What would be your reason for refinancing your mobile home? Would you want to payoff debt, buy a bit more land, use the money to add one, or do you have another reason? Most reasons are going to be valid and are going to be what you need to refinance. There are some things you need to know about refinancing a mobile home that are going to be different than a typical loan. Here are some mobile home refinance loans tips to help you.
First, if you do not already own your own land, then you need to consider making a plan to purchase some land for your mobile home. This makes getting finances much easier and you will no longer have to pay rent for a spot in a park. Plus if you decide you want pets or children you will have a lot more room for them with your new land. If you want to add on later this is easier to do with the land as well.
Second, make sure your home is fixed to the ground and is not on wheels. Also, get rid of the trailer hitch because it makes your home look like it is easily moved and that is not very secure for a bank. This will help you when appraisal time comes because there will be no pictures with wheels or a hitch to help underwriting tell you no. This is a must and most lenders will not even touch you if you do not get rid of the wheels and hitch.
Last, make sure you do everything you can to help your credit score. Get a free credit report and pay off any small debts you can to help your credit score. This will greatly improve your chances of being approved when it comes time to to get one of many mobile home refinance loans. Plus paying off some debts will help your debt to income ratio which also helps your chances of qualifying.
By: Gressly Stevens
Posts Tagged ‘Payoff Debt’
Mobile Home Refinance Loans With Any Credit
December 24th, 2009Bad Credit Mortgage Refinancing Home Loan
December 24th, 2009
Bad credit mortgage refinancing loans help borrowers with credit problems refinance an existing mortgage to either payoff debt or get cash out. If your credit is poor because of excessive credit card debt then bad credit refinancing is one of the best ways to improve your credit score.
Bad credit refinancing is typically for home owners who have credit scores under 620 and have late mortgage payment’s in the last 12 months. Sub prime lenders are the main source for these types of loans and many will lend to bad credit borrowers with a 30, 60 and even a 90 day late payment on record. Although the amount of equity you can borrow will be greatly reduced with the amount of late payments you have. Qualifying Credit scores for sub prime loans begin at 500 and go all the way up to 700, at a 500 credit score expect to be able to borrow 70-80% of your home appraised value. The higher your credit score the higher the Loan To Value you can borrow.
Many sub prime lenders offer 2 or 3 year Adjustable Rate Mortgages to bad credit borrowers, short term Adjustable mortgages are not a good idea for the bad credit borrower. The biggest drawback to an ARM is that if you should fail to improve you credit score and be unable to refinance, your payments will begin to rise when your adjustment period begins. The rise in payments can often be hundreds of dollars a month making your mortgage difficult to pay. When applying for a bad credit home loan It is best to stick with a fixed rate subprime mortgage, if you need a lower payment ask your mortgage broker about 40 year fixed rate subprime loans.
With the availability of subprime home loans bad credit refinancing can be a great way to improve your credit score, however when the wrong programs are chosen it can do just the opposite. Use a good reputable mortgage broker and always use common sense when shopping for your subprime home loan.
Learn More About Bad Credit Home loans
By: Darin Sewell