When you file for bankruptcy, you may find it difficult to secure housing in the immediate future. Because of this, many people who have filed for bankruptcy in the past turn to mobile homes as a living arrangement. Buying a double-wide is less expensive than purchasing a home, but it can still be difficult to finance after going through bankruptcy.
Getting a loan for a double-wide is not exactly like getting a traditional mortgage. When you finance this type of purchase, you will typically have to pay a higher interest rate than what you could get with a mortgage for a traditional home. In most cases, you also have to make a larger down payment than regular mortgage lenders require. Lenders treat these loans differently than traditional mortgages and see them as higher risk loans.
The Department of Housing and Urban Development runs a program through the Federal Housing Administration known as Title I. With this program, you can borrow money to purchase a lot and a manufactured home. With this program, you can typically get qualified for a loan easier than if you used a traditional loan program. Since the loans are backed up by the FHA, the lending criteria are a little easier to qualify for. This can be helpful when you have a bankruptcy on your record.
In many cases, you can obtain financing directly from a mobile home dealer. These loans are provided in-house or through a network that is available to the dealer. With this type of financing, you can often qualify even if you have bad credit or a bankruptcy on your record. Some of these lenders are willing to finance you if you have a piece of land to put the mobile home on and a regular income.
When you have a bankruptcy on your record, you may have to be willing to agree to unattractive terms for a mobile home loan. Although interest rates for mobile home loans are already high, the rate when you have a bankruptcy on your record could be even higher. Lenders might even ask you to make a bigger down payment than you normally would for a mobile home. For example, your lender might want you to put 20 percent down instead of only 10 percent.