Home Equity Loan for Mobile Homes

If you are the owner of a mobile home and need funds for a large expense such as college education or even home renovations, you may want to consider a home equity loan. You can bet a home equity loan for mobile homes just as you can get one for traditional homes. A mobile home is a home that can be moved from place to place using a tractor trailer. The word trailer may also be used to refer to a mobile home. These should not be confused with prefabricated or modular homes which are constructed on a solid foundation.

When you buy a mobile home it may already be located in a residential area known as a mobile home park, and you will either buy or rent the land on which your home is located. If you already own land, you can have your home transported there. Mobile homes originated from the small camper, also known as a travel trailer. These units are attached to the back of a vehicle and commonly used for camping trips. As these homes became more popular through the years because of their portability and affordability, many manufacturers began offering larger, more luxurious homes.

Unlike the mobile homes of the past, today’s homes are built with many of the same materials as traditional foundation homes. Many of them are made with vinyl siding. If you chose to make your home a permanent fixture on your land you could have it placed on a concrete foundation. Mobile homes are owned by people from all walks of life. They are ideal for low income families who want a nice home but cannot afford a traditional residence. And, they are great for senior citizens as there are parks made especially for residents over a certain age.

When shopping for a home equity loan for mobile homes, the process is no different than if you owned a traditional style home. A home equity loan lets you use the equity in your home as a way to get cash. You may hear this type of loan referred to as a second mortgage, or a third mortgage depending on how many times you’ve acquired an equity loan. Equity is basically the payments you have made on your mortgage. To figure your equity in basic terms, you would subtract the current price of your mortgage from the original cost. The equity can rise even further over the years if the home appreciates in value.

Home equity loans are looked upon by lending institutions as fairly low risk as the collateral would be your real estate. So, you can often get good interest rates on home equity loans. You will find that the interest on the equity loan is higher than the interest on your original mortgage. You can refinance an equity loan to switch it to a mortgage. Your credit rating will factor in when it comes to the rates you’ll be offered on a home equity loan, as well as whether or not you will be approved. In most cases approval is not difficult to obtain because you are using the value in your home.

An alternative to a home equity loan for mobile homes would be either a home equity line of credit, similar to a credit line from a bank or a credit card, or a reverse mortgage. A reverse mortgage gives you access to your equity, but rather than receiving one large sum of money this type of financing gives you payments that may be monthly or quarterly, almost like a type of income that comes in regularly.