Bad Credit Mobile Home Refinance - In today's stricter lending practices, mobile home loans are generally far more difficult to obtain than traditional mortgages.
With these loans, the lender is taking a risk not only on the reliability of the consumer, but also on a depreciating product. For mobile home owners with blemished credit who are looking to refinance, a mobile home refinance may be the only viable option.
Bad credit home refinance loans fall under a broad category of loans classified as sub prime. Because of their extended risk, sub prime loans carry significantly higher interest rates than prime loans. As with any loan, the interest rate you receive will depend on your credit score; the lower your FICO score, the higher your rate will be, and if your score is less than 540, it's not likely that you'll qualify for any type of loan program.
There are strict standards associated with a bad credit home refinance, including:
Mobile home must be over 8 feet wide and at least 700 square feet
All wheels and hitches must be removed
Home must be secured to a permanent foundation
The mobile home must be in a good condition, without immediate need for major repair work
In addition, all bad credit home refinance loans require an independent appraisal and inspection. Generally, loans will carry terms from 7-25 years and will come with a stipulation that mandates payment by automatic withdrawal from a checking or savings account.
There are many factors to consider when choosing whether or not to refinance. When you research all options and choose wisely, you'll gain peace of mind as well as fresh start.