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Company Loan Type APR Est. Pmt.

Manufactured home with land as collateral

Posted on: 30th Aug, 2006 07:53 am
My mom and I inherited a house worth $67,000 and 20 acres. My husband and I have less than perfect credit and we learned we can use our land as collateral to ppurchase a mobile/manufactured home. The problem is my mom took a loan aout against the house several years ago that is not paid off. Is it possible to use the land as collateral?

This kind of collateral is basically used to secure the loan that the lender is going to provide.

Also the lender will also want his claim to the collateral property to be the first, i.e., there be no previous liens existing on that property, which in your case does exist.

Posted on: 30th Aug, 2006 12:32 pm

It might also depend upon the number of years left on the loan that your mom took.

If the loan is nearly ending the total term and the lender is satisfied that your mom is in a financial position wherefrom she would easily pay off the remaining dues of that loan, then the lender may agree to it.
Posted on: 30th Aug, 2006 03:36 pm
Hi Katie,

I agree with Devroe, the lender will always like to be the main lien controller of the property, as it ensures that he gets his prime share of any foreclosure proceeds(if it goes to that stage) before any other lending company can stake claim to part of the money.

Posted on: 30th Aug, 2006 05:02 pm
hi katie,

you cannot use the entire land as the collateral as you already have a lien against it. but you can use the equity in your property as the collateral.

the equity = (appraised home value) - (the remaining debt against the land)

that means you will be taking a second mortgage against the same land or property.


Posted on: 30th Aug, 2006 08:31 pm

It's true that you can use the land as collateral but you should have been making the payments in time. Otherwise, it's not possible to build up equity in your home. So, lenders will not be willing to offer you loan. Moreover, they will perceive you as a credit risk borrower who does not have a good payment history.

Second mortgage lenders may not be willing to provide the loan as they will not be able to retrieve the money if you default. If you fail to pay this lender, he has to wait till the first lender gets back his money. So, there remains a chance where the second lender may not get back his entire sum of money and hence suffer from financial losses.


Posted on: 30th Aug, 2006 08:39 pm
my husband and i are wanting to get a new mobile home. My aunt and uncle just bought a house with 9.5 acres and want to give us 3 acres for collateral on our home but they have a lean on it. what do we do to use the land for collateral on our new home?
Posted on: 28th Nov, 2007 01:26 pm
Hello Ronica,

I have already replied to your query here

Have a look at it.
Posted on: 29th Nov, 2007 05:07 am
can we use land as down payment on a constuctional loan??
Posted on: 16th Sep, 2008 04:59 pm
Welcome Tecia.

Yes, you can use land as the down payment on a construction loan. If you have been on the title to the land for quite some time, the lender will conduct an appraisal on the land. The difference between the land appraised value and the cost of construction will be considered as the down payment.

Posted on: 17th Sep, 2008 01:37 am
I have some land that is paid for and want to buy a modular home in nc can i do this I recieve unemployment benefits for income
Posted on: 22nd Jul, 2009 02:51 pm
If you sell the land and use the money to purchase the home out right that is a no brainer. But if you are looking for some type of financing to be involved I highly doubt a lender would consider a loan with no established method for long term repayment. One of the first questions when applying for a loan is where do you work and how long have you been employed there? There would be a very good chance with today's economy that you may not be back to work by the time your UC benefits run out and then how would you careful.
Posted on: 17th Aug, 2009 12:03 am
can i refinance my mobile home with unemployment benefits.
Posted on: 01st Dec, 2009 09:21 am

It's not possible to qualify for a refinance with unemployment benefits. You must show your lender that you have been employed for at least 2 years before your lender approves the loan. Without any fixed source of income, it's going to impossible for you to qualify for a refinance loan.
Posted on: 02nd Dec, 2009 05:45 am
With bad credit can i buy a mobile home and use my five acres of land to get the mobile home
Posted on: 27th Sep, 2010 07:59 pm
Posted on: 28th Sep, 2010 12:26 am
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