Loans against Mobile Homes?

Nov 26, 2007

  1. Donald
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    Donald New Member

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    Hi,
    I am planning to buy a Mobile Home as my budget is small but I would like to own a home as I am fed up of paying rent month after month. Does any one know about companies which provide loans against Mobile Homes? If yes then what are the options and is there any other relevant information which I should need? Thanks in advance!
     
    Donald, Nov 26, 2007
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  2. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    not sure.....but you will get a call from the NAA people........
     
  3. somarco
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    somarco That Medicare Expert Guy

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    Greentree (a Conseco subsidiary) used to be a primary lender for mobile homes. I am not sure if they still exist and if so, if they are in that market.

    Several things are certain. Interest rates will be high (even if you have good credit) and a large down payment may be required. If you default on the loan expect to be in the hole since manufactured homes have very little resale value.

    HO insurance is also hard to find and expensive.

    You might want to rethink your choices. Buying a manufactured home may not be the best use of funds.
     
    somarco, Nov 26, 2007
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  4. Cenla Agent
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    Cenla Agent Guru

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    I think the troubled Countrywide is one of the major ones.

    I would just check with the dealers in your area since they often arrange the financing as well. There are two basic types of loans. Land/home, where you also put up your land, or chattel, where you are only financing the mobile home. As you would imagine, land/home has better terms.
     
  5. Cenla Agent
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    Cenla Agent Guru

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    I would just check with a dealer unless you are looking to buy one used from someone else. I'm assuming you have some land in mind where you will want to put it. You get better terms if you finance the land and the home, but there are lenders who will finance only the home, which is called a chattel loan.
     
  6. The New Guy
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    The New Guy Guru

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    I would find a mortgage company, and realtor to work with. You would be surprised to find out how easy it can be to purchase a house right now. If you can buy a mobile home, you should be able to buy a house. With a mobile home, you still will have rent. Also, you are buying a depreciating asset, and depending upon the age, and the park it is located in, you may, or may not be able to keep it in that park when you try to re-sell it, due to the age, and or condition, of the trailer. Assuming you have never purchased a home, the Government has several programs available with little, or no money down. Banks, for the most part, will not touch a loan for used trailers, as they are considered personal property, and not real property. Depending upon your credit, you will have to go to a used trailer lot, or purchase one from a park that owns several trailers due to repossessing them from previous tenants. If you do purchase a trailer from a park, make sure you get it in writing, that you can: 1. Keep the trailer in the park after purchase. 2. Be able to re-sell it and let it stay in the park for the new owners after you. The park will also want to pre-approve your buyer, before you sell.
     
  7. David C
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    David C Guru

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    Donald,

    You are correct in thinking that it's generally good to leave a rent paying situation for an equity building position. However, now may not be the best time for you to do so. You stated that you are financially limited right now, when you own something you are the one responsible when "things happen", right now your landlord is responsible. I promise you - things will happen.

    You would be trading a year to year lease for a long term obligation, and doing so for something, which, in most instances, will NEVER appreciate in value. I sold mobile homes for two years and I never saw one that appreciated in value.
     
    David C, Nov 26, 2007
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  8. djs
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    djs Super Moderator Moderator

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    Just ask your mobile home vendor. They will know the best solution in your area. The answer to these types of questions are always very state specific, and I believe also depend on whether it is in a park or on your own lot. Definitely not my area of expertise.

    Dan
     
    djs, Nov 26, 2007
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  9. gradyinsurance
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    gradyinsurance Super Genius

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    As a mobile home park owner, I can tell you that it is not a good investment to buy a mobile home, to use for a personal residence. However, your admirable goal to stop having to pay rent is to be applauded. I would recommend buying a small home, preferably on a decent sized lot. The housing market may have its ups and downs, but over the long term, houses do not depreciate. Also, if you can afford a better home later down the road, you will receive a higher rent for a house than a trailer.

    Dave
     
  10. TXINSURANCE
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    TXINSURANCE Guru

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    Mobile Home = Waste of Money.

    Save some more money, give yourself time and buy a real investment (a house). Mobile homes are generally a bad deal all around.
     
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