Posted on: 28th Jun, 2009 02:04 pm
I am needing more information for a friend on getting a loan on purchasing a single-wide trailer. My friend has the land but she needs to get started on setting it up for a trailer. Her credit isn't the greatest but she would like to make a fresh start.
Hi Jones,
As your friend owns the land, she can obtain a mobile home mortgage loan to make the purchase. However, there are a lot of other factors that the lender considers before approving a loan. What are your friend's credit scores? Does she have other debts? What is her debt to income ratio? Has she owned a principal residence in the past 3 years? In case she has not, she may also qualify for $8k first time buyer tax credit.
As your friend owns the land, she can obtain a mobile home mortgage loan to make the purchase. However, there are a lot of other factors that the lender considers before approving a loan. What are your friend's credit scores? Does she have other debts? What is her debt to income ratio? Has she owned a principal residence in the past 3 years? In case she has not, she may also qualify for $8k first time buyer tax credit.
you are eligible if the conditions given below are fulfilled.
foundation requirements:
mobiles homes built prior to 1976 hardly qualify for mortgage because lenders are concerned over the life expectancy and quick depreciation of such a home compared to that of traditional site-built houses.
the manufactured home must follow the building standards proposed by hud under the federal national manufactured housing construction and safety standards act of 1974.
the hud code requirements are as follows:
the houses must be built as one, two or three section homes in a protected building center and then transported on a frame to be installed on the site. the wheels and axles must be removed and the mobile home should be fixed to the ground to give it a permanent foundation. as per hcd rules, you need to record form 433(a) which implies that the home is changed from personal to real property due to it's permanent foundation.
the homes should comply with the hud code restrictions for construction, design, durability and strength, fire resistance, energy efficiency, transportability and quality.
the property should maintain high standards for heating, plumbing, air conditioning, thermal and thermal systems.
the property must pass through strict inspections conducted by third party.
ownership rights:
the borrower must have absolute ownership (free of liens) rights except if the loan is required for a lot which consists of a share in a co-operative association owning and operating the mobile home park.
purpose of the loan:
the loan must be taken in order to purchase or refinance only a manufactured home with the lot/land being owned by the borrower, the home and the lot on which it is situated, only the lot on which the mobile home (already owned by the borrower) will be installed.
the home must be the principal residence of the borrower.
for a lot loan, the mobile home must be placed on the lot and must be the principal residence within 6 months after the date of the loan.
if the loan is meant for a home in a mobile home park, then the lease on the home should extend for at least 5 years beyond the loan term.
credit score:
borrowers must have a minimum credit score of 620 in order to get an affordable rate of interest. however, you may get manufactured home loans in spite of having poor score but you'll be charged higher interest rates. so, you can try for loans that are not score driven but even such loans require you to have a moderate credit score of 550 and above.
down payment:
lenders expect you to put down 5-10% of the purchase price for newly built homes for a loan term of 15 to 30 years depending upon your credit profile, size of the home and type of loan. for a pre-owned home, the down payment is the same but loans are available for 20 years depending upon the factors stated above.
foundation requirements:
mobiles homes built prior to 1976 hardly qualify for mortgage because lenders are concerned over the life expectancy and quick depreciation of such a home compared to that of traditional site-built houses.
the manufactured home must follow the building standards proposed by hud under the federal national manufactured housing construction and safety standards act of 1974.
the hud code requirements are as follows:
the houses must be built as one, two or three section homes in a protected building center and then transported on a frame to be installed on the site. the wheels and axles must be removed and the mobile home should be fixed to the ground to give it a permanent foundation. as per hcd rules, you need to record form 433(a) which implies that the home is changed from personal to real property due to it's permanent foundation.
the homes should comply with the hud code restrictions for construction, design, durability and strength, fire resistance, energy efficiency, transportability and quality.
the property should maintain high standards for heating, plumbing, air conditioning, thermal and thermal systems.
the property must pass through strict inspections conducted by third party.
ownership rights:
the borrower must have absolute ownership (free of liens) rights except if the loan is required for a lot which consists of a share in a co-operative association owning and operating the mobile home park.
purpose of the loan:
the loan must be taken in order to purchase or refinance only a manufactured home with the lot/land being owned by the borrower, the home and the lot on which it is situated, only the lot on which the mobile home (already owned by the borrower) will be installed.
the home must be the principal residence of the borrower.
for a lot loan, the mobile home must be placed on the lot and must be the principal residence within 6 months after the date of the loan.
if the loan is meant for a home in a mobile home park, then the lease on the home should extend for at least 5 years beyond the loan term.
credit score:
borrowers must have a minimum credit score of 620 in order to get an affordable rate of interest. however, you may get manufactured home loans in spite of having poor score but you'll be charged higher interest rates. so, you can try for loans that are not score driven but even such loans require you to have a moderate credit score of 550 and above.
down payment:
lenders expect you to put down 5-10% of the purchase price for newly built homes for a loan term of 15 to 30 years depending upon your credit profile, size of the home and type of loan. for a pre-owned home, the down payment is the same but loans are available for 20 years depending upon the factors stated above.
I am trying to buy a single wide trailer from a privet owner in South carolina.
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/predeal/about37661.html#161348
Take a look at it. Hope it helps you.
http://www.mortgagefit.com/predeal/about37661.html#161348
Take a look at it. Hope it helps you.