Whether you call them mobile homes or manufactured homes, financing one is different than financing a regular home. Yet, it is still possible to finance your mobile home with a mortgage from a traditional bank lender. Here's how you can find a bank to loan you money for your mobile home.
Determine your financial needs. If you need money to finance the purchase of a mobile home, do you need a bank to lend you money? If so, you'll need to find a lender to give you a mortgage. The loan works the same as if you were purchasing a brick and mortar home where it is backed by your assets, which in this case is the mobile home.
Review your credit score to determine if it is good enough for a reasonable mortgage loan. You can get a free credit report online. Your credit is one way a bank will gauge whether or not to lend you money, and several factors weigh into this decision including whether you make payments on time and what your debt-to-income ratio is.
Start researching banks. Don't just contact one bank, but speak with many and let each know you are examining your financing options. Banks do give mortgages for mobile or manufactured homes, although it is less common than for brick and mortar properties. Record the different proposals you get from the banks. Since mobile homes tend to depreciate in value more quickly than a property and home, you will have a harder time finding offers.
Figure out how much you can afford to pay each month as a mortgage payment. This will help you determine how much you can spend. Also consider other factors of the various mortgage proposals available to you, such as how much extra you can pay per month if you decide to and if there is a pre-payment penalty attached to the loan you select.
Once you've decided on a bank's proposal you like, do not simply accept it. Talk to the bank again and try to negotiate a better offer using the other banks' proposals as leverage. Your credit score may be a factor in this conversation, but trying to negotiate a better rate can't hurt.
Finally, sign the loan papers for the mortgage that is best for you. Make sure to review all documents, as they represent a binding contract in which you are liable.
It is important to discuss the mortgage with a neutral professional, such as an attorney, before signing to make sure you are well represented in the contract.