Finance 20 Acres With Mobile Home

by Peg from Nebraska

Ask Kate how to finance a mobile home on 20 acres: Kate, I am looking to finance 20 acres with a mobile home on it. No one wants to loan on a mobile home that is not on a mobile home lot. No one wants to loan the money on acreage with 'just' a mobile home on it.


Peg continues... The mobile home has been permanently set down with the wheels taken off, built onto and is a 1997 model. Why is it so difficult? Any suggestions? I live in Nebraska and the land is at a good price.

New! Becky asks how her daughter and son-in-law can refinance a mobile home with a high mortgage rate: Can they get refinancing on it? How would they go about it?

Kate Answers: How to Finance 20 Acres with a Mobile Home

***zz-portrait-left.shtml*** Dear Peg, Here is why financing a mobile home on 20 acres can be so difficult...

Mortgage lenders anticipate mobile homes on acreage becoming difficult to sell. So, financing mobile homes on acreage, even during a hot real estate market, has been a specialty of local banks who understand their particular real estate market or lenders charging higher interest rates.

Keep in mind, in the future as the owner of this real estate, your prospective buyer might run into similar mortgage road blocks you are experiencing today.

Suggestions for Financing a Mobile Home on Acreage

1. Many mortgage companies shy away from financing more than 5 acres. This property with 20 acres could be narrowing your financing choices. Look for lending companies who specialize in excess acreage.

2. You mentioned that the mobile home has been built onto. Does Nebraska require a final permit through a specific government agency for alterations? Alterations can include remodeling, a permanent foundation or a simple attached patio. Have you done your homework?

3. Although customs vary throughout the US, I witnessed many mobile home on excess acreage financed by the sellers.

I hope this food for thought is helpful since you might need to sell the mobile home and acreage one day as the homeowner.

Best wishes,

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Mortgage Refinance of Mobile Home
by: Becky from Delmar, DE

Hello Kate,

My daughter and her husband have a mobile home on a piece of property in Delmar, Delaware with a mortgage at a very high rate of interest.

Can they get refinancing on it? How would they go about it. Becky

Hi Becky, Kate here...

If the mobile home is permanently affixed to an approved foundation on land, the mobile home (or manufactured home) is categorized as real estate. If the mobile home is not on its own land, it is considered personal property and is not eligible for a residential mortgage.

Assuming your daughter's mobile home is real estate, the loan process should be similar to borrowing on a stick-built home, with a few exceptions. So, your daughter's first question to ask while she interviews lenders is if they are experienced at financing mobile homes.

Additionally, here are a few more questions for her to ask:

1. How many loan programs do you have that include mobile homes? Ask if she qualifies for FHA financing or USDA Rural Home Loans: Zero Down Payment. (Note: USDA Streamline Refinancing is for homeowners who financed the purchase of their home with a USDA Rural Home Loan.)

2. Do you have an age cut-off for the mobile home? (Before June 15, 1976, mobile homes were not built to the same specifications that are required today.)

3. Mobile homes are commonly on wells. If this is the case for your daughter, she should inquire into the necessity of a well test.

4. If the mobile home has been remodeled, she should notify the loan originator and ask if the lender will require permits.

When mobile homes are built, the manufacturer attaches Housing and Urban Development (HUD) tags to show it was built according to HUD's Manufactured Home Construction and Safety Standards.

Locate the tags, (usually there are 2 tags on the exterior), and have the numbers available at time of loan application. This will save time later on down the road.

Best wishes, Kate

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