Calera • Denison • Sherman

Are you looking at financing options for your new mobile home?

If the answer is ‘yes’, you’re not alone. Over 95% of new mobile home buyers in Texas and Oklahoma financed their home last year. And with rates as low as they are now, that number will likely go up. There are lots of financing options to choose from, and we want to make sure you have all the help you need when you’re reviewing your mobile home financing options.

Your home will be the largest purchase you make in your lifetime, and it’s important that you understand the terminology your lender uses.


Amortization is the payment of a debt in equal installments of principal and interest. Click here for an amortization calculator.


Appreciation is the increase in value or price of a property over time. In this case, your mobile home and your property.

Chattel Loan

This is a type of loan for a home only, and not the land. This is very common in mobile home transactions.

Credit score

A credit score is a number between 300 and 850 that measures your debts and likelihood of repaying them on time. Lenders use credit score to determine the interest rate and the down payment amount.

Debt-to-income ratio

This ratio is the comparison of a borrower’s monthly debt payments to the borrower’s monthly gross income, and it ultimately helps to determine the final loan amount. It determines how much stress a loan payment will put on your monthly finances.

Discount points

Discount points represent the fee associated with the note rate for your loan. One point equals one percent of the loan amount. For example, one point on a $100,000 loan would equal $1,000.

Down payment

A down payment is the portion of the purchase price that a buyer pays in cash at the beginning of the loan. Lenders typically need anywhere from 5% to 20% down, or higher in some cases.

Loan-to-value ratio

Loan-to-value (LTV) is a ratio that divides the home loan value into the property value. For example, if your home is worth $100,000 and you owe $60,000, then your loan-to-value ratio is 100,000 divided by 60,000, or 60 percent.

Mortgage insurance

Mortgage insurance is written by a private mortgage insurance company to protect the mortgage lender against loss due to default or foreclosure.

Origination fee

This is the fee the your lender charges to generate your mobile home loan. In most cases, you will pay it at closing, but there are instances in which this fee is in the amount financed.


PITI is an acronym for the principal, interest, taxes, and insurance that make up your monthly payment for your mobile home.

Principal Balance

The principal balance is the sum of money outstanding on your loan.


Underwriting is the analysis of risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. It involves evaluating the property value and features, and analyzing the borrower’s ability to repay the loan.

Click here to start the purchase process for your new mobile home!