Sometimes it seems like a bad credit mobile home loan is next to impossible to come by. Yet, with a little persistent research, even the most credit challenged individuals can find a mobile home loan. Taking advantage of these loans, however, often leads to a financial nightmare!
Mobile home loans for people who have bad credit often require very little money down, while fixed interest rates are common. In many cases, the mobile home loan lender will require the consumer to agree with automatic mortgage payments from a savings or checking account. Likewise, this type of financing rarely comes with balloon payment options or low rates for people with bad credit.
On the other hand, a bad credit mobile home loan allows borrowers to pay their loan off early, in most cases, without any prepayment penalties. In fact, the lender would prefer to have the loan paid off as soon as possible, since mobile homes quickly lose value in comparison to traditional brick and mortar dwellings. Mobile home loan providers are fully aware that bad credit customers are strapped for cash, and therefore try to make the application and approval process as easy as possible.
Traditional mobile home loans for bad credit include high interest rates, since rates are determined based on the consumer’s credit score. Mobile home financing is often denied for those who have a credit score of 549 or less. The score is higher for anyone who wants to get a regular home mortgage. In the case of mobile homes, mortgages cover the price of the home itself, excluding any real land value. Should the mobile home be placed upon a permanent foundation, some lenders will reconsider these specifications, allowing for real property mortgage options.
If you are considering a mobile home loan for bad credit customers, it is imperative that you get everything in writing before closing the deal. Make sure that all lending promises, interest rates, terms and conditions are signed, dated, fully understood, and in your possession.
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