For those people put there with bad credit standing who wish to purchase or refinance a mobile home (assuming it’s to be installed permanently and at the owner’s lot), there is available financing. This type of financing is unique so look for a lender that has experience with bad credit loans so that you get good advice and an idea of what to look for.
These type of bad credit loans are commonly referred to as subprime mortgages and this is one reason why the housing market is in the mess it is. While many lenders will only work with individuals with a good credit rating, there are some institutions that will lend to people who are not as fortunate or have made bad financial decisions in the past.
What is considered a poor credit rating?
As far as the mortgage market goes an individual with a credit rating less than 620 will be considered having poor credit, and this will make securing financing for a mobile home much more difficult. However, the lenders that do lend to borrowers with less than perfect credit will make sure they limit their risks by charging a very high interest rate.
As with all bad credit loans, you will have to expect that the interest rates will be much higher than that of a traditional mortgage and will be offered with either fixed rate mortgages or adjustable rate mortgages (ARM). Many professionals advise to first pull a copy of your credit report from one of the three main credit bureaus before applying for a loan. You are acquired to one free credit check a year.
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