5 Mobile Home Financing Mistakes to Avoid

Mobile Home Financing Mistakes to Avoid

A common misconception with mobile home financing is that it’s difficult to find. That’s far from the truth. In fact, falling for such a falsehood is perhaps the first of several mobile home financing mistakes to avoid.  

We’ll run down some other ones for you. Together, they help provide a roadmap to your new mobile home in one of the country’s many welcoming communities.

1. Being Impatient

Getting a loan is never a quick and easy proposition. Finding the right mobile home, having it inspected, identifying a lender — it all takes time. Don’t let your patience get the better of you. Understand going into the process that anything worth having is worth waiting for. 

Trying to rush things or, worse yet, look for shortcuts, may very likely complicate the process for you.

2. Carrying a High Debt-to-Income Ratio

Do you know your personal debt-to-income ratio? Many people don’t, even though it’s important. That’s because lenders seek a debt-to-income ratio no higher than 45% from potential borrowers as one measure of assurance that the loan will be repaid.

According to the Consumer Finance Protection Bureau (CFPB), you can figure out your debt-to-income ratio by taking all monthly debt payments and dividing them by your gross monthly income. 

If you have a $1,200 per month mortgage payment in addition to a $150 per month auto loan, $150 per month student loan payment, and $250 going to the rest of your bills, you have a debt load of $1,750. If your gross monthly income is $4,167, your debt to income ratio is 42% — just under the 45% threshold. 

If your debt-to-income ratio tops 45%, consider various ways to reduce it. That may include:

  • Paying off loans ahead of schedule, possibly by using your annual tax refund
  • Consolidating multiple high-interest loans into one larger loan offering more reasonable rates
  • Putting together a detailed debt reduction plan with the aid of a financial advisor

MORE: Another critical figure to keep an eye on is your credit score. If it isn’t as high as you’d like, or must be improved before you qualify for mobile home financing, the information in this PDF may help.

3. Not thinking “Location, Location, Community”

It’s the first real estate advice anyone ever receives: “Location, location, location.” Nothing is more important than location, we’re told. 

And that’s mostly right. 

Even if you’re busy calculating your debt-to-income ratio, organizing your finances, and filling out loan application forms, don’t skimp on researching the area you’re considering as your next neighborhood. 

Make yourself aware of community rules, guidelines, amenities, and more. Brush up on anything that may impact your decision to buy that particular mobile home in that specific mobile home community.

4. Overdoing the Optimism

When is optimism a bad thing? When it causes you to look at a mobile home in serious need of many different repairs and convincing yourself it’ll be great once you can unleash the hidden DIY expert within. 

You can bet that a fair portion of the roughly $400 billion home improvement industry pulls in each year goes to DIYers who bite off way more than they can chew. One survey found that homeowners underestimate home improvement costs by an average of 34%. That’s the kind of mistake that can wipe out all of your careful research into mobile home financing. 

5. Settling for Any Lending Agent

Remember those shortcuts we cautioned you to avoid in mobile home financing mistake #1? One risky shortcut you might consider is settling for the first lending agent willing to meet with you.

You must obtain your mobile home financing from someone you trust, can easily speak with, and who is willing to take the time to understand your needs fully. Finding this person requires some due diligence on your part. Seek referrals from family and friends, talk to multiple lending representatives, and ask for references. 

If any interaction with the agent or company doesn’t feel right, chances are it’s not. Simply thank them for their time and move on to the next prospective agent. Soon enough, you’ll be in your new home.

MHVillage Helps You Get It Right


There are more mobile home financing options than you think, so accept nothing less than the star treatment you deserve. Begin your journey by finding your new home right here at MHVillage.com.


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