Need Hard Money for owner occupied property

I will be gifted 3.5 acres, in NW Georgia $21,000 is the apprasied TAX value of the 3.5 acres. (so an actual appraisal of the property could be more)

I want to put a doublewide on it as my own residence. I need 50,000 which will include the cost of a reposessed doublewide, moving it to the property, any closing costs, having utilities installed and having the grading on the property done.

What I do have going for me is the fact that I have been at my job for almost 5 years, and have been in the same line of work for over 20 years.

I currently am buying a stick built home with a mortgage in AL,on 3.25 acres, but can no longer afford those payments (800.00 per month), and will be doing a lease-purchase plan with a potential buyer, to make those payments (or in the alternative if you have an investor who wants to buy it, it has a 96K balance and will probably appraise for around 120K.)

The reason I cannot afford these payments is because my wife lost her job 3 years ago, has had one surgery per year for the past 3 years in a row, and my hours have been cut at work to 32 hours for the past 6 weeks. It is the second time that they have had to do that, due to the economy. We tried to get a loan modification but were told we make too much money??? I had to bankrupt in May of 2010, so it will be 2 years old in May 2012. My gross monthly income is 3360 per month at 40 hours, and 2688 per month at 32 hours. The only other debt I have is a car payment of 250.00 per month.

hard money loans are short term loans, normally for 6 months or so, not for long term. Also the hard money lenders I know don’t like to deal in your personal residence, it is much harder for them to foreclose compared to an investment property (because you would have it homesteaded)

Why not sell your current house and use that cash to go toward purchase/moving of your new home

Generally, hard money loans are for residential or commercial property short term financing. As andydallas noted.

Usually they are only offered for conforming property types. A manufactured (mobile) home does not qualify as a conforming property type.

Manufactured homes have a title just like a vehicle. While the property has a title, it will not qualify for a conventional mortgage. The only way that conventional financing can be achieved on this property is to permanently affix the manufactured home to the property and have the property title corrected to reflect this. To qualify, the manufactured home must be permanently affixed to a brick foundation. Axles, wheels and tongue must be removed.

Once this is accomplished it will qualify for conforming options.

well, I guess I used the wrong term when saying “hard money”, I meant just bad credit finanancing for the new place.

I have tried to sell the house, this market is terrible as you know.

So any advice on where to go for bad credit financing of a personal residence using the land as a down payment?

Heres a thought; If you can get out of that AL deal, call your local Ga Clayton Homes,(CMH)and tell them you’ve got you some land and want to do a land / home deal on a repo doublewide. THey have a special fin deal where they’ll front everything like septic,well,power if needed and wrap it all in one loan against the land. THe key is there can be only ONE closing. Check it out, could be something there for you.

I think you’re heading in the wrong direction.

$800 is a very reasonable house payment.
You need to tighten up your budget and make the Al property work.

Sell the Ga land for whatever you can get for it so you’re not paying taxes on a piece of property you don’t need.

Sell the car and get something you can afford.

50k is too much to pay for a trailer. With taxes, insurance and note you will be paying more than the $800 per month you’re running from.

Hello acabin42,

3.5 acres sounds like about the right size for any self respecting trailer park. Why not…

  • find a partner that can put about 8 trailers on your land
  • allow your new partner to collect rent from his 8 trailers
  • yourself collect about $2k per month for use of the land

As a realtor, I would definitely advise you do it the right way with an attorney involved. But it sounds like to me you are about to be gifted a nice 3.5 acres of land that you can use to start building personal wealth.

All the best,

Hard money lending and Owner Occupied Properties are two phrases which very seldom collide together in the same sentence.