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3 Options For Financing A Mobile Home That Isn't On A Permanent Foundation

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If you are the owner of a mobile home that is not on a permanent foundation and isn't located in a mobile home park, then you will soon discover that it is not going to be an easy sale if you want to move. When you sell a traditional home, your buyer can simply go to a bank and obtain a mortgage. However, today most banks will not lend on a mobile home that is not on a permanent foundation and has been placed on private land, so obtaining a mortgage can be nearly impossible. The good news is that your buyer does have some options, including each of the following:

Option #1: Carry Back a Mortgage for Your Buyer

While it is not without risk and you will not get all of your money right away, you can always agree to carry back a mortgage loan for your mobile home's buyer. With this option, your buyer pays you a large down payment and then you have a mortgage note drawn up and recorded. Each month, instead of making mortgage payments to a bank, instead, your buyer makes them to you. This allows you to earn some extra income from charging interest on the loan, and ultimately, if your buyer fails to make their payments, then you can foreclose on them and get your property back to sell again.

Option #2: Suggest Your Buyer Contact a Local Credit Union

Since credit unions are owned by their members and not large, impersonal corporations, they set their own rules about what types of loans that they offer to their customers. This means that some credit unions will issue a mortgage loan for a mobile home that is set on a piece of private land while others will not. Your buyer can contact any credit union in their area where they can become a member and ask about mobile home financing.  

Option #3: Suggest Your Buyer Contact a Hard Money Lender

Finally, you can always suggest that your buyer contacts a hard money lender to obtain financing to purchase your mobile home. While hard money lenders are not banks and they will charge a much higher interest rate than traditional lenders, they do often extend mortgage loans for mobile homes that are not on permanent foundations or located within a mobile home park. Once the buyer has been in the home for a while and has built up some equity, then they can try to get an equity loan on the value of the land and pay off the hard money lender's loan.

For more options and help with selling your mobile home, talk with a real estate professional.