Generally, if you have bad credit, you either need to give a lender increased security or pay more for the loan. For mobile home loans with bad credit, one way to increase the loan's security is by making the home itself more secure.

If a mobile home is not permanently set on a poured foundation, it's considered personal property. But if the home is permanently attached, it's considered real property. This distinction is important when getting a loan because of the difference in value that's perceived.

Personal property is seen has an asset which loses value, while real property is viewed as an appreciating asset. This gives real property more value and security for a lender. And this increased security lets the lender require a lower interest rate and possibly a smaller down payment. So even though a permanent foundation costs more initially, it will pay for itself over time.

When your mobile home is designated as real property, it makes the property eligible for a FHA Title I insured mortgage. This program insures up to 90% of the loan for a lender and covers both the home and the land it sits on. This insurance enables lenders to make more loans to all types of credit records.

Another way to increase a lender's security is by meeting the loan standards of Freddie Mac. Freddie Mac is a government monitored company that buys mortgages as collateral for securities to sell to institutions. And standardized mortgages are more desirable to lenders. They know if they don't want their money tied up for the life of the loan, they can easily sell it.

The basic Freddie Mac standards require the home to be classified as real property. It must be permanently attached to the site and the land can either be owned or leased. But if the land is leased, the lease must extend for at least 5 years beyond the length of the mortgage.

When buying a mobile home, it's best to get the financing first. Dealers often offer low down payments but higher than average interest rates. But if you use a loan broker or make your own comparisons, you might get more home for lower monthly payments than you'd make for a loan from the dealer.