Can I refinance a mobile home?

Posted by  on May 15, 2012

Millions of Americans live in mobile homes, also called manufactured homes. Mobile homes come in a variety of models and may cost anywhere from $15,000 to more than $100,000 without land according to the Federal Trade Commission. While mobile homes can be financed, you may have bought yours with a personal property loan rather than a mortgage. Still, even if you don't have a mortgage on your trailer, you may be able to get refinancing.

Why refinance now?

If you don't own the land under your trailer, you likely financed with a personal property loan. So you may be paying a higher interest rate than if you had secured financing with a mortgage. Refinancing could lower the interest and give you lower monthly payments. Refinancing also may make sense if you didn't have great credit at the time the trailer was purchased. Check your credit score to see if it has shown any improvement since purchasing your home.

Refinance mortgage

If you already have a mortgage, you may be able to refinance into another with better interest. Shop around to compare mortgage quotes to get an idea of what types of fees and closing costs you would pay. Some mortgage lenders may not want to approve a home refinance if your mobile home is too old or has lost a lot of value.

FHA refinance

The Federal Housing Administration (FHA) insures mobile home loans from approved lenders. The loans can be used to purchase or refinance a trailer, a developed lot on which to place a mobile home, or a mobile home and lot in combination. The refinance is only available if the mobile home is your primary residence. Under the FHA program the maximum loan limits are $69,678 for a manufactured home, $23,226 for a mobile home lot and $92,904 for a home and lot. Refinance deals are for a maximum term of 20 years for a mobile home, 15 years for a mobile home lot and 25 years for a home and lot.

If you are unable to find a better interest rate than you currently have on a mobile home loan, refinancing may be out of the question. But since current mortgage rates are so low, think about whether or not it makes sense to sell and get a mortgage for another type of home, such as a single-family house or condo.


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