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kcschwandt · Joined: 17 Mar 2010 Posts: 1 1.39 Dollars($)

I recently have been discharged from bankruptcy. I want to see myself in a mobile home on a piece of land. I have $10,000 cash. Someone is willing to sell me a 1/2 acre of land for $10,000 undeveloped. All it needs is some dirt work for a mobile home and a sepic system installed. I already know I do not qualify for any conventional loans due to my bankruptcy and I would have to have at least 30% down for a purchase before ANYONE will talk to me about a loan. I have already been qualified through 21st mortgage to buy one of their repo homes with my $10,000 down but I would not have anywhere to put it.

My question is, could I purchase the land with my cash and use it as collateral to purchase a mobile home instead of a down payment? If so, who do I talk to?

Is a bank more likely to lend to me with $10,000 cash down or 1/2acre of land owned free and clear..?

jenkin7 · Posted: Thu Mar 18, 2010 1:20 am Post subject:

Hi kcschwandt,

It will be very difficult for you to get a loan against an undeveloped land in this market. Most lenders are no longer offering loans against raw lands. There has to be a home on the land for you to use it as collateral. Moreover, you will not be allowed to use the loan proceeds to put down on the mobile home loan. Lenders do not allow you to put down money from borrowed funds. It has to come either from your own pocket or from any of your friends or relatives in the form of gift. You may put down $10k to purchase the home and then try and get another $10k for the land from a friend or a relative. You can also try to get a personal loan. But given the recent bankruptcy discharge, I doubt if you will qualify for it.

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