So You Want to Refinance Your Mobile Home and Land?

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It used to be that you would have a hard time trying to get a loan for a mobile home. But with the number of owners increasing and the quality of the homes getting better, it is not as difficult to obtain financing as it used to be.However, if you are trying to get refinancing for your mobile home, you may still find it difficult to obtain a loan. There are still a lot of options available for the resourceful home owner if you are willing to look a little deeper.One of the best options available is if you own the land that your home is located on. Banks are more willing to refinance your mobile home and land than just the home by itself. The lenders typically view a manufactured home as an asset that will decrease in value whereas land generally is viewed as an asset that will increase in value.This is not to say that you cannot get refinancing if you happen to live in a mobile home park, it is just easier to obtain if you happen to own the land along with the home.The first thing is to get an appraisal of your land, both with and without the manufactured home. If the land in free and clear, you can usually get 100% of the appraised value. If you still owe money on the land, then the amount you can borrow will be reduced.Lenders are usually ready to process your loan if you use your land as collateral. They will want to see your title, or loan documents. They will also need to have a current appraisal. They may accept yours if it is current, but usually they will conduct their own.If you own a lot of land, you may want to do a lot split before taking out a second mortgage. This way only one acre is tied up with the loan. Then, if something were to happen, only that one acre is affected, not the rest of your property.One final word of caution: It may be tempting to take out a second mortgage or refinance your mobile home and land, but take care not to overextend yourself. You could end up in serious financial trouble and end up losing your home and your land.