Silly question about mobile homes

riverwed070707 · #1 (**permalink**) 10-24-2011, 08:37 AM

When purchasing a mobile home that is already situated on a parcel of land (land is included with the purchase, not leased), how is this financed? Is it something one takes out a mortgage for or does is not qualify?

artwest · #2 (**permalink**) 10-24-2011, 08:53 AM

Mobile homes are like cars, they depreciate in value. It is not a wise investment unless the mobile home is inexpensive. Buying land with a mobile home on it with the intention of building a house to replace the mobile home would not be a bad move.

To answer your question, I believe you can take out a mortgage the same as if you were buying a house.

riverwed070707 · #3 (**permalink**) 10-24-2011, 08:57 AM

Yes I understand the implications of buying a mobile home and that they depreciate. I just didn't know if the fact that they are moveable changes the way they are financed.

bjl584 · #4 (**permalink**) 10-24-2011, 08:59 AM

Quote:

Originally Posted by riverwed070707

When purchasing a mobile home that is already situated on a parcel of land (land is included with the purchase, not leased), how is this financed? Is it something one takes out a mortgage for or does is not qualify?

Mortgages are done differently than a traditional stick built home. A lot of lending institutions won't finance mobiles but the ones that do typically have higher interest rates and a lesser term than financing on a traditional home. Insurance rates also tend to be higher on mobile homes.

riverwed070707 · #5 (**permalink**) 10-24-2011, 09:25 AM

Part 2 of question - what other financing options would be available? If I were going to purchase it and then possibly try to sell the mobile home (but keep the land) what options should I be looking at? Would it have to be an unsecured loan? I don't have enough equity in my existing home so that's not an option.

Petunia 100 · #6 (**permalink**) 10-24-2011, 09:30 AM

I think you are going to have a hard time finding a lender who will give you a mortgage on a used mobile home. It doesn't hurt (or cost) to ask, though. Call a local lender and ask how you could finance such a purchase.

bjl584 · #7 (**permalink**) 10-24-2011, 09:32 AM

Quote:

Originally Posted by riverwed070707

Part 2 of question - what other financing options would be available? If I were going to purchase it and then possibly try to sell the mobile home (but keep the land) what options should I be looking at? Would it have to be an unsecured loan? I don't have enough equity in my existing home so that's not an option.

You may be able to just buy the land (and finance it as such) if you make it clear to the lender that you are not going to be living in the mobile home and that you will be having it removed from the property once you take ownership.

riverwed070707 · #8 (**permalink**) 10-24-2011, 09:36 AM

Quote:

Originally Posted by bjl584

You may be able to just buy the land (and finance it as such) if you make it clear to the lender that you are not going to be living in the mobile home and that you will be having it removed from the property once you take ownership.

So how is that typically done -- is there a separate loan option for land or is it just a personal loan?

bjl584 · #9 (**permalink**) 10-24-2011, 11:10 AM

Quote:

Originally Posted by riverwed070707

So how is that typically done -- is there a separate loan option for land or is it just a personal loan?

I'm not 100% sure how financing is done for vacant land, but it's most likely not a personal loan. A quick call to a realtor or a lender should clear things up though.

Angelynne · #10 (**permalink**) 10-24-2011, 11:25 AM

Quote:

Originally Posted by riverwed070707

When purchasing a mobile home that is already situated on a parcel of land (land is included with the purchase, not leased), how is this financed? Is it something one takes out a mortgage for or does is not qualify?

when u already purchased one, of course you can apply it for a mortgage.the property is already yours.

