This is a big question for Canadian families. If you've been renting and are ready to finally become some form of a homeowner--be it a mobile home, or a traditional one--can your credit hold you back from achieving this dream? For so many it feels unobtainable. We all suffer from financial mistakes, and some of these can really hit our credit hard. It would be nice if credit didn't have such a tough role to play in what we can and can't have in life. If you can afford it--that is what should matter, right? You'd think, but many times over this is not the case. So, can you really afford a mobile home with credit problems?
Bad credit is not permanent, you can overcome it. Finding a lender with bad credit can be rather difficult though. However, there are programs available to help. If you're a Canadian family living within the US, you might be eligible for the USDA financing. You might also be eligible for assistance through a state program or rather, HUD. If you reside within Canada you're going to want to look for similar kinds of lenders that work with those living in rural areas.
Financing a Mobile Home With Poor or Fair Credit
This can be a challenge under the best of circumstances, but for those families with dented credit--they have to prove their financial ability to pay. They can't have late payments and they have to be flexible when shopping for the mobile home they want. There are steps one should take to prepare for this big plunge, so let's list those for you now. This might make the whole process less vexing and definitely less stressful. We all make mistakes, so don't let the past make you feel like you deserve to be treated less than any other customer! We want you to also remember, while you might be able to get financing with bad credit, you don't want to get sucked into something you're not going to be afford. Poor credit leads to higher interest rates and more. Don't jump on the first loan offered--this would be a big mistake!
Pull your credit report and take a good, hard look at it. Look for any discrepancies, and definitely look for charges or actions which you might have been falsely identified for
Devise a way to come up with a decent down payment. This could be through a trade or some other collateral you might hold.
Work with a credit specialist to try and clean up some of your credit concerns. There might be some items on your report that can be legally removed and dramatically improve your credit score.
If you have to choose something smaller than what you really want, choose it. You can always work your way up into what you really would like a few years later. Remember it takes patience and hard work to beat bad credit and climb out of the hole.
The most important tip we can share with families who are attempting to get approved for a mobile home is to not be suckered. There are those who will prey on families who are vulnerable. Keep your bearings, think clearly, and plan before jumping into anything. You're trying to build a new life, not create another with even worse problems! You will get that home of your dreams when you think ahead.