With mortgage rates continuing to rise and the cost of real estate at a record high in most of the United States mobile home Buyers are in need of different ways to pay for their mobile home within the greater Sarasota Florida area.

Where can a mobile home Buyer go to get financing for a mobile home on leased land in Florida?

Does financing even exist?!

This is an important topic to discuss but first, we need to fully understand what type of mobile home we are looking to finance so we can best understand the financial obstacle that needs to be overcome.

Mobile Home for Sale in Sebring

Mobile Home for Sale in Sebring

With record low interest rates, so many home Buyers are looking to maximize their buying dollar by obtaining a low-interest loan for their home mortgage.

The question, though, that needs to be answered is; does a traditional home mortgage application for a mobile home on leased land within the greater Sarasota Florida area?

Mobile homes on leased land in and around the greater Sarasota Florida are viewed as and taxed as personal property and not real property as the ownership of these homes comes with a title and not a deed when purchasing them. If this sounds awful like buying a car instead of buying a traditional home then you would be correct as mobile homes in Sarasota Florida are titled at the Department of Motor Vehicles.

With this understanding, it is safe to say that the loan process is not like traditional home loans in the state of Florida whatsoever.

The reason why loans on mobile homes that are located on leased land are so different is that many times lending institutions will think that the mobile home can be picked up and moved at any time for whatever reason and thus will have a harder time funding mobile homes when they are on leased land.

Here, in the state of Florida, it is not allowed to move a mobile home off of leased land that is older than 20 years of age due to most counties in the state of Florida not providing permitting for the transportation companies to be able to move a mobile home of that age.

Even though the average age of a mobile home in the Sarasota Florida area is well over 20 years old this does not mean that the traditional loan companies will see past that and provide a mortgage to a mobile home on leased land.

Oddly enough, this theory changes with many of these lending agencies if the mobile home on leased land includes not only the home but the land that the home sits on as well. The reason for this is that, in this situation, the mobile home and land attached will then qualify as real estate and not real property so the lending agencies will view this as property they would be more willing to loan on.

Crazy, huh?

There are mobile home lending agencies who will lend on a mobile home in the greater Sarasota Florida area when the mobile home is located on leased land. These lending companies are known as third-party lenders and carry their own credit, down payment, and interest rate requirements that may be different from the traditional banks that normally would loan on a traditional stick and brick home.

There are also other ways to acquire a mobile home through different types of loans. 

Chattel Loans

Chattel loans work similarly to traditional mortgages in that your mobile home can be seized if you fail to pay your mortgage on schedule. The good thing about a Chattel loan is that your house doesn’t need to be affixed permanently. Chattel loans can be used whether you own the land or rent a lot.

Florida Mobile Home

Florida Mobile Home

Personal Loans

There are many types of personal loans but because most of them don’t require collateral, the interest is always higher compared to traditional loans. There are also secured personal loans if you want a lower interest rate. Some loan companies accept mobile homes as collateral for personal loans.

Borrowing money from your family, friends, and relatives can be another option if none of the above fits your situation.

One of the many great things about buying a mobile home on leased land is that there are several different ways to purchase and move into your new property that is not normally available to single-family homes.

Having several different options and being educated in all of them will certainly put you ahead of the curve when looking at buying your new mobile home!

When looking at financing a mobile home located on leased land within the greater Sarasota Florida area every Buyer should understand the limitations that come when looking for financing a mobile home located in these parks.

By having a good idea of what is and what is not available for financing the Buyer will have a much better idea of where they need to be financially when looking to buy a mobile home in the Sarasota Florida area that is located within a land leased mobile home park.

The Mobile Home Dealer are licensed mobile home brokers in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, please get in touch with us by clicking this link. You may also visit our Facebook Page and send us a message.

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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