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FHA Title 1 loan help please!

Posted on: 08th Jul, 2009 05:57 pm
Hi everyone!

I am looking for a Title 1 lender for a new or used mobile home in California. Home only on leased (employer supplied) land.

I downloaded the "approved" Title 1 lender list for California from the HUD website (260 lenders listed). I have called about 20 so far. They ALL say that NOBODY does Title 1 loans. Some mention extra hassles, not very profitable, nobody to buy the loan etc.

I called the FHA 1-800-callfha. I asked for the names of some lenders who have actually submitted a Title 1 loan to them over the last few months. They say they don't keep that info! Does anybody know anyone who is actually making these loans?
Hi Marc,

The market situation has gone through a lot of changes in recent times. Many lenders have changed their lending strategies and their business. This is the reason why many of the lenders you have contacted so far have stopped making this type of title 1 loans. But there are 260 lenders in all and you have contacted only about 20 of them. You need to get i touch with other lenders as well. It might not be easy. But in this economy you need to do extensive search to find a loan program of your choice.

You may also have difficulty in getting a title 1 loan as the home is on a leased land. I think if you go for a personal property loan to finance the home, things will be much easier for you. You can contact any local lender and go for a conventional type of loan. You may also seek a no-obligation free mortgage consultation with the community lenders. They will check your credit scores, income, LTV etc and will suggest you the right type of mortgage that will serve your purpose.
Posted on: 09th Jul, 2009 12:10 am
Jenkin7,

Thank you for your reply.

I will keep at it. I have found some lenders who say they will do a home only on leased land, but I was really hoping to compare total costs and interest rates with a fha garanteed title 1 loan.

Even with good credit and a spotless payment history with my credit union, they want to charge about 12% for a personal signiture loan. They will give me 7.5% on a 10-15 year loan on a motor home, boat or airplane, but no Mobile homes! Other banks may offer less, but probably not near the 7 1/2% or so I was hoping on getting.

FHA reciently raised the max loan amounts for home only title 1 to $70,000 and several "industry news" type reports I have read expressed the (wishfull?) opinion that the increased limits would help increase supply of, and demand for, manufactured home loans.

I wonder if they know that the program basically has no affect on person's ability to get a manufactured home loan with resonable rates and terms. The fha underwriting dept must know if anyone is doing these loans but I have not been able to get a hold of them yet. The Supervisor I spoke with at the FHA help center sent me info on submitting a freedom of information act request for that info...for a fee I believe?!?

The FHA must really make the process complicated or not very profitable, if nobody (or very few) lenders are willing to use the program to give a very low risk loan to someone with good credit.

Marc
Posted on: 09th Jul, 2009 02:37 pm
Posted on: 14th Jul, 2009 02:21 am
yes , domestic bank out of new york is doing title one/ i talked to them n apparently fha is requiring a first mortgage already in place for a title one to be appproved on said property. domestic bank will do title ones if you have existing first mortgage in place , they were not set up to do if the property is free n clear. they offewred to loan me 18000 on a double wide guerdon home 1975 that has to be brought up to code , they tie the loan to the land
Posted on: 13th Jan, 2011 05:11 pm
to marc, here is an idea , go to the owner and explain to him what u want to do. then go to a lender who dooes title one, try domestic bank out of new york and get a letter of committment from tem that they will do the title on if you ave your name on title etc etc. take the letter of commitment to the owner of the land and show him that once he quick calims the property to you for 45 days the bank will the loan you tue title one money. u can put in a weasel calause for the owner that say in thte event that u do not perform accorrdingly with whaterver arrangement u work out with owner then the property willl revert back to him. you need your name on title long enough to get the title one. then act as general contractor and put 6 or 7 thousand in mobile home n pay yourself the difference of 11,000 doolars if it was a 18,000 doolar loan. theser ar nice littlle loans tha t r easy to get so make sure u service the loan until u sell or whatever you want to do. I am getting ready to do one of these on a double wide . i found 6 acres the owner will carry finance n a manufactured home is allowed. plus there are two building permits on . after i inform owner what i am try in g to do i will then have him quic claim the title to me. n tie the loan to the land . out of 18000 i should be able to bring the 1975 guerdon home up to code for 3 - 4 thousnad n pay 2000 moving cost n give owner maybe 5000 down out of the 18000 which would leave me 7000 as a cushion to service loan etc. now i will have a 6 acreas with a affordable home thatr i can leasde out or sale . everyone wins. these loans r for fixing up thoose homes that need fixed up n will then bring the value up in the neighbor hood . then it is on to another title one project. i hope this helps

[Email address deleted as per forum rules. Thanks.]
Posted on: 13th Jan, 2011 05:30 pm
domestic bank out of new york or new jersey doe title ones they have been doing them for a long time. title on has had a small chang e made to it . in the past you could get a title on without havin a first mortge in place such as frree n clear property. now the guidlinenes call for a first mortgage to be in place before the can be issued.
Posted on: 13th Jan, 2011 05:37 pm
yes , domestic bank out of new york is doing title one/ i talked to them n apparently fha is requiring a first mortgage already in place for a title one to be appproved on said property. domestic bank will do title ones if you have existing first mortgage in place , they were not set up to do if the property is free n clear. they offewred to loan me 18000 on a double wide guerdon home 1975 that has to be brought up to code , they tie the loan to the land
Posted on: 13th Jan, 2011 05:38 pm
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