My wife and I both enjoy excellent credit and we desire to purchase a doublewide manufactured home. However, there seems to be a problem with finding lenders for manufactured homes. One lender offered us 25 yrs at 11% with 10% down. Thats insane to me. Our credit scores ( high 700s) calls for a rate far lower even if it is a manufactured home.
Can someone out there with experience help us? We need some lending institutions that WILL finance a manufactured home so we can find the best rate possible.
What state are you living in? Please email me at myrnpr@yahoo.com or call me at 1-800-576-7776
We do lending for doublewides at Fannie Mae rates.
You are encountering a very common situation. Lenders are generally shying away from loans on double wides because of the high default rate on them coupled with extreme difficulty in getting them sold after a foreclosure for anywhere near what they cost. In other words, the lenders took a real beating in double wide financing.
Frankly, you were fortunate to find one which only wanted 10% down. Most are asking for 30-40% down in order to get even a halfway reasonable rate, around 8.5%.
I recommend that you do not buy a manufactured home. If you need to sell, you will painfully discover that you aren’t going to build any equity. These things go DOWN in value, rather than up, as a conventional home might.
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When we were newlyweds, we had a manufactured home and financed in through Chevron West Credit Union (www.chevronwestcu.org). I think they still do that, but you may have to be a member. If you have family ties through either Chevron or Texaco, you might be able to join.
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Most important question: Is is permanently affixed to your own land? If not, take the deal you’ve been offered. There’s just no competition for those types of loans, and the ones that do offer them, charge whatever they want.
If it is truly real estate though, you should be able to do 5% down, with rates in the high 6′s to low 7′s. There’s about a half-point higher rate for a manufactured home than a traditional home.
And there is zero possibility of 100% financing, regardless of credit. If that’s what you need, just quit looking until you have at least 5% saved up.
That all being said, try US Bank. They seem to have the best manufactured availability. Suntrust would work as well. Wells Fargo quit offering loans on them, at least to brokers, but maybe they still do it for their retail loan officers?
As a last resort, if you are in any type of rural area or have acreage, find the local farm lender for your area. Agstar, Agfirst are a couple, but they are regional only. Those guys will do large acre manufactured deals, but their rates are probably 1.5% higher than a typical conventional loan. Still better than 11% though.
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10 years in mortgage banking
this is going to be hard one for you. i’d start with looking at manufactured housing vendors and see if they can give you referrals. most lenders require the manufactured home be on permanent foundation. As for the rate vs. scores that’s to be expected for that particular market…high risk, low returns/resale due to deterioration of manufactured housing. not a good investment for a lender. i stay away from any manufactured housing because of the nightmares they give me regarding the whole process but i do know that once upon a time countrywide gave loans. but their underwriting lately is tiresome. try them. good luck.
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What state are you living in? Please email me at myrnpr@yahoo.com or call me at 1-800-576-7776
We do lending for doublewides at Fannie Mae rates.
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