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Mobile
Home Loans
(trailer
parks and wolves)
A mobile home is a movable dwelling that is typically situated
in rural areas, either on an owned or rented lot. Similar to a
fixed, built-in house, a mobile home is equipped with all the
amenities; only at a limited space and much lesser acquisition
cost. Some people may not understand the need of having a mobile
home because their lifestyles do not require them to travel from
one place to another. For travelers, acquiring a mobile home is
the best solution for an affordable and comfortable lifestyle
despite the frequent need to travel. Now they need not rent apartments
or houses and instead park on areas designated for mobile homes.
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Like built-in houses, a mobile home owner needs to implement
repairs and improvements over its body and amenities. To obtain
funding, the mobile home itself can be used as collateral for
mobile home loans. This type of loan is extended by credit companies
and lending institutions. Under a mobile home loan application,
credit companies will initially investigate if the mobile home
is in fact the principal residence of the borrower, prior to processing
of the loan application.
There are two categories of mobile home loans. One is limited
only to the mobile home as a form of security and the other category
utilizes both the lot and mobile home as collateral in the agreement.
A mobile home loan without land as collateral is usually used
for improvements on the mobile home itself. The amount extended
is limited only to the construction and repairs of the mobile
home which includes the cost of materials. This type of loan is
deemed quite risky for lenders because mobile homes location is
hard to track unlike an immovable property such as land which
definitely secures the credit and reduces pertinent risks.
The reason why lenders are unwilling to extend mobile home loans
is the likelihood that the borrower will default on payments and
become untraceable following release of funds. This being the
risk, the lamely secured mobile home loan is not extended by most
credit companies and lending institutions. Creditors extending
this kind of mobile home loan strictly require a number of documents
prior to approval. The second type of mobile home loan where land
forms part of the collateral and is enclosed in the agreement
get better chances of approval because this arrangement expose
creditors to a lesser amount of risk. A higher loan amount will
also be approved considering the valuation of the land.
There are certain requirements that a lender may impose on an
availee of a mobile home loan prior to its approval. The foundation
is the most common requirement which involves affixing the mobile
home to the ground; thereby removing the attached hitches, axel
and the wheels. Other lenders would even require the construction
of a concrete foundation. This is necessary so that a fixed property
will form part of the agreement. The mobile home should also be
in excellent shape when turned over as collateral. The heating,
air conditioning, and plumbing systems should be functioning as
well.
When applying for a mobile home loan, the applicant must be aware
that the proceeds are always lower compared to that of an
ordinary home loan and that the set of requirements are
different. Before taking up a loan, it is necessary to shop
around for rates and charges from creditors and lending
institutions in order to get the mobile home loan that best
fits your need for funds.
Fiction: It would be very easy for me to get all judgmental
here and talk about trailer park trash loans, but I won't.
The fact is I was raised by wolves in a trailer park and
am very sentimental about it - both the trailer park and
the wolves I mean.
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