Generally, if you combine the purchase of land and a mobile home into one mortgage, you can increase your chances of qualifying for a home loan as well as reduce the interest rates applied to your loan. The reason behind this is that land adds collateral to your mobile home purchase and reduces the risk to the lender. Reduced risk means that the lender is able to quote you at a lower interest rate. The process of combining land ownership with your mobile home purchase works whether you are a first time buyer or considering re-financing an existing mortgage. You may also have the choice of financing your purchase through a traditional real estate mortgage or with special land-home financing that's especially designed for manufactured homes. Most mobile home buyers arrange financing through the retailer who sold them their home. These retailers usually maintain business relationships with a number of lending institutions from large national lenders to local institutions and can assist you in preparing and submitting your credit application. Typically, mobile home loans require a 5 to 10 percent down payment and the interest rate is usually determined by many factors including your credit, whether your home is a single-wide or double-wide, the state of your residence, and the value of your home.
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