How to Qualify for a Mobile Home Loan
Qualifying for a mobile home loan is not all together different than qualifying for any other type of large loan. You will need to have a loan application that shows you are an attractive borrower based on your performance on past loans, your income and your debt to asset ratio. When you are seeking a mobile home loan, your strategy will be different if it will be your primary residence than if you are using the home as a second residence.
If You Have a Mortgage
Some people use a mobile home as a second residence. If you already own property, you likely have another mortgage. This is significant for a variety of factors.
- You have an asset for collateral - Once you have equity in a home, you can use that equity for collateral on additional loans. Using collateral will always make your loan application more appealing because it makes the loan less risky for the lender. You will save money on a secured loan using your home as collateral because you will get lower interest rates.
Your performance on that mortgage, more than any other loan, will affect your ability to get a new home loan.
If You Do Not Have a Mortgage
When you are using a mobile home as your primary residence, you will have to take a different approach to appear attractive to borrowers. Maximizing your application means taking into account the following factors:
- Your credit score - Your credit score is the first criterion any lender evaluates. If you have a score above 700 or 750, you will be starting off on the right foot. You should also assure you have no late payments for at least 2 years.
Improve Your Credit Score - Free ConsultationSource: loan.com