Our team are often asked if it is possible to get a mobile home or manufactured home loan if you have bad credit. While bad credit can make getting traditional bank loans difficult, many hard money lenders work with individuals with bad credit scores. Private real estate lenders such as those who specialize in hard money loans have more freedom to offer funding to anyone that they chose to work with. Whereas traditional banking institutions are much more strict with who the lend to.
If you are looking to receive a mobile home loan / manufactured home loan and are worried about your credit score, it is important to understand that credit score isn’t the only factor when it comes to home loans.
Having a high credit score can definitely be a benefit if you are looking to receieve a standard loan from a traditional banking institution but it isn’t the only thing that matters. When it comes to private real estate loans such as hard money loans, fix and flip loans, or other types of private real estate loans, your credit score isn’t as important. A private real estate lender can decide who they would like to fund and have much more freedom to lend to anyone, even if they have a poor credit history.
What Does Credit Score Represent?
If you are looking to get a manufactured home loan but have a bad credit history it is important to take a look at what your credit score actually represents. A credit score is actually made up of a variety of different activities so these different activities can alter your credit score but by taking a closer look at the factors can give you a better understanding of an individuals history with credit. Below are a few of the activities that make up credit score:
- Amount of debt an individual has.
- How timely an individual is with their credit payments.
- The different types of debt accounts an individual has such as credit cards, personal loans, mortgages, leases, student loans, medical bills, etc.
- How long the individual has been using the credit account. The longer the history the better.
- The percentage of a credit limit that the individual is using.
- And more.
As you can see, there are many different activities that go into an individuals credit history which is why private real estate lenders will work with individuals with bad credit history.
How To Get A Manufactured Home Loan With Bad Credit
Now that you have a better understanding of credit and what activities impact your credit score, it is important to understand that getting a manufactured home or mobile home loan is possible even if you have bad credit. Your credit score isn’t the only thing looked at when lenders are making a deal, and often times lenders are willing to work with those with bad credit.
If you do have a poor credit history you can expect that loan lenders will offer you different terms compared to someone with a history of paying back real estate loans. These terms could raise interest rates, require a higher down payment, or other alterations to make the lender feel more comfortable.
These changes to terms are important to understand before apply for a loan quote, but often times these deals will be very flexible and can be discussed with the lenders to find the best deal for both parties. At the end of the day, credit score isn’t everything. And if you are looking for a manufactured home loan or mobile home loan and you have bad credit then it is still possible to receive funding. Apply for a free manufactured home loan or mobile home loan today!