how do you use land as your collateral for a new mobile home

ronicafranks · Joined: 28 Nov 2007 Posts: 1 1.00 Dollars($)

my aunt and uncle just bought a home with 9.5 acres and they want to give us 3 acres for collateral on us a new mobile home but they have a lean on it. what process do we take to be able to use the land for our collateral for a new mobile home?

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Ronica,

If your aunt has bought the home as well as the land with a mortgage then I think both these are used as collateral for her mortgage. As it has already got a lien on it, I don't think she will be able to give a portion of the land to you for your mobile home. With a lien on the land it will be difficult for you to use it as your collateral.

Instead of that, you may go for a mobile home personal property loan, which you may get for mobile homes even on rented land. This loan generally requires a minimum of 10% down payment and is financed for 15 to 30 years. The interest rates are usually 2-3% higher than the mortgage for real property but it is easier to get an approval for this type of loan.

You may talk to the manufacturer of your mobile home for a personal property loan and find out if he is willing to help you.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Ronica,

Welcome to this forum.

I think Jenkin is right. The land has lien on it. So it will be better if you take mobile home personal property loan as suggested by Jenkin.

Thanks,
Larry

Guest 0.10 Dollars($)

Hello Ronica,

I went through a similiar situation. My parents owned 10 acres and gifted my wife and I, 9 acres. The acre they kept included their home. The remaining 9 acres has a pole barn. It was not a complicated process but time consuming. Here is what we had to do. First we contacted their mortgage company to see if it was possible. It was, and their mortgage company is Citifinancial. First we had to have our land rezoned to residential with a one lot sub-division. Then we had to get the property split approved by the area planning commission. A new survey was also required. From there an attorney had to submit a letter, and a partial mortgage release to the mortgage company. Once they processed and approved it. A notarized quit claim deed and the partial mortgage release were recorded at the local recorders office. The mortgage company will take into consideration the amount of the mortgage verse the value of the retained land. If the retained value isn't enought they may not approve it. We hired an attorney to handle the rezoning, property split, and the partial mortgage release. When it was all said and done the costs were about $4000.00 (includes survey, attorney fees, mortgage company fees, and recording fees).

Anyway it can be done under the right circumstances, and you could probably do alot if it yourself if you have the no how.

Thanks

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