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Company Loan Type APR Est. Pmt.

mobile home refinancing

Posted on: 16th Aug, 2006 01:02 pm
Dear ipock9,

Since you are looking for a cash-out refi on a mobile home here are the current requirements.

  • You will need to have strong credit (all applicants)
    The current value of the MH and land should be greater than the amount you wish to borrow. The lower this ratio the better.
  • The home needs to be owner occupied.
    All applicants need to be able to verify their income.

These are pretty general guidelines for MH loans we are seeing across the country that are actually closing (the only part that really means anything to you).

This is primarily due to the current default rate on mobile homes being extremely high and the fact that many lenders who used to handle this type of property having gone out of business.

From the facts you stated it sounds like neither of you are really in a position to do this in the short term. You might want to spend a little time cleaning up your credit issues and re-establishing some good pay history. As for your husband building a credit record with at least 3 accounts and 2 years of history can go a long way towards him establishing a quality credit score.

Yes, your husband can apply for a VA loan, but remember he only has the right to apply. He still has to meet their current credit requirements. I am not a VA Loan expert so I will defer here to someone else who is more knowledgable on their current MH guidelines.

Since he is in the Army, there are usually quite a few companies willing to extend him credit (things like department store credit cards, auto loans, etc.) Just make sure that the types of accounts you establish are from companies who report to the credit bureaus. DO NOT use places like Buy Here, Pay Here car lots to build credit as they rarely report the credit (unless you don't pay). Larger, national companies will almost always report.

That brings me to the other part of this. First, make sure that you always make your payments on time for any accounts you setup. Next, don't over borrow. Many people make the mistake of taking out too much credit and then they can't qualify for a home loan. Too much credit is relative to your income so you should seek the advice of someone competent in financial matters to help you. Have your husband ask at work. There should be someone in his chain of command that can at least direct him to some (likely free) resources on base.

One thing to remember whenever you are talking to a lender or broker about borrowing is to always make sure they fully understand that this is a Mobile Home. I would make them double check that this is still a valid property type for their loan programs. We hear all too often after the fact a loan died in underwriting as soon as someone looked at the appriasal and realized that the property in question was manufactured. That is when they call us to get it done for them.

This may not be exactly what you wanted to hear right now, but hopefully it helps you understand the real issues and obstacles in your loan and shows you how to eventually get the property refinanced.

For more no nonsense info on mobile home loans you are welcome to see our site. If we can't help you, we will try to steer you in the right direction.

Thanks,
Dear ipock9,

Since you are looking for a cash-out refi on a mobile home here are the current requirements.

    You will need to have strong credit (all applicants)
    The current value of the MH and land should be greater than the amount you wish to borrow. The lower this ratio the better.
    The home needs to be owner occupied.
    All applicants need to be able to verify their income.

These are pretty general guidelines for MH loans we are seeing across the country that are actually closing (the only part that really means anything to you).

This is primarily due to the current default rate on mobile homes being extremely high and the fact that many lenders who used to handle this type of property having gone out of business.

From the facts you stated it sounds like neither of you are really in a position to do this in the short term. You might want to spend a littte time cleaning up your credit issues and re-establishing some good pay history. As for your husband building a credit record with at least 3 accounts and 2 years of history can go a long way towards him establishing a quality credit score.

Yes, your husband can apply for a VA loan, but remember he only has the right to apply. He still has to meet their current credit requirements. I am not a VA Loan expert so I will defer here to someone else who is more knowledgable on their current MH guidelines.

Since he is in the Army, there are usually quite a few companies willing to extend him credit (things like department store credit cards, auto loans, etc.) Just make sure that the types of accounts you establish are from companies who report to the credit bureaus. DO NOT use places like Buy Here, Pay Here car lots to build credit as they rarely report the credit (unless you don't pay). Larger, national companies will almost always report.

That brings me to the other part of this. First, make sure that you always make your payments on time for any accounts you setup. Next, don't over borrow. Many people make the mistake of taking out too much credit and then they can't qualify for a home loan. Too much credit is relative to your income so you should seek the advice of someone competent in financial matters to help you. Have your husband ask at work. There should be someone in his chain of command that can at least direct him to some (likely free) resources on base.

One thing to remember whenever you are talking to a lender or broker about borrowing is to always make sure they fully understand that this is a Mobile Home. I would make them double check that this is still a valid property type for their loan programs. We hear all too often after the fact a loan died in underwriting as soon as someone looked at the appriasal and realized that the property in question was manufactured. That is when they call us to get it done for them.

This may not be exactly what you wanted to hear right now, but hopefully it helps you understand the real issues and obstacles in your loan and shows you how to eventually get the property refinanced.

For more no nonsense info on mobile home loans you are welcome to see our site. If we can't help you, we will try to steer you in the right direction.

Thanks,
Posted on: 10th Nov, 2009 10:13 am
wow, very detailed reply bestrates, a lot of info to digest there!
Posted on: 10th Nov, 2009 01:17 pm
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