Manufactured Homes: The Hits GO ON!
The Mobile Home Mess VA Financing in Jacksonville FLorida
VA Loan Store concentrates on Va Financing in Jacksonville Florida. What Susan has stated in her article holds true to this day. VA Financing in Jacksonville Florida is alive and well, but not with mobile homes. I have spoke to several veterans wanting to purchase a mobile home and put it on their land, only to turn them down. After pursuing all my outlets lenders are just not lending on mobile homes with VA financing.
VA Financing in Jacksonville Florida in our opinion is the very best lending situation for most veterans, if not the only option. No down payment required, 100% cash out refinancing. With Conventional and FHA lending this is out of the question. Rates are very very good for VA Financing in Jacksonville Florida as well.
If you are a veteran or currently enrolled military your best bet is to get your VA pre-approval and then pursue the property of your choice. This is only for my benefit, because nothing is worst then saying "No I cannot get a loan for your mobile home". During the pre-approval process you will be educated on your buying opportunities. Telling a veteran I can not help them after hey have their hopes high on the purchase of a property is not what I like to do.
I hope this helps someone pursuing VA Financing in Jacksonville Florida and throughout the U.S. I also want to thank Susan for her added facts. Let's hope the lenders can agree with the VA and allow the same benefits for mobile home purchases.
This news is not going away fast. In the wake of FHA and VA lenders closing the window for funding Manufactured Home Loans (August 09) I am canvassing our network for solutions, conventional, portfolio, you name it. Here's the skinny:
The FEW lenders still funding Manufactured home purchases require:
1. Higher credit standards for both borrowers
2. Higher down payments than stick built homes
3. Higher interest rates and closing points
4. Newer age limitations on the home (which creeps up every year, 1994 is typical)
My August post on this: http://activerain.com/blogsview/1202931/manufactured-homes-take-a-hit-
What's the Big Deal? Manufactured homes represent significant risk to the investor because defaults in this housing sector are extremely high. My portfolio lenders won't fund anything older than 1994 . The list of no gos gets longer by the day.
What's a Seller to Do? While this is not my area or expertise, it appears the loss of good lending terms will seriously affect resale value of all manufactured housing. Higher insurance fees (and fewer insurers) are an ongoing factor.
MFD Specialist Lenders: A Manufactured Home Lender I spoke with today offers 12% interest rates on higher LTV's. They cherry pick the properties and rates depend on age of home, credit factors, etc. They are extremely busy picking up the pieces even at those interest rates (!) Since August, the government mortgage lenders who were selling their FHA Manufactured Home Loans to Taylor Bean now have no place to sell them...so the question lingers: who will buy and service them in these loans in this market? Portfolio specialists charging high enough interest rates to cover their behinds, that's who.
Foreclosures high in Manufactured Home category. I was told today that banks are so overloaded with defaults in this category they are reselling them for pennies on the dollar. Just look at any FHA or VA repossession site. 99% are Manufactured Homes.
MFD Industry Implications I understand Warren Buffet owns a Manufactured Home Company. Wonder if he's taking his lumps on that? A community dependent on a Manufactured Home plant, the suppliers to that plant, the distribution chain, and everyone who cuts hair or feeds the workers of that plant will be in for an unpleasant surprise unless they can quick retool and up-skill to the next level.
Enter Modular:The Modular Housing Industry (factory built in sections on timber sub-floors) will likely benefit from this news. Modular homes are classified 'stick built' construction and are more affordable than most conventional homes due to economies and efficiencies of scale and under-cover building. This category is worth watching!
Here's my blog on that: http://buildnet.blogspot.com/2007/12/gliding-toward-green.html
RECAP: Because Fannie and Freddie will only fund 80% loan to value on newer homes with perfect credit, this defeats the purpose of entry level housing since very few borrowers have 20% to put down. VA lenders are scarce as hen's teeth.
I know Realtors are reluctant to give this news to their clients for whom they may be listing or negotiating a Manufactured Home transaction. I've heard Realtors trying to steer borrowers to 'their lender' who 'just funded' a manufactured home a few weeks ago. Sure, that lender funded a home they had locked a loan 30-45 days ago. They can no longer originate that same loan unless they are willing to hold it. Most smaller banks are so distressed by local conditions that underwriters are being told to flatly deny a manufactured home purchase or refinance.
REQUEST: I am seeking a VA lender for a Manufactured Home Purchase for a well qualified borrower. I have 14 "no's" in my inbox today. My poor borrower even called the Veteran's Adminstration and was told it's not the VA. This confuses everyone. Lenders are simply not happy about funding manufactured homes. Their investors, you and me, their depositors are not happy about it. We need better answers for our buyers! (yes would be nice?)
IF YOU KNOW ANYONE FUNDING VA MFD HOME 100% PURCHASES TODAY PLEASE TELL THEM TO CALL ME NOW!!! ....and --hey hey hey...be careful out there!
An approved Conventional, FHA/VA/USDA, Reverse Mortgage and Commercial Mortgage Planner
© Copyright 2009 Loannetter
510-LO-31434 susan templeton licensed loan officer, washington and beyond
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