Petunia 100 · #11 (**permalink**) 10-24-2011, 03:56 PM

RiverWed, see this BankRate article. It may answer some of your questions:

Mortgages: Financing a manufactured home

Joan.of.the.Arch · #12 (**permalink**) 10-24-2011, 04:52 PM

I was looking at an unusual source of mortgage financing today and just happened to notice that they did finance mobile homes. I skimmed past the info, except that I did notice that they required that the unit not be below what the average buyer in the area would want (so I guess that means nothing of less than average mobile home value?). Oh, and it had to be at least 24 feet wide and have a steel undercarriage. That's all I recall.

riverwed070707 · #13 (**permalink**) 10-27-2011, 06:50 AM

I'm hitting a lot of dead ends with this. In short, the house is old (22 years) and I can't find a single bank that will finance a mobile home that is more than 15 years old. Not one. The home + land is still appraising at $30k and I don't have that kind of cash in the bank. The places I have found that will finance will only finance 50-65% of the value of the *land* alone. The land accounts for about half the value which means I'm still having ot come up with $20k. It's not that I'm not qualifying financially, it's that the home isn't qualifying. IDK what else to do. I need new ideas.

I have considered asking if they will owner finance, but I feel like that's a huge thing to ask of 7 other people who will be waiting on this to close. There is a possibility I could pay cash at the end of next year, but obviously not guaranteed.

What haven't I thought of? I'm going to be really crushed if I have to let this go

Joan.of.the.Arch · #14 (**permalink**) 10-27-2011, 08:06 AM

Could you buy the mobile home (cash--what is it worth?) and then finance the land? Could you get a bank loan for the land, but then finance the mobile home with the owners?

How about making an offer for the land, telling them you are not interested in the mobile home? Let them decide to move it off the land or offer it to you at a greatly reduced cost which you could pay out of pocket. If owning the mobile home is not a big piece of your dream, let it go. Or shall I say even--get rid of it. Just go for the land.

I imagine anyone interested in owning both the land and the mobile home is running into the same finance problems as you. So that would buy you some time. In fact, I think that if they turn down an offer from you, you might have opportunity to make a new offer once they see that no other better offers are coming along.

disneysteve · #15 (**permalink**) 10-27-2011, 11:35 AM

Quote:

Originally Posted by riverwed070707

the house is old (22 years)

The home + land is still appraising at $30k

The land accounts for about half the value

I find it very difficult to believe that a 22-year-old mobile home is worth $15,000. I'd work on negotiating that price down to something much lower.

riverwed070707 · #16 (**permalink**) 10-27-2011, 01:46 PM

Quote:

Originally Posted by disneysteve

I find it very difficult to believe that a 22-year-old mobile home is worth $15,000. I'd work on negotiating that price down to something much lower.

There are other structures on the property as well - a 2.5 car garage, an attached enclosed porch, etc. Obviously we will get an appraisal in advance but I don't think its far off.

disneysteve · #17 (**permalink**) 10-27-2011, 02:49 PM

Quote:

Originally Posted by riverwed070707

There are other structures on the property as well - a 2.5 car garage, an attached enclosed porch, etc. Obviously we will get an appraisal in advance but I don't think its far off.

That makes more sense. There must be some reasonable way to finance that purchase. Do own your home now?

DebbieL · #18 (**permalink**) 10-27-2011, 04:51 PM

Where I live 20, 30, 40 year old mobile homes in trailer parks (so you have to pay several hundred dollars per month in pad rental and own no land) are often over $100,000. Crazy. You would have a very hard time finding one for $15,000. The cheapest one I see on mls right now is $30,000 and they can go up to over $200,000. Most are at least 20 years old. I just noticed one on mls that's 1/2 hour drive out of town on leased land (you have to rent the spot it's on and don't own it) that they are selling for $275,000. It is a 1981 unit by the way, lol. This is why I rent. Crazy housing bubble here. But, even before things went nuts our house prices were higher than most.

lucky321 · #19 (**permalink**) 10-28-2011, 05:30 AM

We refinanced our mobile home and do not own the land. Contact Mainland Financial 888.264.4921. They are great and will help you.

riverwed070707 · #20 (**permalink**) 10-28-2011, 06:27 AM

Quote:

Originally Posted by disneysteve

That makes more sense. There must be some reasonable way to finance that purchase. Do own your home now?

Yes. Two of them actually. Strangely, this has not been an issue with any of the lenders

I expected hurdles, but I thought it would be with the fact that I already have two mortgages and don't plan to sell either house (well one, but not til next year when our contract period with the buyers expires). Turns out they don't care about that, they just don't like the house I'm buying. Some have even told me that if it were worth more they would consider it...

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