Innovative Finance

The process of getting FHA (Federal Housing administration) or financing for mobile home loans is not an impossible task. However, the amount of money that can be borrowed is less than the traditional loans. Unfortunately, if you had a foreclosure or using some other type of bankruptcy services FHA loans can only be given out 2 years after filing for bankruptcy and 3 years after a foreclosure.  If neither foreclosure nor bankruptcies are concerns you can use the following steps to secure financing.

Steps:

• Contact an FHA-approved lender: At first, the borrower should contact an FHA approved lender. He can get the information from the yellow pages under the category of real states, mortgages, lenders; from different websites. The borrower will also get the application form from the lender.
• Interest rate: Usually, the interest rates for FHA loans vary as they are set by the individual lenders. The borrower should know the various interest rates offered by the various lenders so that he can take the loan with lowest interest rate.
• Eligibility: Next, the borrower has to know about the income and credit qualifications in his locality. He should have enough income to make the down payment as well as can cover his living expenses.
• Loan amount: The borrower should know the maximum loan amount in his locality. Normally, the maximum loan amount is $151,725.
• Application: If the borrower is eligible for the mobile home loans, then he has to fill up the loan application form. He also has to provide the necessary documents that are required by the lender.
• Down payment: The borrower has to make a down payment of about 3% to 5%. However, this varies from place to place.
• Pay mortgage insurance: Since the borrower is making the down payment as little as 3 to 5 percent, therefore he needs to pay mortgage insurance so as to cover the risk incurred by the lender. The borrower needs to pay an up-front mortgage insurance premium. He also needs to make the monthly mortgage insurance payments on time.
• House: The house that the borrower wants to buy must be used as his primary residence.  The house must be constructed according to the National Manufactured Home Construction and Safety standards.

FHA mobile home loans help the low-income families to buy homes of their own. If any borrower follows these steps then he can get FHA mobile home loans easily.