Bad Credit Manufactured Home Loans: Will Lenders Still Trust You with a Loan

Most people with bad credit always think that they will never be able to qualify for mobile home loans. On the contrary, this is just a myth and there are now lenders out there that have special mortgage or mobile home loan programs that are specially designed for people with bad credit ratings.

If you have a credit score lower than 600, you will still be able to obtain a mortgage loan to finance your purchase of the mobile home of your choice. However, it will be difficult for you to find one. Besides, you have to consider that with a bad credit score, you tend to be riskier to be trusted on a loan. You have been delinquent with the payments before, and there is a big chance that you will be delinquent with your payments again. As you can see, you are the ones who are solely responsible for your credit score or rating.

By any chance you find a mobile home loan or mortgage program that is specially designed for people with bad credit rating, you should expect the interest rate to be higher than normal. If you are really determined to own that mobile home you have always been dreaming about, then this is the best chance that you can have to get the financial help you need.

If you pay on time, you will not only decrease the risk of your mobile home getting repossessed by the creditor, but you will also be able to improve your credit score. This means that after a few years of paying off the loan in time, you will see that your credit score will improve which will enable you to refinance your mortgage at a lower interest rate.

Mobile home mortgage lenders will basically take a look at three main areas before they process the loan and get it approved. The first is that they will look at your capacity to repay the loan. This means that they will take a look at your income and determine if you will be able to keep up with the monthly payments. Secondly, they will look at your credit rating as mentioned before. Lastly, the lender will look at the collateral, which is the property in question, which should be equal or more than the value of the loan.

The lender will have the right to hold the deeds up until you pay off the loan in full. This will reduce the risk to the lender.

These are the things you have to remember when you are going to apply for a mobile home mortgage loan program. By remembering these tips, you can be sure that you will be able to pay off your loan in time, and also improve your credit score.

With this, you will be able to qualify for refinancing your loan which can have lower interest rates.

As you can see, it is possible that you will still be able to get qualified for a mobile home mortgage loan program even if you have bad credit rating. All it takes is that you should be patient when shopping around for the loan, and never rush things in order to get the right lender that you are comfortable dealing and also the right type of mortgage for your mobile home that you will be able to afford. Take your time in understanding the mortgage you plan on taking out.

Entry Filed under: mortgage programs