Mobile Home Loans

A mobile home loan in Michigan is available to residents who seek to purchase a mobile home but do not have the funds necessary on hand to purchase it outright. Mobile home loans in Michigan are considered chattel mortgages, which are loans for personal property associated with real estate. Chattel mortgages require a bill of sale as opposed to a purchase agreement. This state uses the bill of sale to document all the lending and financial information concerned with the chattel mortgage. Borrowers here have limited lender selection.

Conventional lenders, such as banks and credit unions, steer away from offering these loans because of the depreciation of the homes. Depreciation is the value of an object decreasing over time. Unlike real property, which generally increases in value over time thus creating a stable market, mobile home loans in Michigan are riskier and limited. Banks will offer these at a higher rate and require a significant amount of money down. The older it is, the less money there is available for a mobile home loan in Michigan.

Whenever we seek to make such a monumental decision as this, we need to remember that, "By wisdom a house is built, and through understanding it is established." (Proverbs 24:3) It is always wise to seek as much information as is available and to seek the Lord before entering into such a venture.

Borrowers must typically provide a 10%-20% down payment for approval in Michigan. There are grants and other programs available to borrowers looking for mobile home loans in Michigan to meet this requirement. It is advised that a borrower seeking down payment assistance here, contact their lender for referrals of non-profit organizations offering such programs. A one time gift from a friend or family member will also qualify a borrower. Borrowers with less than perfect credit may want to improve credit scores to avoid a larger down payment requirement prior to applying.

With property values skyrocketing in the state of Michigan, more buyers are turning to these types of homes for their residences. These can either be placed in a mobile home park, or placed permanently on purchased land. If the home buyer wishes to permanently affix the mobile on land, they will become eligible for a traditional real estate mortgage loan from a conventional lender. This allows the borrower to forgo application of a mobile home loan in Michigan with large down payment requirements, and instead allows them the luxury of creative financing that so many other borrowers in Michigan receive prior to the purchase of a home.

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