Mobile Home Loan: With or Without Land?

By: Lara Sawyer

Mobile home loans are becoming increasingly popular as the mobile homes technology advances thus increasing the comfort of these homes on wheels. The mobile homes need to be sitting in land that can be provided by the different governments or can be purchased by the mobile home owner. However, it is not the same to get a mobile home loan covering only the vehicle than to obtain a mobile home loan to finance the purchase of the vehicle plus the land where it will be placed.

These two different loan types have particularities that define very different loan terms. It is therefore important to outline in advance what kind of loan product you are looking for. The main topics that you have to address are: the differences between mobile home loans that exclude or include the land where the mobile home sits in, the different regulations of mobile home loans depending on this fact and the ways of obtaining better terms on mobile home loans.

Differences Between Mobile Home Loans With or Without The Land

As explained above, there are two kinds of mobile home loans: Those that include the land where the mobile home will be deposited and those that do not. The first type can sometimes be considered home mortgage loans and other times they are simply mobile home loans. Those loans that do not include the money needed to purchase the property where the mobile home sits in are called chattel loans.

Since mobile homes can be stationed on parks or communities, the land is not a necessary factor and thus, when the applicant can not afford to purchase the land too, simple mobile home loans or chattel loans can provide you with all the finance needed to purchase your mobile home and have your own place to live. Eventually, when your mobile home is paid off, you can try and get approved for a mortgage home loan in order to obtain the land too.

Different Regulations May Alter Your Decision

In some states, just like with manufactured homes, when the loan amount is used not only to purchase the mobile home or manufactured home but also the land where it will stand, these loans can be considered mortgages and thus, you can seize all the benefits in terms of taxes and subsidizes that such category implies. Therefore, you need to check local regulations in order to see whether you can benefit more of a particular loan type or the other.

That is the reason why we say that the different regulations may alter your decision. Because you may have thought that you would rather avoid purchasing land and that you would stick to a regular mobile home loan instead but it is possible that if you chose to get the land too, in some states it may end up being cheaper.

How To Get a Good Deal?

If you want to get a good deal on your mobile home loan whether it includes the land or not, my suggestion is that you search online for mobile home loan lenders and request loan quotes from them to see what they are offering. Try to contact them informally to know their requirements for approval and once you are confident with a particular offer and lender apply for your mobile home loan. That way you will make sure to get if not the best offer, at least a great one.

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