Once I qualify for a mobile home mortgage, is that the only payment I’ll have? Other factors include, the amount of the down payment (most people put 20 percent down on a mobile home), the applicant’s credit score (there are discounts for high credit scores) and the applicant’s debt ratio (which looks at mortgage payment, insurance, student loans, car payments, etc.). Interest rates also depend on the type of loan and loan term. The interest rate gets higher as the age of the unit increases, and banks rarely, if ever, lend on a unit built before 1970. Mobile homes built from 1990 to present will have the best rate. One big factor is the age of the mobile home. While interest rates are fairly straight forward with single family homes, mobile home interest rates are incredibly variable. This is one of the best questions to ask, but it is extremely complicated to answer. Banks don’t usually like to loan mortgages on mobile homes because there is no title on land with a mobile home, only title on the mobile home. In addition, before finally approving mobile home mortgages, the bank requires a home inspection report to decide what repairs need to be made to the mobile home before we will grant the mortgage. This adds another entity into the process, which can complicate the process. For one, the applicant must get financial approval from the bank for the loan to buy the mobile home and from the park to become a tenant. However, some aspects of the application process are more complicated. Like traditional mortgages, mobile home mortgages look at income, credit score, etc. Mobile home mortgages follow the same parameters as Fannie May and Freddie Mac lending to traditional single-family homes. Is applying and qualifying for a mobile home mortgage loan different than applying for a home mortgage? Families usually choose to move in the spring once school is out for the summer, so now is my busiest time. There are also several family park options. There are parks specifically for seniors 55 and older. Most frequently, I work with young families, who are just getting started, or seniors, who want less property to care for and more flexibility so they can travel more. They are most useful for breaking into the Santa Barbara housing market, maintaining lower monthly mortgage payments, downsizing houses or reducing maintenance costs and energy. Many people use mobile homes as a way to break into the market, build equity and transition into traditional housing.Įveryone can benefit from purchasing a mobile home. It is difficult for young families or people working in the service industry, for example, to afford a $700,000 track home, but they can afford a $200,000 mobile home. This problem is exasperated by the city and county limiting the amount of affordable housing required in developments, particularly the amount of income-restricted condos. Why do you call mobile homes “the last bastion of affordable living on the Central Coast”?Īs housing prices have increased and homes in Santa Barbara and Goleta, in particular, have become more and more expensive, it becomes harder and harder for people-especially first-time buyers-to break into the market.
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