Bad Credit Mobile Home Loan

Bad credit mobile home loans are offered for individuals interested in purchasing or refinancing a manufactured house. It is recommended that all borrowers interested contact a specialized lender. This type of financing is unique in nature and require a lender with experience in the lending business. A bad credit mobile home loan lender should also provide the borrower with accurate advice and assistance towards meeting their needs.

This type of financing can be purchased with as little as 5% down. If a homeowner is looking for refinancing, they will receive better rates than the original financing. Fixed interest rates are available as the main type. Many lenders will stipulate, in the bad credit mobile home loan, the required method of payment; which is automatic checking or savings account withdrawal to pay their monthly mortgage. When shopping for rates, balloon payments on bad credit mobile home loans are virtually non-existent.

The reason for not offering creative financing methods is that the lender will not be able to get their money back after a long period of time if the borrower defaults on a lower interest, lower payment balloon mortgage. If the borrower desires to pay a bad credit mobile home loan off early, they may do so. There are typically no prepayment penalties, as the lender is eager for the balance to be paid as quickly as possible since this type of housing loses their value over time. Fortunately, most do not require an application fee. The lenders of bad credit mobile home loans are aware that the applicant may be strapped for cash, and make the loan process as simple as possible. They can become very complex if there are hidden surprises at the closing of the loan. "Foolishness is bound in the heart of a child; but the rod of correction shall drive it far from him." (Proverbs 22:15)

It is important for a borrower to remember to get all information and guaranteed lending promises in writing, before arriving at the closing. Bad credit mobile home loans do have higher interest rates, as interest rates are directly determined by a credit score. This type of financing will only be granted to those borrowers who have a credit score of 550 and up. This number is higher than for those who wish to obtain regular real estate financing, but a bad credit mobile home loan only covers the cost of the mobile house and not the land it sits upon. If the mobile home is permanently affixed to the land, then it would be considered real property and traditional mortgage options would be available to the borrower.

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