What is a Mobile Home Dealer Bond?
A mobile home dealer bond is a form of license bond required for individuals and companies that work as dealers of manufactured homes. A mobile home dealer bond protects the state licensing authority and the general public when interacting with a mobile home dealer.
If a dealer does not abide by state rules and regulations, a claim can be made against the mobile home dealer bond to cover financial damages.
Who are the Parties Involved in a Mobile Home Dealer Bond?
As with other surety and license bonds, a mobile home dealer bond is a contract between three parties. The obligee is the state licensing agency that requires the bond to be in place. The principal is the mobile home dealer that purchases the bond. The surety is the company that provides the bond to the principal. When a claim is made against a mobile home dealer bond, the surety pays for the losses and then requires repayment from the mobile home dealer.
Who Needs to Obtain a Mobile Home Dealer Bond?
Many states require dealers of both used and new mobile homes to obtain a mobile home dealer bond during the licensing process. It’s important to check your state’s requirements to determine whether you must obtain a bond for your business. Some states also have different requirements for mobile home manufacturers, installers, contractors, brokers, and retailers.
How Do I Get a Mobile Home Dealer Bond?
If you’re going through the licensing process for becoming a mobile home dealer, you also need to start your mobile home dealer bond application. The process is easy and begins with a request for a bond quote via a short online form.
What Does a Mobile Home Dealer Bond Cost?
Mobile home dealer bond requirements vary between states and so does the total bond amount. Mobile home dealers do not have to pay the entire amount of the bond requested. Mobile home dealer bond pricing often ranges from 1 to 3% of the total bond amount.
Can I Get a Mobile Home Dealer Bond with Bad Credit?
The percentage rate you pay for a mobile home dealer bond depends on your credit history, business finances, and your experience in the industry. If you have bad credit, you can still obtain a mobile home dealer bond. However, the bond premium percentage rate will be higher than for dealers with strong credit and business financials.