If you are the owner of a mobile home or trailer and want to get a loan, then you can turn your attention to such an option as mobile home title loans. Despite the fact that the mobile home is a place of residence, the loan is still considered more like a car title loan than a mortgage loan. You simply transfer part of the trailer rights to the lender until the loan is paid in full.
A mobile home title loan is one of the options for obtaining additional financing. If you are not very creditworthy, a secured loan can help you get extra funds.
How does a mobile home title loan work?
A mobile home title loan is a way of obtaining financing for people who do not have creditworthiness. Thanks to the collateral in the form of a mobile home, the borrower has a better chance of obtaining a loan. Mobile home title loan loans are granted by online loan companies. When submitting the application, the borrower must provide accurate information about the collateral, i.e. the mobile home.
What data is needed for a loan contract?
In the case of a mobile home loan agreement, you will need to prepare accurate data such as make and model, registration number and production date. Many financial institutions limit the age of the mobile home, which can be collateral, to 12 years. Mobile home title loans are most often granted by non-bank institutions. Their design is therefore similar to a typical payday loan. The only difference is the amount, which is usually higher than in the case of a typical payday loan. If we decide to hand over the mobile home as security for such a loan, the lender becomes the owner of 51% of the collateral when the contract is signed. After the loan is paid off, the lender must transfer all property to the one who took the loan.
Can I use the mobile home that secures my loan?
Until recently, it was not possible to use the collateral that secured the loan. Currently, such a vehicle can be used freely. All because the mobile home is very often used as a means of living and as such, it affects the borrower’s place of residence.
Can you take out a leased mobile home loan?
Many people wonder if you can take out a loan against a leased vehicle. The answer is short. It is not possible. All because the leasing mobile home is not owned by the person applying for the loan, but by the leasing company. And if you want to secure a mobile home title loan, it must be owned by the person applying for the loan.
Mobile home title loan – requirements
In order to fill in the application for a mobile home loan, in addition to the above-mentioned environments about the mobile home, you need to provide:
- ID card;
- US citizenship and place of residence in US;
- valid bank account, phone number and email;
- proof of income.
To get a mobile home title loan, you need to follow a few simple steps
- Visit lender’s website.
- Choose suitable loan term and loan amount.
- Fill out the application form.
- Wait for lender’s response.
- Transfer 51 % of mobile home rights to the lender.
- Sign an online contract and send it to the lender.
- Get the money transferred to your bank account in 1 business day.
Is a mobile home title loan profitable?
A loan secured by a mobile home is a good solution that we do not limit the use of the home. With small amounts, it gives you a chance to get better loan terms, and in the case of people who have problems getting a loan, it is often the only way to obtain financing.