Mobile homes or caravans are very popular these days and the demand is increasing. Fortunately, the high competition between the dealerships and the new vehicles that are added to the market every month are keeping prices within a reasonable range. But can tenants afford loans for purchasing mobile homes or caravans? Though it might not be as easy for them as for homeowners, tenants can also get finance for a mobile home purchase. Let’s see how:
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Homeowners can easily resort to home equity loans or refinancing to obtain a good amount to finance the purchase of a mobile home or caravan at a very inexpensive rate. But tenants cannot resort to equity and thus, need to resort to other types of loans. Even though tenants will not be able to obtain such inexpensive financing, they will still be able to obtain the funds needed to purchase their desired home on wheels.
Secured or Unsecured Loans?
Though tenants cannot obtain secured loans based on equity due to their lack of ownership, when purchasing a mobile home or caravan, the vehicle can be used as collateral for the loan which turns such loans into secured loans too. Tenants then can obtain either secured or unsecured loans and thus it is important to understand the differences between these two types.
Secured loans are guaranteed with a property. In this case, the property guaranteeing the loan is the mobile home or caravan. If you fail to meet the monthly payments on the loan the vehicle can be repossessed so if you plan to use the vehicle as your only residence you may want to resort to an unsecured loan. On unsecured loans the vehicle does not guarantee the loan and therefore the lender cannot repossess the mobile home or caravan and in order to recover the investment in the event of default, a much longer legal procedure would be required.
Moreover Unsecured Tenant Loans are approved much faster than secured loans which means that you can have your dreamed mobile home or caravan within a couple of days while with secured loans it can take weeks to process the whole mobile home loan or caravan loan application.
Online Brokers Can Aid You Get Approved
There are many online brokers that can help you get approved for your mobile home loan. Brokers are intermediaries that will contact many lenders or provide you with access to many lenders for you to apply to. Working with a broker can be very advantageous because by comparing many different loan quotes you will be able to obtain the best available deal.
By searching for the lowest rate and most advantageous terms you will be able to save thousands of dollars. So, even if you do not want to work with a broker, try and search for different lenders yourself and do not go for the first offer you receive. Sometimes, investing some time on researching for the right lender and tenant loan will imply huge savings while saving some time can cost you a lot of money.