Mobile Home equity loans allow people to borrow money against the equity in their mobile or manufactured house. With a mobile home equity loan, the funds are secured by offering the house as collateral. Ideally, it would lower the consumers interest rates, which can be most beneficial for paying off existing high interest rate debts, paying for renovations, or getting cash out for other bills and expenses.
There are some significant differences between these types of financial assistance as compared to a regular home equity loan. Mobile home equity loans are not as popular as their counterparts. Many banks will not finance this funding because the current default or foreclosure rate for mobile homes is far in excess of that of regular homes. Granting a mobile home equity loan is often too much of a risk for financial institutions.
Financing a manufactured house for the first time may be a chore, and refinancing or seeking funding against this property is even more difficult. There are many guidelines that consumers must follow in order to meet eligibility requirements. The qualifications or restrictions for a mobile home equity loan include the age of the home. It must have been built after 1977 and must be built to Housing and Urban development standards. It also must meet minimum size and square footage requirements, must be livable and have skirting. Additionally, mobile home equity loans may be dependent on other factors that will be determined according to the individuals particular situation.
There's no need to despair though, as there are lenders who are more than happy to work with people needing financial assistance. Some offering mobile home equity loans offer a 30 day break period from payments and have no prepayment penalties. The consumers credit rating may play a crucial part in obtaining assistance, as will other factors, such as payment history, the value of the house, etc. Before seeking out a mobile home equity loan, the individual may want to do some checking on things like whether or not the property meets foundation requirements, when it was built, and the state of deterioration. While financing for this type of property may not be as readily available as receiving funding for other items, lenders are available. The consumer will just have to work hard to find companies that offer programs and packages that will fit their financial needs. "Commit thy works unto the LORD, and thy thoughts shall be established."
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