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Advice on covering the costs

Posted on: 21st Jun, 2009 08:47 pm
Hi.

I'm interested in a loan to cover the cost of land purchase and sewer/electrical hookup costs.

I've just finished school and had a job, but lost it when the economy dipped because I was new. I've gotten a new job that pays very well in the city that I grew up in, but during the time between jobs I've been incredibly strapped for cash, and while prior to now, I've been very good about paying my debts - during this period I fell behind and my credit score dropped from 690 to 500. Also, I'm working as contract labor who has yet to file a tax return, so that comes into play vs. me having a pay stub to prove income.

Come the middle of this week I will have the debt paid off. I'm also currently living with my parents so I desperately want to move. I intend to pay cash for the mobile home which will be valued around $25,000. All I need is some form of loan around $10,000, probably less, to cover the moving costs, land purchase, permits and all the other things that go along with it.

I was thinking maybe a Personal Property Loan, but I'm not sure exactly how they work, and if I would have enough collateral in the home to get a respectable interest rate.

I don't know if this can be done, but my parents credit score is 780 and they would be willing to cosign the loan, and are in good standing with all the local banks.

Any advice on what my best options are would be greatly appreciated.
Hi Guest,

A personal property loan is primarily taken to purchase homes on a rented lot like in a mobile home park. It is a good option, but you will have to pay a higher interest rate on this type of loans as compared to mobile home motgage loans. The rate will be higher by about 2-3%.

Your credit score has dropped from 690 to 500 points, you have had late payments in the rcent past and you do not have a stable work history. These factors will work heavily against you, when the lender considers your loan for approvl. It will be difficult for you to qualify for the loan on your own. It will be better for you if your parents sign on the loan papers as co-signers. Since they have good credit and payment history, you will have a good chance of getting approved for the loan.

Thanks,

Jerry
Posted on: 22nd Jun, 2009 06:01 am
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