mortgage & home loan refinance | vase at home

Mobile Home Refinance Options

Updated: Oct 23, 2014

Highlights

  • Financing a mobile home mortgage is more expensive than a permanent home.
  • Seek an FHA-backed mobile home loan or refinance.
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How to Refinance a Mobile Home.

Generally speaking, traditional mortgage lenders are reluctant to offer mobile home refinance loans because, unlike homes built on permanent foundations, which tend to gain value over time, mobile homes tend to lose value, or depreciate, as time passes. Refinance lenders take a security interest in a home in which they lend money, in case the borrower defaults on the payments, allowing the lender to foreclose on the home. During a foreclosure, a lender will sell the home to recoup as much of their money as possible. Because mobile homes tend to depreciate, it is more difficult for lenders to get their money back in a foreclosure. For example, if a bank lends $50,000 on mobile home based on its current value, and the borrower defaults 10 years later, the lender may only be able to sell the property for $10,000, meaning the lender may lose money in the process.

For an introduction to pre-screened mortgage lenders, the Bills.com Mortgage Refinance Saving Center makes it easy to compare mortgage offers and different loan types.

Specialty Lenders

Specialty lenders allow borrowers to refinance their mobile homes. Keep in mind that loans on mobile homes are not the same as standard mortgage loans. Rather, they are generally referred to as personal property loans, and carry higher interest rates and shorter loan terms than regular mortgages. If you are interested in obtaining a refinance loan for a mobile home, look for a specialty lender who offers mobile home refinancing, and also see the FHA Financing Manufactured (Mobile) Homes page.

Again, you will probably pay a higher interest rate on a mobile home refinance loan than a standard home loan, so refinancing your mobile home may not be a sound financial decision. Make sure the interest rate offered to refinance your home will not cause you financial hardship.

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8 Comments

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  • BA
    Jan, 2010
    Bill
    Lenders want three things in a borrower: 1) Positive credit history, 2) Stable income, 3) Debt-to-income ratio of 35% or less. Get a Uniform Residential Loan Application (Form 1003) and complete it to see where you stand. Complete one copy of the form for yourself alone and complete another copy including information from both you and your partner. Then start shopping at the Bills.com mortgage refinance savings center and get no-cost quotes from pre-screened lenders. Refinancing a mobile home is more difficult than for a stick-built home, but it is possible if you are persistent.
    0 Votes

  • LZ
    Jan, 2010
    Lorraine
    I live in Florida and trying to find some direction for refinancing. We have doublewide mobile home on 25 acres of land. Also have adjacent property with home and 10 acres. Me and my significant other own both properties. He lives in one and I live in the other. I need advice on the direction to go for refinance and debt consolidation. Credit is good.
    0 Votes

  • BA
    Oct, 2009
    Bill
    If you own the land, you can get an FHA loan. If not, your refinancing options are much more limited, but possible.
    0 Votes

  • HS
    Oct, 2009
    Howard
    I have a 24x66 1973 gentry mobile home, all copper wiring set on a permanentfoundation with with a 14x40 addition and a permanent conv pitched roof, and Inspected and accepted by the county Building inspectors. I an eligible for a va loan and am trying to refinance. Any suggestions??
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  • BA
    Feb, 2008
    Bill
    You do not have to wait to apply for a second mortgage, but my concern would be to find the right lender. YOu are inquiring about a second mortgage, which makes me assume that you already have primary mortgage that you pay on. I would contact them to see what your options could be. As far as whether this is a good decision, my answer would be no. You only borrow against your home to make improvements on your home, remember that you are putting your home on the line for the sake of these small bills. I would think twice before I did so.
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