Can You Afford A Mobile Home With Bad Credit?

Becoming a homeowner, mobile or traditional, is a big step. If you've been renting and are ready to become a mobile homeowner, the last thing you want to hold you back from this dream is your credit score.

Everyone makes financial mistakes, but some can hit your credit score hard. Credit scores have a huge role in most financial decisions you will ever have to make as a Canadian. You would think that being able to afford a home is all that matters when purchasing one. However, this isn't always the case. The issue is that it is difficult to reconcile having a bad credit score and buying a home.

However, bad credit is not permanent; you can overcome it. There are many programs available to help. For example, a Canadian family living in the US may be eligible for USDA financing. You may also qualify for assistance through a state program or HUD. If you reside within Canada, it’s best to look for lenders that work with those living in rural areas.

Financing a Mobile Home With Poor or Fair Credit

Purchasing a mobile home in Canada can be challenging even under the best circumstances. Families with dented credit have to go the extra mile to prove their financial ability to pay. They can't afford to make late payments, and their payment plan must be flexible. There are steps one should take to prepare for this big plunge.

First, it is important to remember that while you may be able to get financing with bad credit, it's not a road you should take if you don't have a solid plan to pay back the debt. Poor credit leads to higher interest rates. Before you borrow money, you need to think carefully about the consequences. Also, you want to avoid taking a dip into your emergency fund just to buy a mobile home.

Here are a few steps you should take before purchasing a mobile home.

• Pull out your credit report and take a good look at it. Look for any discrepancies, charges, or actions that you 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 hold.
• Work with a credit specialist to try and clean up some of your credit concerns. There may be some items on your report that can be legally removed to 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 to what you really want in a few years. Remember, it takes patience and hard work to beat bad credit.

Another important tip is not to get suckered. Some will prey on vulnerable families looking to buy a mobile home. Keep your bearings, think, and plan clearly before signing anything. You can also take on a side hustle to help you settle your debts quickly.

The only way to get the mobile home you long for is to work painstakingly with an expert on your credit report to make the most of your situation.