I am looking at buying used mobile homes in Texas.
Anyone have any tips or resources for financing these?
Thanks!!
Mobiles are tough to finance…and tough to sell for the same reasons. I own one . It is an older one and the only way for me to buy it was with 20% down. Of course the price reflected the difficulty to get financing and it has made a profitable rental. Perhaps terms are easier to get in TX.
If you can find an seller looking to take back financing (land contract) or assume a mortgage you could get in cheap. Or perhaps buy two or more togeather. Good luck.
you could also use lines of credit, like credit cards and unsecured lines at your bank
Like everyone else has said, financing a mobile/manufactured home is going to be tough.
Investors, banks, mortgage companies, government agencies & the secondary market are no longer interested nor do they want many manufactureds in their portfolios any longer since most are poorly maintained, depreciate in value (only the land will appreciate), some are poorly constructed and most of all … the types of people who pruchase them have an extremely high rate of defaulting on their loans.
100% financing (except for VA) is no longer available, even from specialty lenders … typically you will need 20% down unless you have less than perfect credit in which case expect to be required to put 30% to 50% down!
Most lenders who offer conventional financing on manufactureds will not allow secondary financing including seller carry backs. If you try hard money or private money lenders, they will allow secondary or carry backs but the total loan usually can not exceed 90% of the appraised value.
If the unit is more than 10 years old … figure that it will be even hard to finance.
Also lender, title, escrow, appraisal fees & homeowner’s insurance are usually higher for manufactureds than stick built homes of the same price … so purchasing a manufactured is not going to be your best bet if you are tying to save money.
Plus if you need to do a stated income/asset program rather than a full doc program (paystubs, tax returns & bank statements) you can forget it … I tried to find one for a client several months back and no one offers them any longer.
My advice to you … avoid manufactureds altogether unless you have cash to put down, plan to tear it down to construct a stick built home or can qualify for VA financing … no matter what state you live in.