Home Buying in Shreveport>Question Details

Pamela, Home Buyer in Shreveport, LA

What type of mortgage loan is available for mobile homes. I am interested in an FHA loan but I read there is a low lending cap.

Asked by Pamela, Shreveport, LA Mon Jun 17, 2013

I am interested in purchasing a new mobile home in a year. I am a recent college graduate and I plan to spend the next year paying off credit cards and saving for my down payment. Right now my credit score is in the lower 600's - hoping to boost that as well.

I want to spend about 160K on land, the home, and improvements. I can put about $13K down for down payment and closing costs. I want to purchase 5 - 10 acres with my home.

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Congratulations on your recent graduation and your working on your personal financial plan.

When it comes time to buy that first home you will be ready. $160,000 is a respectable sum, and 5-10 acres sounds great. A new mobile home is nice. It is like a new car. You know what happens when you drive it off the lot? When I graduated we looked at trailer houses. The salesman quickly corrected me, mobile homes. We did not buy a mobile home, but I did end up buying 3 houses in 2 years as we moved around the country.

The renowned financial advisor Dave Ramsey has some great thoughts on the subject of mobile homes. Here is a link to his thoughts. I suggest you consider the wisdom of his perspective, he calls it double dumb.

http://www.daveramsey.com/index.cfm?event=askdave/&intCo…

I am a real estate professional, not a financial professional. So my perspective is from the receiving end of financial advice, not the giving end. However I help clients every day with a wide range of different financial situations and I see the practical implications of what families deal with in making a decision about buying or selling a home. I always recommend financial experts, face to face when borrowing money.

If you would like specifics, go to http://www.Zip711.com and click the Trulia menu tab.

I interview prospective buyers and sellers on a regular basis. I would be glad to speak with you once you have spoken with a lender and have a letter of prequalification. If you would like a list of local lenders to consider, please contact me at Zip711.com.

Carolyn Grimsley, CRS, ABR
Certified Residential Specialist, Accredited Buyer’s Representative
Licensed by Louisiana Real Estate Commission

Realty Executives SB
In Bossier, 4012 Benton Rd suite 110
In Shreveport, 8575 Fern Avenue Suite 105
Each company independently owned and operated
http://www.Zip711.com
Web Reference: http://www.zip711.com
0 votes Thank Flag Link Sat Jul 20, 2013
You should contact a company called MHLOANS. 888-809-1145. No affiliation with me or my company but they will do a good job. Thanks,
0 votes Thank Flag Link Mon Jul 1, 2013
Hi Pamela there are so many lenders out there that have different lending programs for all types of properties. And you are making the right steps towards securing a loan with a lender by getting your credit score up. I would love to email you some of my featured properties. Even though your not quite ready yet doesn't mean you cant start looking. Goodluck if you any questions feel free to contact me.
0 votes Thank Flag Link Mon Jun 17, 2013
Mobile homes are hard to finance by their very nature. They are treated more like a vehicle which depreciates, rather than a dwelling that appreciates. The risk of the collateral being destroyed by weather events is also a reason many lenders shy away from the mobile home market.

The good news is that, contrary to what you hear, you don't HAVE to have a 20% downpayment these days. FHA requires as little as 3.5% down which you seem to have already. Another option is a USDA Rural Development loan which is ideal for those with borderline credit. Contact a local lender who is well versed in this type of loan.
For both of these loans, the property itself must qualify. Mobile homes must be "demobilized" - at a minumum they require skirting, tie downs, and other specific items which remove the "mobility" aspect.

Your best bet is to talk to a local realtor who has experience with mobile homes IN YOUR MARKET. If you need a recommendation, I'll be glad to help you find a great buyer's agent, which costs you nothing!
0 votes Thank Flag Link Mon Jun 17, 2013
Manufactured homes (double wide) are usually available for finance with FHA, VA (if buyer is a veteran), and conventional mortgages. If buying an existing home, it will have to be evaluated if it has an FHA anchoring system. Many times the offer can be made subject to the owner getting the property FHA approvable at their expense.

As far as credit score, I often see approvals around the 640 range and up. It sounds like you don't have far to go! The FHA limit in NW Louisiana is 271k. When you get ready to do a little research on properties available, call me at 318-219-5229, or visit my website at http://www.RollinsHomeTeam.com. Thanks for the great question!
0 votes Thank Flag Link Mon Jun 17, 2013
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