How to Get a Mobile Home Equity Loan

The equity of a home is the difference between its market value and the remaining balance on the mortgage. The equity of a mobile home can be used to get a loan, but the funds are generally less readily available than other types of home loans. However, with perseverance, you can find a lending institution willing to help, as long as you and your mobile home meet the minimum requirements. Mobile home equity loans are also known to have higher interest rates, but you'll be able to receive all the money at once and use it however you choose once you're approved.

Determine your eligibility. To qualify for a mobile home equity loan, you must own the mobile home for which you've taken out a mortgage. You must be at least 18 years old, have a good credit rating, have a verifiable source of income and have enough money to make a down payment of at least 5 percent of the loan amount.

Determine if the structure is eligible. Mobile home equity loans are only available if the structure was manufactured after 1977, adheres to U.S. Department of Housing and Urban Development (HUD) codes and has full utilities, including water, sanitation and electricity. The home must be well-maintained, have a permanent foundation, and it should be used as your primary residence.

Get quotes from at least four lenders to determine the best rate. Contact local lenders, but also consider online financial lenders that may offer better rates or a chance for comparison shopping. The more quotes you get, the better chance you'll have of getting a good deal on your mobile home equity loan.

Enlist the help of a broker to help negotiate terms with your chosen lender, if possible. Read the loan agreement carefully and have a lawyer inspect it to make sure it's in your best interest to accept the terms. Once you've agreed to the terms of a mobile home equity loan, you must adhere to them until the agreement has expired.


  • Mobile home equity loans allow you to choose your repayment option, interest rates and time frame. Be sure to take your plans into consideration and choose terms that will work for you over time.


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