If you have a mobile home that was built pre-1977, your best option is to sell it for cash. Let me explain why. Mobile homes that were built before 1977 don’t have “HUD” tags and don’t meet the traditional lending requirements for most mortgage lenders. This is going to limit your buyer pool a lot. The average American is not able to afford $40,000 or more cash for a mobile home. This is a lot of money for any American. Remember, mobile homes are some of the most affordable housing options that we have to offer in America. How many people do you think are in this category and have $40,000 or more dollars sitting in the bank? Anything built in the 80’s or newer will be a lot easier to sell. Most traditional banks will be willing to lend on a property like this and it will open up your buyer pool greatly. In the process of selling your mobile home, many people are going to ask about financing. I wrote a few quick tips about financing your mobile home here below. Many buyers are going to ask you for financing. Depending on your current situation, selling your mobile home for financing can work. However, there are some things to be aware of:
- Make sure the buyer does not have any evictions on their record or a prior history of not paying their loans.
- Make sure they make at least three times the space rent plus your mortgage payment so you don’t ever have to worry about them having enough money to pay for the mobile home.
- Make sure they give you a down payment of 50% or more for the property so THEY have something to lose as well.
Now, financing a mobile home is not for everyone. I can tell you from experience that it can be a lot of work if you don’t find the right buyer. On the plus side, you are going to make some interest on the monthly payments for your mobile home. However, many people think they are “renters” and not “owners” of this mobile home and will call on you to fix certain problems, even after they have bought it! In extreme cases, some tenants will even try to rent out or move the mobile home illegally out of the park while they are still financing it from you. I once saw a lady try and steal a mobile home out of the park at night while park management was away!It is more risky than just selling for cash.
That is why the best option is to sell your mobile home for cash. If you have a home that is built after 1977, you have a better chance of getting lending from your home. However, depending on your situation, you still may want to consider whether or not you want quick cash for the home or you are willing to wait for someone to qualify with a lender. Money up front is ALWAYS better than money down the line. So if you have the opportunity, take the cash for your mobile home and walk away with a lot less stress and time wasted.