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Financing for manufactured home
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Posted by newhomeseeker (My Page) on Tue, Apr 8, 08 at 15:39
| One of the homes I looked at recently was a manufactured home (they call them double wides here apparently) on two acres. Had a two car garage and an above ground pool. It has been for sale for 8 months. The realtor told us that several people have been interested in the home but so far no one has been able to get finacing on it. She said this is because most banks will not give you a loan because it does not sit on a basement. It does not have the wheels and axles on it (sits on a block foundation but I guess this is not considered permanent?) Manufactured homes were big in this area for retired couples and first time home buyers because you could get a brand new "house" for much less than the cost of a stick built home.
The realtor showed us the apprasail the owners had done and the appraisal lists the property value as $120,000. This is much higher than what they are asking for this home. They have done four price reductions. My question is, if most banks won't even loan money on a property of this type, how did an appraiser (who I'm assuming works with banks) come up with such a high figure? The land is definately not worth that much.
For the record I am not interested in purchasing this home (I prefer a stick built house) but I'm just curious how the process would work? Does someone have to pay cash to buy this property or are there different loans available for this situation.
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Follow-Up Postings:
RE: Financing for manufactured home
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| Hi NHSeeker, Does someone have to pay cash to buy this property or are there different loans available for this situation. There's still financing for these, but the buyers need 20-30% down payment if it isn't new-off-the-dealer's-lot... THAT is what the problem is, I am sure. New installations can be financed to zero down. Cheers,
Dave Donhoff
Strategic Equity & Leverage Planner |
RE: Financing for manufactured home
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| Look at it from the bank's point of view: If there was a risk that some guy you lent money too could move and take the collerateral with him, would you be eager to lend? A bank would probably have no problem mortgaging the land, but the home would require something more like a personal loan: much higher interest rate, much shorter payoff period. The more mobile the home is, the worse the financing options will be. |
RE: Financing for manufactured home
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| Good response mfbenson .... also, like other things that can drive off, these properties do not necessarily appreciate the way a "stick built" house can. But, you should be able to find an FHA Lender that will finance the property. There are requirements for when they were built and how they are attached to the foundation, but they are doable. |
RE: Financing for manufactured home
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| This is the situation I am in now. We are selling our mobile home and 2.5 acres of land (and even worse, it's a single wide home). It's a nice set-up in a private community, wooded on three sides, huge deck and aboveground pool, carport, well, aerobic system, established landscaping (including my prized own-root rose garden!), goldfish pond, etc etc... Anyway, it's been shown to 5 different people. ALL FIVE wanted to buy it, but three couldn't get financing, one low-balled us and walked at 80% of our asking price, and this last group just toured yesterday and are talking with their lenders now to see if they can get a loan. It's such a hard predicament to be in. We have it priced right, it appeals to those who have seen it, but they have to have 20% or more to put down on it before the banks will even consider it. We're over 150 days on the market. |
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