How to Refinance Mobile Homes in a Park With Bad Credit?

When you are trying to refinance a mobile home in a park with bad credit you will need to approach a lender that specializes in mobile home lending. There are several lenders that only offer mortgages on mobile and modular homes. By going through a specialized broker to refinance your mobile home, even with bad credit, the chances of being approved will increase dramatically. Many banks do not like to offer a mortgage on a mobile home unless the owner also owns the land that the mobile home is on. They feel that it is too risky if the owner is not attached to the property. This will be more so if you are suffering from bad credit.

Why Are Mobile Home Refinancing Options So Limited, Especially With Bad Credit?

Many lenders feel that mobile homes decrease in value at an alarmingly high rate. While this may not be true at all, the consensus among the mortgage industry is that they do decrease rapidly. Once you have made several years worth of payments on your mortgage and wish to apply for a refinance to lower your rates, you will have to prove the value of the mobile home. Again, this is why it is very important to use a lender that is type specific to the mobile home industry.

Will Bad Credit Mean I Have To Pay Higher Interest Rates?

All lenders will charge a higher interest rate if they feel there is risk involved in the loan. This is especially true if you are considered to have bad credit. It is important that you verify that the new mortgage will, in fact, not cost you more than your current one in terms of interest.

Related posts:

1. Can I Do A Bad Credit Refinance On My Mobile Home?
2. How Can I Get A Bad Credit Refinance On A Second Home?
3. Can I Get A Bad Credit Loan Home Loan With Low Interest?
4. How Do I Refinance Manufactured Homes With Bad Credit?
5. How Can I Refinance Investment Properties With Bad Credit?