Can You Buy a Manufactured Home with Bad Credit?

Buying a manufactured home in Alexander City can be a daunting task, especially if you're wondering how to finance your purchase.

Mobile home finance bad credit

One option to consider is a VA loan, which can be a great option for veterans and active service members. One question that often arises when it comes to VA home loans is whether they cover manufactured homes. The answer is yes, VA loans can be used to finance the purchase of a manufactured home as long as the home is permanently affixed to a foundation and meets the VA's guidelines. To get started on the path to homeownership, it's important to find VA lenders who are experienced in working with manufactured homes and can guide you through the process. Jaco Mobile Homes is a great resource for this, and can help connect you with the right VA lenders to help you get the home of your dreams.

Contact us today to learn more about how we can help you with your VA home loan for your manufactured home in Alex City. There are plenty of options available to help you find your dream home, even if your credit score is not up to par. Jaco Mobile Homes is here to help you get you in the home of your dreams! Contact us today so we can help you!

Here are some suggestions to get started on the right track towards purchasing your own home in Alex City:

What is a "Bad" Credit Score?

A bad credit score is typically any score below 630. If your score is below that, you may have difficulty qualifying for loans or lines of credit — and if you do qualify, you will likely pay higher interest rates. But your score is lower than average does not mean you can't buy a manufactured home in Alex City. 

Traditional Financing Alternatives

If you are looking into financing manufactured homes with bad credit in Alex City, there are a few things you can do to increase your chances of being approved for financing:

• Pay a higher down payment. A larger down payment shows lenders that you are serious about buying the home and have the financial means to do so.
• Another option is to get a cosigner with good credit. This person will be responsible for making payments if you are unable to do so, which can help convince lenders to approve your loan.
• You can also borrow money from a friend or relative. This may be a good option if you know someone who will loan you the money for the down payment and closing costs. Just be sure that the person is reliable and has no financial difficulties of their own. 
• You can also work on improving your credit score before applying for financing. This may take some time, but it will be worth it in the long run.

FHA Loans

If you are looking to buy a manufactured home in Alex City with bad credit, you can get your financing through an FHA home loan. With an FHA (Federal Housing Administration) loan, you can put down as little as 3.5% of the home's purchase price. Plus, the credit requirements for an FHA loan are more lenient than a conventional loan. So if your credit score is on the lower side, you may still be able to qualify — but expect to pay a higher down payment and monthly installments.

VA Loans

You may be eligible for a VA loan if you are a veteran. These loans are backed by the Department of Veterans Affairs and can be used to purchase a manufactured home. VA loans can be especially helpful if you have bad credit, as they don't require a minimum credit score for approval. Instead, the VA looks at your overall financial picture to determine whether or not you are eligible for the loan. If you qualify, you may be able to get a lower interest rate and more favorable terms than you would with a traditional loan.  

Requirements

You must meet a few requirements to qualify for a manufactured home loan with bad credit. First, you will need to have a steady income. This can come from employment, self-employment, disability benefits, child support, or alimony. You will also need to have a debt-to-income ratio below 50%. In other words, your monthly debt payments (including the new manufactured home loan) should not be more than half of your monthly income.

Conclusion

Buying a manufactured home in Alex City can be challenging if you have bad credit. But if you are determined to buy one anyway, there are some steps you can take to ensure that your credit score does not get in the way of your home ownership dreams. We hope this blog will help you navigate your low credit score and ensure it does not stop you from owning the home of your dreams!

Do you want to buy a manufactured home in Alex City or the surrounding areas, and you have bad credit? Call Jaco Sales Alex City at 256-500-4305 or fill out this form to speak with one of our sales associates and find the best financing option for your needs.