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How in the heck am I going to finance that?

One of the very first loans I ever closed was on a Manufactured Home. I'll never forget that customer. He was a former applicant from somebody who had left our firm and I was calling to follow-up with him. Thus began a 30 minute tirade on his part that left my ears ringing louder than the phones around me. He used more explicatives than a George Carlin rant. What was his major gripe? It was simple. NOBODY would help him refinance his property. His rate was in the double digits, yet his credit, equity position, job & housing history....along with his assets were impeccable. I could see his point. After 30 minutes, he calmed and asked if I could help. I said, "I'll sure try." I washed my ears out with soap and went to work. That was some 7 years ago and it was a wrestling match at the time, yet we got it done. Thus, the journey began...

I began doing some research into Manufactured Housing. Seemed that years back, lenders had a horrible time with defaulting loans on that type of property. States like Florida & Texas had a bunch of issues and between the defaults and the depreciation that the Property Type sometimes entails, lenders ran fast and far away from wanting to finance Manufactured Homes of any kind.

Manufactured Housing offers an affordable way for people to buy a home. And after seeing some of these homes, they are absolutely spacious & extremely nice. The price range I'm accustom to seeing and financing rests between $50,000 & $250.000. The last one I closed was late last month the borrower got a fixed rate of 6.875%....not too shabby for a property type that is deemed so very hard to finance.

Yet, there was and is a need. So, Manufactured Housing is alive and well and living at First Choice Equity Group Inc! It is just one of the many things we can do. Below are some of the guidelines and parameters...

Single Wides, Double Wides,

Triple Wides

*Purchases 100% LTV

*Cash Out Refinances To 90% LTV (640 Score)

*Minimum Credit Score 620

*Second Homes

*Rural Properties

*Mobile Homes In Parks

* Pre 1976 Models Allowed

So, don't be shy. If you own or are looking to buy a home and see a Manufactured Home that tickles your fancy, feel free to get a hold of me.

Posted by Jason Sardi, Mortgage Banker on 03/12/2008 03:48 PM

Comments (28)

manufactured homes, mobile home financing, doublewides, pennsylvania mortgages

Originally posted at: Real Estate Financing...: How in the heck am I going to finance that?

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28 Comments on How in the heck am I going to finance that?

MAR

2008

Jason, these can be extremely challenging to finance. One question...can you do these nationwide?

No Lola, I cannot....as of yet. Only in Pennsylvania. If you have a few preferred lenders out there though, feel free to give them my email address and I can at least point them in the right direction.

I AM shy, and I don't think I'll ever consider buying one. Can I still call you?? ;-)

Hopefully this will point those in PA to the right guy!!

Jason,

Yes it's true Manufactured Home owners are people, too!

Soap in the ear is not necessarly a good thing! Next time go to the sink, tilt your heqd so that the ear that had been closest to the offender is down and gently use the spray on the other ear, letting the water drip through. When finshed gently dab the ears dry with that soft paper from your living room.

I was going to echo the second coment: "If you have a few preferred lenders out there though, feel free to give them my email address and I can at least point them in the right direction." Then I saw it was your's, o'well.

Bill

Jennifer - Call me anytime my dear.

Bill - Thanks for the advice, I'll keep that in mind the next time we speak as well:-)

It works, I used it after our last call.

Bill :-)

Jason... I've never lived in a trailer but know people in Maine that do and I never understood the stigma the goes with a mobile home. True there are plenty of trashy parks but a well kept home on it's own lot or in a decent park it a great alternative to renting.

Jason, I love manufactured homes, HECK I sold them for 12 years. Financing is easy as long as the land is included for me and rate well rate is only 1/4 more conventional and no hit on FHA

Jason,

You never stop amazing me... I thought these loans were a thing of the past... that you for the info...

Sardi...

I have always wondered if when you wash your ears out with soap and then sneeze...Do you get bubbles? :)

Ha! Ha! Made you smile. Again :)

TLW...ROAR!

Jason - you forgot the best part of that 1st loan. It was an incredibly nice singlewide............................ with a fireplace?? Now I wouldn't recommend having a fireplace in your single wide. But this client had enormous pride of ownership and a surprisingly nice place too! Nice write!

