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Frequently asked questions. This page may answer some of the questions you may have regarding the purchase of a mobile home.
What are the interest rates on a mobile home?
If you do not own the land that the home is sitting on and are "renting" the space then it is considered "personal property". Interest rates therefore, vary from 10%-14% which is determined by several factors: the credit history of the buyer, the age of the home, and the lender.
What is the down payment requirement?
Older homes (usually 1976 or older), generally require a minimum of 20% down. Again depending on the lender they may require more which is determined by the comp's in the area and the buyers credit history. Do not be fooled by the 5% down. Once you get the process started they may ask for more money down. The 5% down is on the newer homes (1980-2000) models.
What would my payment be and why a mobile home?
Again this is determined by what interest rate on the loan amount that you would be borrowing. Of course the more money down the lower your payment. Also take into account the space rent. Sometimes purchasing a newer home with less down will cost you more in the monthly payment.
If this is what you want and can afford it then that's great. But an older home with more down will give you the affordability of living in an area that you like and can afford. The older homes have been here for approximately 30 years. If maintained properly, like anything, then it will stay in shape and keep its value with proper care. Many buyers have purchased an older home. With paint, carpeting and new landscape, they have been amazed how these homes can look. Their friends and family are also surprised how a "Mobile Home" can really be transformed into a very comfortable, attractive, affordable life style with money left over to enjoy their lives.
Will my bank loan on a Mobile Home?
Generally Not. Credit Unions and banks will say they loan on a mobile home, but only if it is on land that you own and not rent. Be sure and clarify this when asking the lender. We deal with several lenders that know the process on these homes. We will gladly give you a credit app to be pre approved prior to your search if you'd like.
Are there any other requirements?
Yes. The park management will require an application for approval at the park that you will be purchasing the home in. This application is to see if you qualify according to their guidelines to see that you can make the monthly space rent. Also be sure to advise your agent if you have any pets. Most parks have a pet requirement as to size and how many. Don't wait to the last minute to tell them. Many have been declined because of a dog that was too large or too many pets.
Can I rent out my home?
Again this is per park requirements. You need to ask this question if this is your intent. Most parks do not allow it. They want to keep "Pride of Ownership" in the park by not allowing rentals. Having an investment in a home is something you should want to be sure that keeps its value. Renters do not always take care of the property that someone else owns.
Do I need a Realtor to purchase a mobile home?
Not necessarily, but it would be wise. I'm not just saying that because I am a Realtor but you want to be sure that title is transferred properly to insure ownership of the home. Mobile Homes purchased that are not on "real property" are titled through the Department of Housing. An Escrow is opened and is handled quite the same as purchasing "Real Property".
Are there Property Taxes on Mobile Homes? (Click for more info)
The county tax assessors office will assess the home according to the age of the home. An Example: a 1973 home would be assessed for approximately $7,000. You pay a tax based on the value not the purchase price of the home.
Please let me know if you have any other questions that are not answered here. I will gladly email you back or call you which ever you prefer to help you in making a decision on the purchase of a mobile home. It can be confusing if this is your first time in the Mobile Home industry. Let me set your mind at ease and help you make the right decision.
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