Mobile Home Equity Loan Options

Sourcing for funds to solve certain financial challenges in life can be quite difficult. One of the major ways to raise funds is by requesting for loans and grants. Loans can be issued out by individuals, groups or financial institutions. However, before you can request for loans, you most times need to have a valuable collateral.

Do you own a mobile home that needs fixing and you're looking for reliable ways to source for funds? I'm glad to inform you that you can take home equity loans.

Mobile home equity loans can be used to solve your pressing financial needs while you get to pay back in installments. It is important to understand the necessary steps to take when planning to cash out on home equity loans.

There are basic requirements to follow and a good understanding of the pros and cons of mobile home equity loans will help you maximize the benefits attached.

There are varieties of mobile home equity loan options and I will take the time to analyze that in this guide. You need to learn how to explore each of these options.

The Meaning of Mobile Home Equity Loan - Link

The Meaning of Mobile Home Equity Loan
The Meaning of Mobile Home Equity Loan

Mobile home equity loan is a form of mortgage that involves a person (borrower) using equity attached to a mobile home as a collateral when seeking for loans.

This type of loan is used to solve financial challenges that are associated with fixing household repairs. They can also be used to clear debts from student loans and also pay for outstanding medical bills. Financially institutions such as banks don't really value mobile homes like other landed properties and that's why home equity loans are very important. They come in handy for home maintenance.

The worth of your mobile home property stands as the collateral against the loan you want to receive. It gives the financial institution issuing out the loan a form of assurance that you will pay back the loan in due time. However, if you fail to pay back, the bank involved has the right to kick you out of the home and also seize the property while they auction it off so as to get their money back.

Types of Home Equity Loan Lenders - Link

Types of Home Equity Loan Lenders
Types of Home Equity Loan Lenders

Loans can be issued out by an individual or a group of people but financial institutions are the most reliable and safe home equity loan lenders. You have to be very careful when applying for home equity loans because it can be very risky.

Home equity loan lenders are financial entities that gives out home equity loans or lines of credit to their valued customers. It is important to ensure these types of financial entities are genuine before transacting with them. This will prevent you from running into trouble associated with financial debts. Examples are;

  • Credit Unions
  • Commercial Banks
  • Private Mortgage Lenders
  • Veterans Administrations

These home equity loan lenders are reliable and legit.

Mobile Home Equity Loan Requirements - Link

Mobile Home Equity Loan Requirements
Mobile Home Equity Loan Requirements

To get started, you need to figure out what qualifies you to request for home equity loans. You need equity in your home so as to qualify for a home loan.

Home equity loan lenders needs an assurance that you have the capacity to repay a loan before they issue it out. So, they will value the worth of your mobile home property to determine if it is good enough to stand as a collateral. They will also check is you have an adequate source of income. Furthermore, a good credit score is required if you're applying for a home loan. The financial institution giving out the loan will also check your bills payment history to know if you pay on time.

Main Uses of Home Equity Loans

Home equity loans can be used for various functions;

  • The funds can be used to repair and renovate your mobile home.
  • You can use the funds to consolidate higher interest debts.
  • You can use the funds to cover household related bills.

The Best Mobile Equity Loan Options

Here are the best mobile equity loan options available

US Bank - Link

US Bank
US Bank

US Bank in the United States offers home equity loan as a form of assistance to their valued customers. They issue out up to 15 years home equity loan to anyone who is qualified with an APR of 4.0%-6.0%. They also issue out business loans with competitive rates of close to 30-years. This means you can get up to the value of $750,000 USD in loan options, provided you meet the requirements.

As a US Bank customer, you can apply for home equity loans online due to their excellent customer service. You can chat with a trained customer support if you are applying via the mobile platform. All borrowers are likely to pay NO application fees or annual charges. You can get special interest rate discounts through reward programs. This is one of the best options available.

CitiMortgage Financial - Link

CitiMortgage Financial
CitiMortgage Financial

This is another great option that requires the loan borrower to visit the financial institution in person. The borrower can also call or apply via the online portal.

A loan officer is specially attached to every individual seeking for loans through CitiMortgage Financial. This loan officer offers his or her professional consultancy service to help guide the individual seeking for a home equity or business loan.

Loans can get pre-approved with this amazing option and the minimum loan you can get is $10,000 USD while the maximum loan you can acquire is $8-million.

There are several products available but the level of your credits score determines which product you can benefit from. Income ratio to maximum debt is 43%.

Your location and the type of loan you're applying for will determine the amount of initial charges when requesting for a loan through CitiMortgage Financial. The regular application fee charges is $100 USD. It is not free like applying via banks.

Finally, a "HomeRun Loan Program" offers discounts on rates and closing charges.

PenFed Credit Union - Link

PenFed Credit Union
PenFed Credit Union

This financial company is one of the best options to consider when seeking for home equity loans. The loan term offered can go as high as 20 years and you can request for loans in the region of $500,000 USD depending on the value of your collateral. In the case of a mobile home, it will be more value if you own the land.

PenFed loan to collateral value ratio is 80.0% to 90.0% depending on the clients offering the deal. The interest rates is also very low when compared to other options. It can be as low as 5.40% depending on the type of loan involved.

It also has an online platform where borrowers have the access to tender their application. You might also have to cover for the closing cost. Overall, I like this option and will highly recommend checking it out if you need home equity loan.

Navy Federal CreditUnion
Navy Federal CreditUnion

This financial institution has close to 9-million registered members across the world. It has a good and reliable equity loan option for military officials and their family. It has an excellent customer support service and also offers several loan products such as the VA and FHA loans. It is a great choice for service members.

This home equity loan also covers rent, utility and household bills such as phone and electricity bills. The closing costs is also minimized while borrowers can get loans worth 100% of the home value and a loan amount of up to $500,000 USD.

You don't need to pay a loan application fee and loan terms can last for 20 years.

KeyBank - Link

KeyBank
KeyBank

This is a great option if you're looking for mobile home equity loan. KeyBank will allow you borrow loans worth 90% of their home's value. It is one of the best way to improve your mortgage. The interest rate is as low as 6.65% in certain states and regions while the terms can go up to 30-years. You can also get rate discount if you have savings and checking accounts. This option also requires you to pay closing fees, insurance and mortgage taxes.

The Pros and Cons of Home Equity Loan - Link

The Pros and Cons of Home Equity Loan
The Pros and Cons of Home Equity Loan

It is important to understand the pros (advantages) and cons (disadvantages) of mobile home equity loan before applying for one. Here is what you should know;

The Pros of Home Equity Loan :

  • It offers low and fixed interest rate.
  • Home equity loan is excluded from taxable income.
  • The loan is quite flexible as it can be used for several purposes.
  • You will get paid in cash whenever you apply for home equity loan.
  • It is a form of secured loan acquisition through your house valuation.
  • You can acquire a huge amount of money within a short period of time.
  • You will have access to more funds than personal loans and credit cards.

The Cons of Home Equity Loan :

  • The closing fees and mortgage costs are quite expensive.
  • Overall it's a debt and that can come with a lot of stress.
  • The risk involved is a bit high if you fail to pay back the loan.
  • Your mortgage can go "underwater" if the value of your home declines.

Conclusion

Mobile Home Equity Loan Options
Mobile Home Equity Loan Options

You must understand what you are doing when applying for home equity loan. You have to analyze the pros and cons so as to get the best home equity loan.

There are several home equity loan options but the ones listed are reliable.

Kindly share your thoughts about home equity loan in the comment section.

Thoughts on "Mobile Home Equity Loan Options"