Bad Credit Manufactured Home Loan

Having bad credit is not the most conducive thing to have when trying to get a manufactured home loan. This doesn’t mean that you can’t obtain such a loan as there are a few things you can do to improve your approval chances with a fair interest rate. This is because home lenders do recognize that many people do have financial problems and are willing to work with them if it makes financial sense for the borrower. 

Filling out an online application is the first place to start. Find an internet mortgage loan service that submits your application to a multitude of different lenders. The service will then sort through any offers for which you may be pre-approved and return the four best offers to you. 

An advantage of using this type of service is that they normally do not pull your credit report at this time. Anytime your credit report is pulled it drops the score just a little. At this time you can decide which offer you like best and then contact that particular lender. If you have specified in your application that you have bad credit you will need to further describe your financial issues with the lending company officer. At this point you can work with the lending company to come to terms that both parties can accept. 

Consider going through a mortgage broker. Much like the online option they have access to different loan programs through different lenders. They can help sort through the different programs and find one that is workable for your situation. 

Another avenue to explore is finding a down payment assistance program. Neighborhood Gold and Nehemiah are two programs that may be able to assist you in getting a down payment for your mortgage. Their will be requirements that you will have to meet to qualify and you will need to make sure your lender will work with them, as not all do. Having a good down payment can go a long ways in helping you qualify for a bad credit manufactured home loan. 

Even if you currently have bad credit keep doing everything possible to increase that score. Do everything possible to keep your credit from being pulled. No more credit applications, whether for credit cards, a new car loan, or any other type of credit transaction. Make all your payments on time and pay off even small debts quickly. Divide up credit card debt amongst your different cards to avoid the credit hit that maxed out cards give. 

Knowing your credit score and how it rates is important during this process. You can request a copy of your credit report and score for free from the big three credit reporting services once a year. Here is the general breakdown of FICO scores: 

500 – 580 - Poor Credit - You should be able to get a home mortgage loan if you are willing to make a down payment, probably somewhere between 5-20%. You will probably need a sub-prime mortgage loan with a slightly higher interest rate. 

580 - 620 - Fair Credit - You're right on the edge. You may be able to get 100% financing or you may need a small down payment to make the loan work. Depending on how much money you put down, you may be able to get prime interest rate. 

620 - 640 Average Credit -You should get a 100% home loan financing. You should not need to have a down payment. You should be able to get a low interest rate. 

640 - 700 Good Credit - You should be able to be approved for a 100 - 125% home mortgage loan. You should be able to get a great interest rate. 

700+ Excellent Credit - You’re in the drivers seat! You should be able to get an excellent rate with excellent terms. Of course, all of these factors vary with each borrower depending on the size of loan you want and on your income and other factors. 

Getting a bad credit manufactured home loan is possible if you keep the above things in mind. Know your credit score and how that factors into negotiations you may need to have with your prospective lender. And even if you are currently denied the opportunity to get a home loan keep working on raising that credit score for future mortgage opportunities.