Asheville, NC · Member since 2017 · 170 posts · 242 votes
First day on the market and my flip (20yr old doublewide) has an offer $10k over asking. Yeay!
The clincher - it’s an FHA loan.
Does anyone have experience with FHA and mobile homes? It’s on a permanent foundation. I don’t want to be saddled with repairs or have it possibly go back on the market, especially since it’s priced on the high end (most comps are original and not renovated ).
Should I hold out for a conventional loan? It’s not even been a day. The buyer wants an answer tomorrow.
Lender · Powell, OH · Member since 2016 · 97 posts · 64 votes
8y
Since it's permanently affixed to the ground, if they are working with the right lender it is possible they can get an FHA loan on the property. 99% of lenders including myself cannot do that loan and would be a bit annoyed by your buyer for wasting our time.
If the lender can do the loan FHA appraisals are a bit more picky, but you have a 10k cushion to fix any little items the appraiser may have issue with. If I were you I would call the bank listed on their prequalification letter and tell them you want to buy a mobile home with an FHA loan. If they don't hang up on you it's probably okay. If they tell you that they don't finance mobile homes I would throw the offer in the trash and move on to the next one.
First day on the market and my flip (20yr old doublewide) has an offer $10k over asking. Yeay!
The clincher - it's an FHA loan.
Does anyone have experience with FHA and mobile homes? It's on a permanent foundation. I don't want to be saddled with repairs or have it possibly go back on the market, especially since it's priced on the high end (most comps are original and not renovated ).
Should I hold out for a conventional loan? It’s not even been a day. The buyer wants an answer tomorrow.
I did FHA loans years ago so I don't know what age the cutoff is for doublewides at this point and it might vary by location anyway. However, FHA will lend on the LOWER of the asking price or the Appraisal so just be aware that if you are at the high end of the market and the Appraiser (who isn't going to stick his neck out for you - he will probably come in on the conservative side) comes in lower, you are faced with the decision of completing the sale or finding a new buyer. I'm not saying it will happen, just be aware that there is a strong probability. I would continue looking for backup buyers.