February 25, 2015
A reader asks, “I never tried to get a loan for my mobile home, I’m currently $250 away from owning it. I went into a land contract with the lady who owns it now, well she didn’t tell me that the people who own the land want all 3 trailers moved off their land by summer, no specific date. Now the I moved into this trailer 04/2014, I’ve dealt with nothing but repairs out of my pocket…I’m a low income, unable to work 30 year old mother, I own a vehicle straight out, and my credit score is 580, is there a type of loan to help me pay to move my trailer, and buy land?”
Let’s see what the FHA official site, FHA.gov, has to say about this reader question:
“Under the Title I program, FHA approved lenders make loans from their own funds to eligible borrowers to finance the purchase or refinance of a manufactured home and/or lot. FHA insures the lender against loss if the borrower defaults. Credit is granted based upon the applicant’s credit history and ability to repay the loan in regular monthly installments.”
So the basic answer to part of this reader question is yes–those who qualify financially may be eligible for an FHA home loan to purchase a mobile home, a lot, or both. Here’s more from the same part of the FHA official site, titled HUD Financing Manufactured Homes:
“A Title I loan may be used for the purchase or refinancing of a manufactured home, a developed lot on which to place a manufactured home, or a manufactured home and lot in combination. The home must be used as the principal residence of the borrower.
Maximum Loan Amount
- Manufactured home only – $69,678
- Manufactured home lot – $23,226
- Manufactured home & lot – $92,904
The maximum dollar limits for lot loans and combination loans may be increased up to 85 percent in designated high-cost areas. For further information on high-cost area limits, contact (800) CALL-FHA.”
The site adds some important information on what the borrower must do when approved for these types of loans:
“Eligible Borrowers Must
- Have sufficient funds to make the minimum required downpayment.
- Be able to demonstrate that they have adequate income to make the payments on the loan and meet their other expenses.
- Intend to occupy the manufactured home as their principal residence.
- Have a suitable site on which to place the manufactured home. The home may be placed on a rental site in manufactured home park, provided the park and lease agreement meet FHA guidelines. The home may be situated on an individual homesite owned or leased by the borrower.”
The site says nothing about loan funds for relocating the mobile home, so we can’t comment on that part of the reader question, however it’s important to note that lender standards regarding FICO scores may vary, so the reader will need to check with a specific lender to see if the FICO scores mentioned in the question are sufficient for that lender.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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