Mortgages and Loan Programs, for Mobile Homes in a park
Our Lowest Loan Amount for Mobile Home Programs, is $50,000.00, including cash out loans.
Homes older than 15 years, are limited to cash out mortgages of 65% to 80% of the appraised or book value of the home, whichever is the lesser.
If the home is newer than 15 years, the borrower may borrow as much as 80% of appraised or book value, whichever is the lesser.
The term “Cash Out” loan means just that. The total value of your home, at this time, establishes the potential equity you have in your home. Then, that number is multiplied by the maximum amount of the loan you can obtain. This may be as much as 80% of the total value of your home.
Borrowers need to have good credit, with at least a 680 – 700 as the middle credit score.
Mobiles up to 15 years old can borrow 80% of their value. The Cash Out limit is $25,000.
Mobiles older than 15 years can borrower 65% of their value. Cash Out limited to $25,000. Homes must be built later than July, 1976.
Homes must be owned for 12 months or more, prior to submitting the cash out loan refinancing application, and you will need to show proof of your down payment or cash purchase.
Many items are considered, but mostly your credit history determines the loan to value calculation.
Let’s say your home was worth $100,000,
and you could borrow 70% of the value of your home, which would be $70,000.
And, let’s say you owed $40,000 on your home. Then the amount of cash you could receive at the close of the transaction, would be $30,000, less the closing costs. There could be a $25,000 cash limitation, as explained before.
At the moment this program is only available to mobile home borrowers. In the past we could offer this program to manufactured home owners, who owned the land under their house. We hope this program will return in the future. Please check with us.
Also, please visit the following pages for more details about mobile home loan programs.
Because some of the underwriting policies differ from one funding lender to another, it is always best to let me take a loan application, from you, over the phone, so I know all the details of your goals and loan scenarios.
The older the home, the more underwriting criteria tighten. Your age matters as well. Although, in theory, if something happened to the borrower, the family would step in and sell the home or live in it themselves.
Of course, that doesn’t always happen, and the lender does not want to foreclose to be paid back.
Contrary to what most people think, lenders do not want foreclosures. There is so much time delay. In California, following the foreclosure rules means a borrower could easily live in the home, without making payments, for 6 months or more.
In some “bad time,” like the Covin 19 pandemic, lenders could not foreclose, until the government said it was O.K.. Thinking from a Lender’s point of view, this could mean giant losses in mortgage payments.
The loans have to be carefully underwritten, to protect the funds of the mortgage lender, so the company can go on, making loans to others that need to finance homes.
Therefore, many facts are considered, prior to you receiving loan approval, to purchase or refinance a specific home.