Manufactured home loans for prospective homebuyers with bad credit

If you’re suffering from poor credit and thinking about buying a manufactured home, then you can go for a bad credit manufactured home loan. Manufactured home loans for people with bad credit are now being offered by a number of mobile home lenders.

These loans are easy to get and can help you boost your credit score as well. Many prospective homebuyers’s who can’t buy traditional homes due to their credit problems frequently select manufactured homes. A bad credit mobile home loan has some similarities with a conventional mortgage loan.

How can you get bad credit manufactured home loans?

Manufactured homes or mobile homes are normally financed like personal loans instead of real estate loans. The financing procedure is similar to that of a television or a car. However, due to the growing popularity of mobile homes, financing of mobile homes has achieved plenty of market.
To get a manufactured home loan, you typically need to have a good credit. At present, people with poor credit scores can qualify for these loans at a somewhat higher interest rate. Nevertheless, you would need to substantiate that you have a steady source of income and repayment ability to qualify for a bad credit mobile home loan. Lenders might necessitate you to own the lot where the mobile home is to be placed.

There are various lenders that offer loans for both the mobile home and the lot. On the other hand, there are lenders that just offer loans for the mobile home where you have to arrange for the lot by yourself.
Options for bad credit mobile home loans

The package for mobile home financing comes with various features such as adjustable or fixed interest rates, single permanent construction loans and finance of up to 95% of the home value. You can get affordable rates for short-term financing. In addition, you can get construction plans designed as per your convenience.

One of the options for financing mobile homes is the single permanent rate or one time close construction rate. This is a single step program and if you go for this option, then you can obtain a fixed interest rate throughout the construction period. Once the construction is complete, this would change into a permanent loan.

If you go for two-step option for financing mobile homes then you can take out a loan of up to 90% of the value of a vacation home and up to 95% of the value of the permanent home. This is derived from the prime rate throughout the construction period and would remain for a construction period of one year.

The third mobile home financing option is the lot loans. The lot loans are offered to people who have discovered the location to fix the manufactured home but are still to construct the home.