Obtaining a loan for a mobile home is much easier than many people realize. Some believe that lenders will not fund manufactured housing on a rented lot, but with good credit and the desire to become a responsible homeowner, you can finance a place of your own. Even if you filed bankruptcy less than ten years ago, you do not have to rent or pay cash. Stop listening to false information and hearsay, and start the financing process as soon as you find housing that you desire. Use the following information to find out what lenders typically need, and have your papers ready. Some of the following requirements apply to everyone, and others depend upon your specific situation. If you are on top of it all, you can realistically obtain financing in less than a week.
Some lenders might require more or less than what is listed here. Your mobile home community manager can suggest a specific lender and help you begin the financing process. This information is meant to give you an idea of likely requirements. Contact your financier for a detailed list of what they require for final approval.
Begin by Applying for Park Approval
If you cannot obtain park approval, it is pointless to begin the financing process – unless of course you will be moving the home to your land. Before filling out a loan application, obtain park approval. Typically they will not accept residents with a felony or an eviction. Also, many allow pets, but within limits. Learn the rules before committing to a loan or you might have to give up a furry family member.
Your Most Recent Federal Tax Return and W-2(s) or 1099(s)
If you are self-employed, you will need your most recent 1099 and the accompanying federal tax return. If you are paid through PayPal, you will also need your most recent annual PayPal statement if the final figure does not match the 1099. Others will need their most recent federal tax return and W-2(s).
Every Page of the Most Recent Bank Statement(s)
Your loan originator will most likely want your most recent bank statement. Copy both sides of every page. They want to see current deposits.
Proof of Down Payment
When financing a used mobile home, expect to pay 20% down. For example, if the housing is $22,000, you will need $4,400 at closing for a loan of $17,600. You will have to show proof of down payment before the closing. Bring your latest savings statement to prove that you have the funds.
A Homeowner’s Insurance Receipt
You will also need a homeowner’s insurance receipt and details of coverage. You do not necessarily have to pay an entire year in advance, but it will not be applied to the loan the first year. Many insurance companies offer payment plans. Century II in Lowell Indiana offers some of the most affordable rates in Northwest Indiana. Call around to find the best deal in your area. It pays to compare.
A Letter from Your Landlord with Rental Dates and Amounts Paid
If you happened to rent before deciding to buy a mobile home, the finance company will want a letter from the landlord stating residency dates and the cost of rent. They do not necessarily want to know if the payments were on time or if the home was left in acceptable condition.
Letter of Explanation if You Filed Bankruptcy
If you filed bankruptcy and it is still on your credit report, they will want a letter of explanation. Bankruptcy is not the end of the world. You can still obtain financing for your mobile home, but they will want to know the reason. In the letter, be sure to express your genuine desire to continue paying your bills on time, and convey how much home ownership means to you. They want to be confident that it will not happen again – at least not while you are paying off your mobile home loan.
Source: Recent Requirements by Oxford Bank and Trust
*Requirements May Vary