Banking question

Ingardenguy57March 11, 2013

We live in Indiana, and have a 1993 double wide home on block foundation with full slab concrete floor under the home, so it is considered fix to the property.we have one acre with two large pole garages, concrete floors,wired,and insulated. Our property has been professionally fenced.New roof in 2011, new HVAC 2010. new flooring thru out etc.We do not have a mortgage of any kind for our property. We went to our local bank which we have been customers for many many years to secure a small loan to have new siding installed on our home.
Our credits scores range from mid 700s to the upper 700s.All was going well,up to the point I made a comment about our home being a double wide.

BAM ! The loan officer whom we have worked with for several years stopped dead in her tracks and told us NO WAY the bank would loan any amount to us due to the home being a double wide home end of story. Wife and I were in shock as this was the first time we have ever been refused a loan.I might add here, this is the same bank that gave us the original mortgage on our place to begin with.Anyone one ever run into this issue? Thanks

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cathyyg

I do not know exactly how it works in Indiana, but it is probably similar to how it works here in Michigan.

Once you place the home on a permanent foundation and remove the axles you can get a form called a certificate of affixture. You get that certficate AND you turn in the title to your home. Presto changeo, it is no longer a double wide manufactured home but "real" property like a stick-built house.

It may be you erred in referring to your home as a doublewide if you have the proper documentation of affixture for your state. It may be the bank simply doesn't want to lend any money to anybody, and you gave the loan officer a good excuse.

Or it may be that your original mortgage was based on the land value only, it is still a double wide manufactured home because the documentation has not been done to make it real property, and the loan officer was following standard policy not to loan money on an older manufactured home.

So, does your home still have a title like a car? Or do you have the document making it a house?

    Bookmark   March 11, 2013 at 2:32PM
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Ingardenguy57

Dont think we have the same laws here in Indiana. Ours has always been listed as a house. No title to ours.Also on our property taxes house and ground are listed as one.The loan officer told us they will not loan any funds on MH, Log Homes, Pole Barn Homes, and Underground Homes.It must be a conventional stick built home. Leads one to think they ( Bank) just as you said, dont want to lend any money.

    Bookmark   March 11, 2013 at 3:09PM
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cathyyg

I went online and found a reference for the various state laws. Indiana is just an affidavit and turning in the title, with the county recorder recording the affidavit in the property records.

So, yeah, it is just the bank refusing to loan money for any non-standard housing unit. Since your house is now considered to be a Real House you may be able to get them to reconsider.

Here is a link that might be useful: Personal to Real property conversion

    Bookmark   March 11, 2013 at 5:30PM
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beckyg56

We just took out a home improvement loan on our MH. We didn't have a bit of trouble. We went through our bank, they financed our original mortgage when we bought it. we went down, talked to them and got a verbal approval that day. It took a couple of weeks to finalize everything and have the loan proceeds, but no problems.

    Bookmark   March 11, 2013 at 11:09PM
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Ingardenguy57

Thanks Cathyyg and beckyg56 for your replies.And Thanks Cathy for the link. I am going to dig into this a bit more. If in fact our bank is unwilling to approve such a small loan with our situation, I think it's time to move on to another bank?????

I understand I guess that banks can do as they wish. But Gee this issue smells of being discriminatory in some form or fashion.

Thanks again for your input.

    Bookmark   March 12, 2013 at 10:00AM
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christopherh

Banks today are so afraid to lend money, period. So your bank is just being extremely cautious. Not loaning on a log home either? Time to search for another place. You don't need a bank either. Places like Quicken are every bit as good and the money is just as green, and you can get the same terms.

    Bookmark   March 15, 2013 at 7:47AM
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