Investing in Mobile Homes

[Yunet Coto]

Hello, I am 22 years old currently in college and also working full time. I have no experience investing in real estate. I was doing some research and have seen that Mobile homes are good to start off.

I have a good credit score, however I have no money for a down payment. How possible is it that I would get approved for a loan to buy a mobile home.

My plans are to rent the mobile home.

[Ben Braddock]

I own a large mobile home community (park) in NC.  I'm not aware of any financing for mobile homes as rental properties.  It is difficult for many owner occupants even with good credit to get loans for mobile homes because they are not secured by the land that they sit on.  A loan on a mobile home not secured by land is called a chattel loan because the property is movable.  If you are going to invest in mobile home rentals it really needs to be with cash and you need a good relationship with the land owner.  In our particular case we manage all mobile home rentals in our community as a requirement of any investors.

Mobile homes are a tough nuanced business.