Cont.

The reason for not offering creative financing methods is that the lender will not be able to get their money back after a long period of time if the borrower defaults on a lower interest, lower payment balloon mortgage. If the borrower desires to pay a bad credit mobile home loan off early, they may do so. There are typically no prepayment penalties, as the lender is eager for the balance to be paid as quickly as possible since this type of housing loses their value over time. Fortunately, most do not require an application fee. The lenders of bad credit mobile home loans are aware that the applicant may be strapped for cash, and make the loan process as simple as possible. They can become very complex if there are hidden surprises at the closing of the loan.