Bad Credit Mobile Home Refinance Loans

July 7, 2010

Author: William M. Davis

Mobile homes are first built in factories and then taken to the site where they can be given a permanent foundation. If you are in the market for a home but looking for non-traditional housing options, a mobile home may be the next best thing.

About Bad Credit Mobile Home

Bad Credit Mobile home loans are sub-prime loans offered to those having a less than perfect credit due to late payments, bankruptcy, loan defaults or foreclosure in the past. Bad credit mobile home loans can be FRMs as well as ARMs but the interest rates and other costs associated with such loans are usually high.

What do I Need to Qualify

Even with poor credit, you may still be able to obtain a bad credit mobile home refinance loan. You will first need to qualify as a borrower and your mobile home should also qualify for the refinance. I would advice that you consult a suitable lender to see if and what you can qualify for with bad credit. Some of the following criteria need to be fulfilled first: Keep in mind that apart from these criteria, there can be some others which vary from one lender to another.

• A minimum of 620 on your credit score.
• An impressive credit history as well as employment history.
• Have a bankruptcy in the past 5 years.
• 3 months payments on the existing loan should have been made.

Your mobile home also needs to meet some basic requirements for the mobile home refinance loan.

• The mobile home cannot be older than 1977.
• If you want a cash-out refinance loan, your mobile home should have been built after 1990.
• Your mobile home should be built in accordance to HUD standards.
• The loan amount should not be less than $20,000.
• The home can be located in a park on a leased land.
• The size of the mobile home should be about 768 square feet.

If you cannot afford higher payments now, just wait until you rebuild your credit. Alternatively, you can request a no-obligation free bad credit mobile home refinance loan quotes with a few lenders who will first work with you in improving your credit and then provide you with loans. Lenders sometimes offer free services that help borrowers with bad credit repair. Talk to your lender about available options for your unique situation.