http://cbelko.com/blog/categoryname_non-permanent-foundation/sort_entrydatetime-desc/ Recently I listed a home in Spring Creek’s Vista Grande (Tract 202), a 1989 single-wide manufactured home not on a foundation. Interested clients asked about financing, so I let them know that non-permanent manufactured homes sell by cash normally, or sometimes by seller financing if the owner is willing to do so, because financing was nearly impossible on this style home. Since the seller did not want to finance, I suggested to clients that, if they didn’t have the cash, maybe they should try to obtain a personal loan through a local credit union.             A couple of days passed and they called back and said they had been pre-approved to buy the home through a mortgage company.  Leery of course, I asked what mortgage company. They told me it was 21st Mortgage, so I asked them to forward me a copy of their pre-approval letter. Sure enough, it was a pre-approval to buy the home! I called the loan officer right away to ensure he knew this home was a single wide and not on a foundation. He was well aware!            Although the financing was available, these clients did have to sacrifice a few things to get the loan. A typical loan for a site-built home is for 30 years, with 3.5 to 5 percent down. The interest rate for this loan was between 8 and 9 percent and for 23 years. However, with the lower purchase price of the home, their payments were still going to be below $900, including taxes and insurance, and that is still cheaper to rent in our market for the property they were getting.  As a bonus, this home also had a shop with power, a fenced yard, and 2 storage sheds on an acre lot. They felt it was a deal for them in the long run.              Another “learning opportunity” during this process… the lender did have a hard time with an appraiser willing to pick up the appraisal without the property being on a foundation. The loan officer said in his 15 years being with the company, he has never encountered this issue, but he was able to resolve this by pushing it through underwriting approval by ordering and accepting the appraisal subject to the home being on a foundation.  Once this got pushed through to the appraisal management company, an appraiser picked it up. A quote for the cost of putting the home on a foundation was needed by the appraisal, even though the buyers weren’t looking for that upgrade, and the appraisal came in without any issues.                       The buyers are due to sign and close soon. I’ve had my license just over 6 years and have never successfully closed a transaction where a non-permanent home had been financed, so I thought I would share my story:  IT IS POSSIBLE.  But buyers do need to consider that there will be a higher interest rate and a shorter loan term. Better than rent, though!If you have any more questions about non-permanent financing or any other Real Estate need feel free to give me a call! Jaren Gilbert http://cbelko.com/blog/36/you-can’t-get-financing-on-a-non-permanent-manufactured-…or-can-you?/ Wed, 11 Apr 2018 12:00:00 -0800