobile home loans issued by the US Department of Veterans Affairs. Even more, for homes in rural areas, you can access USDA rural development loans. Consider the points mentioned above to learn more about the essential mobile home financing options for poor credit property owners.