Are you exploring the possibility of buying a mobile home in California but concerned that a lower credit score might hold you back? You’re not alone. Many potential buyers worry about whether they can qualify for a mobile home loan, especially when their credit isn't spotless. The good news? There are still viable options for financing a mobile home, even with less-than-perfect credit.
Credit scores typically range from 300 to 850. While a score above 700 is considered good, mobile home financing in California is often more flexible. Some mobile home lenders are willing to work with scores under 600, especially if other qualifying criteria are strong.
Unlike traditional mortgages, loans for mobile homes—especially those not affixed to land—are often categorized as personal property loans. This classification offers different qualification standards, opening doors to more applicants.
When financing a mobile home in a park, it’s essential to know that government-backed options like FHA or VA loans typically don’t apply unless the home is permanently affixed to owned land. However, many private lenders provide financing with credit scores starting as low as 580 or even lower in some cases.
Depending on your score, you might be required to make a higher down payment. For instance, a credit score below 600 may still be acceptable if you're prepared to contribute a down payment of 35% or more.
Credit unions and specialized lenders may offer more lenient requirements compared to traditional banks. These institutions may take a more comprehensive look at your financial picture, giving you a better chance at approval.
Another unique aspect of mobile home loans is the use of a "blended credit score." This feature averages the scores of all applicants—so if you're applying with a co-borrower who has stronger credit, it can significantly improve your chances.
Including a co-borrower who plans to occupy the mobile home can be a major advantage. The blended credit scoring method is especially beneficial when one applicant’s score is lower. Together, your combined income and average credit rating can help secure better loan terms.
Qualifying for a mobile home loan in California with a lower credit score is absolutely possible. Whether you're looking into financing a mobile home in a park or exploring other loan options, there are paths forward. The key is understanding your options, considering alternative lenders, and being proactive about your credit.
If you’re ready to explore your options, contact Smart Money Mortgage today or call us at (866) 900-6868 to speak with a loan expert.