Jason..Nice to know you do these types of loans. It is extremely difficult to find Brokers who will handle Manufactured Housing. I have only found two and they are both from out of state and the rates were not as low as you quoted.

Jason,

I'm not sure but I believe they were a popular item here until we had a few whopping hurricanes and then I think the banks didn't want the liability to insure then.....IE no loan approval. The structures were a liability due to the fact that some were damaged badly from major wind. I imagine they are risky.

I have never sold a manufactured home? However, I did go Delaware a few years ago with a friend and she was looking into buying one near Bethany and I was amazed at how modern and big these homes were? Good for you Jason for looking out for the folks!

Jason, I read the beginning of your post and I am transported back in time to the beginning of my mortgage career. What a nightmare.

by the way, did you get the 10 solicitation emails that I sent to you and will you be joining all 10 today?

Jason: Finding a lender here in North Florida for Mfg homes is tough....tougher every year. I wish I had a go-to-guy here for that. We can do FHA for them here but with strict requirements. They are tough - especially if they are on large parcels of land. If the land is worth more than the mfg home...it's darn near impossible.

I know what you mean. We could find NOBODY to finance mobile homes. I have finally found a friend who is a mobile home dealer and he knows a lady in Texas who knows her stuff and she can get them financed. Now I just don't have anybody to sell one to!

MAR

2008

Jason, When I first started as well I used to get some phone calls about Manufactured homes and you are right in Florida the Lenders might say they will do it but try and close one. I have found these are a real niche product. (not my niche)

40% of housing in NC is manufactured - great reminder.

Bill - You look spectacular in a robe;-)

Dan - I've seen a lot of these homes that were much nicer than your run of the mill stick-built homes.

Joe - Yup, but when they aren't on their own land...they can be difficult, but do get done.

Rick - Thanks man. Nope, they are alive and well.

TLW - Only twice, while I won't go into the semantics of the body's fundamental reaction...I will tell you I stray away from potty mouth's:-)

Scott - That one was memorable, was it not?

Sandra - If only I were licensed in your area....

Neal - That's the shame of it man, I remember reading that the hurricanes & the nature of the structure had a lot to do with it.

Audrey - You aren't alone, many are surprised at the wonderful condition these homes are in. Thank you!

Danny- Actually, I got 11 and of course I'm joining. I'll return the favor as I've created 15 new groups that will point to you my next 48.5 posts that will be featured on the dashboard of the Wall-street Journal if I get enough people on my side. Please forward my email to the entire state of California:-)

Christine - You are probably right there. It may not be a bad idea to contact some Mortgage Professionals from Active-Rain to see if they can help your clients out.

Barbara - Oh, the freaking irony....

Matthew - Let me know if you need an outlet, I may be able to help. Even though it's not a niche of yours, could be of benefit to those that you come across.

Eleanor - Wow, interesting statistic. We have a pretty healthy market for manufactured housing in Pa as well.

MAR

2008

Jason... nice reminder to so many out there..... I am doing a doublewide in PA as we speak, a 95% cash-out FHA..... a very easy to understand post...

Jason,

Can you finance this beautiful Condo community???

Thanks, Fran

Jeff - There are still several avenues to go with Manufactored Financing, that's for sure. Hey, why didn't you refer that to me:-)?

Fran - Refer that one to Belonger above you:-)

MAR

2008

Out here in California we have some manufactured homes that may even fool an appraiser they look so much like a regular single family residence. I don't do the pre-1976 thing...but I have a team mate who does. See ya, Jason.

I know what you mean Joey, sometimes it's so hard to tell. Talk to you soon man.

MAR

2008

Jason - Now, this is an interesting issue. With so many people loosing their homes, how many of them will resort to Wheel Estate?

I believe manufacted homes increase in sales when the economy goes down.

Are these the fruits from this mess?

Wheel Estate!?! Nice one Douglas:-) We may see an increase in sales and I'm not sure if these are the fruits from the mess, but they are certainly a nice option for some out there.

APR

2008

Oh Jason I could have used your help way back when... had a person (friend of a friend) who insisted on a manufactured home and the loan process was so painful.

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