Saturday, November 2, 2013
Bad Credit Mobile Home Financing Sources - 5 FAQs
For many people across the country, owning a mobile home represents a lot of important things. Among these are: the financial benefits of building up home equity, pride of home ownership, and flexibility in choosing where to live.One of the most common ways to acquire a mobile home is through financing. For, even though these types of homes are generally less expensive to purchase than are traditional houses, most people cannot afford the full purchase price and therefore must take out a loan.If you are looking for bad credit mobile home financing sources, here are 5 FAQs that can help get you into your mobile home faster:1. How much of a down payment will I need?A: While traditional home loans usually require a down payment of 10% to 20%, some bad credit mobile home financing lenders offer loans for a down payment as low as 5%.2. Will a shorter loan term allow me to get a lower interest rate?A: Just like traditional loans, loans for these homes require that you pay interest against the money you borrow. The shorter the loan term, the less you will pay in total interest payments over the course of the loan. However, many people are also surprised to learn that applying for a shorter loan term will often afford you a lower interest rate.3. How can I qualify for a loan if I have a bad credit score?A: It is true that your credit score is one of the factors that lenders consider when determining whether to qualify you for a new loan. However, there exist lenders who specialize in bad credit home financing. These lenders consider other factors as well, such as proof of identity, desired loan term, down payment, and other factors. Do not give up on your dream of a home just because you have a bad credit score.4. Can I refinance even if I don't own the land?A: Let's say you currently have a mortgage for a mobile home but you don't own the land - and yet you are interested in refinancing that loan. The good news is that you can refinance the loan even if you do not own the land.5. Can I even buy repossessed mobile homes?A: If you would like to reduce the total investment required for a new mobile home, another desirable option is to buy a repossessed home. You can get financing on these homes, and your monthly payments will be lower given the lower price of the unit.Bad credit home financing is a very real option for you to consider. If you are interested, your next step is to find a list of lenders who will work with you despite your bad credit score.