Can You Buy A Mobile Home With Bad Credit?

For many people, moving to a mobile home means living a debt-free life. Yes, most mobile homes are sitting on leased land but a monthly rental is not a debt as long as your payment is updated. It is considered a charge for your monthly use of the land. It will only become a debt when you miss your due date.

Since people want a debt-free life, most successful mobile home purchases are made through cash payments. Most people who buy mobile homes budgeted for a couple of years saved enough money and then purchased their new homes with cash. Mobile homes are far cheaper than conventional onsite houses that’s why many single people and young couples manage to save between $15,000 to $30,000 in just a couple of years.

But what if cash payment is not an option for you? Can you buy a Sarasota Florida mobile if you have bad credit?

Unsure of what credit scores are needed to qualify for a mobile home?

Rest assured, you aren’t alone!

When looking at buying a mobile home in the greater Sarasota Florida area it is important to know exactly what it is and what is not before we get started.

Mobile homes on leased land in the state of Florida are viewed as and taxed as personal property and not real property.

What this means is that these mobile homes follow the same transaction process as that of a vehicle within Florida as mobile homes have titles associated with the purchase of the home and not a deed.

Most mobile home purchases on leased land are cash transactions.

In fact, for us here at The Mobile Home Dealer, only one out of every 15 sales is completed with some type of financing associated with the purchase of the home.

When cash is involved in the purchase then there are certainly no credit requirements!

Does that mean that the Buyers credit score is totally irrelevant to the purchase of the mobile home when it is located on leased land?

Not necessarily.

The reason why the Buyers credit score is still something to focus on is that every resident of a mobile home park needs to become park-approved prior to closing on the mobile home.

Each mobile home park has its own version of the park approval but most parks will check the same three things for the applying resident which are the applicant’s credit history, criminal background, and income-to-lot rent ratio.

Each mobile home park will have its own credit requirements for park approval so it is of utmost importance that all Buyers check with the park prior to buying the mobile home they are interested in to ensure they understand all of the requirements that are associated with the approval process of the mobile home park they are interested in living in.

Most mobile home parks will approach the approval process with, what is referred to, as a “full picture” approach. What this means is that parks will take the applicant’s income, credit score, and criminal background together to determine the status of the applicant’s park approval.

We certainly suggest that if you or any Buyer for that matter are unsure of what your credit score is go and pull a free credit report prior to applying for any park to see exactly where your credit score is and if it needs to be worked on prior to applying for park residency.

To people who are planning to move into mobile homes within the next two to three years and have bad credit, there is always an option given enough time to prepare. 

Depending on your current job and financial situation, there are hundreds of ways to save money for a mobile home in the next two to three years.

Get rid of discretionary expenses. Many financial experts suggest that this is one of the majority of reasons why people, and even families, are not saving money. Check your monthly income and buy only the things you and your family need.

Decrease essential bills. Why pay for a higher Internet and cable package when you seldom use them? Turning off lights when not in use can save electrical bills, same with water usage. There are free ways to call your friends, families, and relatives so why spend money on phone bills?

Lifestyle check. How often do you go to fancy restaurants and bars? Will your monthly income support this kind of lifestyle? How much money can you save if you cut this activity off?

Budget wisely. Having a list of your daily expenses on the spreadsheet is one of the most effective budgeting methodologies and in fact, many people are doing this. How much money did you spend today and how much did you earn? You can see this if you have everything on spreadsheets.
Find ways to generate extra income. If you really want to hit your target of buying a mobile home in the next two to three years, find ways to generate extra income. There are part-time jobs everywhere. if you have a full-time job, getting an extra two to four hours may not be really bad.

Knowing exactly where you stand prior to moving forward may certainly cut down the time and frustration associated with the park approval and can, in turn, lead you to success in the mobile home park approval process.

This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.

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