What Are the Best Tips for Refinancing a Manufactured Home?

D. Nelson

A manufactured home is a mobile home or Recreational Vehicle (RV). Many individuals who own manufactured homes use them as primary or secondary residences. This means that they may occupy these homes as a person would in a permanent home, allowing them to take out mortgages on their homes. When an individual decides that he or she is not happy with aspects of a loan, such as interest rates and repayment schedules, that homeowner may decide to refinance a loan. Some of the best tips for refinancing a manufactured home are for an individual to determine which kind of mortgage is most realistic and easiest to pay and to find a lender from whom he or she is qualified to borrow.

Woman posing
Woman posing

One of the best things a homeowner can do if he or she is thinking about refinancing a manufactured home is improve his or her credit score. Factors such as late payments and incomplete payments can cause a credit score to remain stagnant or to decrease. Before thinking about refinancing a loan, it can be a good idea to spend several years making timely payments. Once an individual's credit score has improved, he or she can find it much easier to get a new lender and refinance a mortgage.

Another good tip for refinancing a manufactured home is to determine how mortgage payments can be improved. This should be performed prior to seeking a new lender. If a homeowner finds that an interest rate is too high, a smart refinancing decision may be to increase monthly payments, thereby shortening the term of a mortgage. This often reduces interest rates. Likewise, homeowners who have adjustable interest rates, which change depending on the market, may choose to find a fixed interest rate, which can provide a greater degree of stability.

Many lenders provide lists of requirements for individuals who are thinking about refinancing a manufactured home. While these requirements may vary by location and lender, some common requirements are that a mobile home must rest on a permanent chassis and that a home must only be one unit. A home normally must meet conditions set by a government agency, such as the Department of Housing and Urban Development (HUD) in the United States.

In general, there are two different kinds of RV mortgages: those for individuals who own land on which a home sits and mortgages for those who do not own land, but only own a manufactured home. Many lenders choose to deal with one kind of homeowner or the other. Factors such as age and value of a home can also come into play when choosing the best lender for refinancing a manufactured home.

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