Flipper/Rehabber · Huntington Beach, CA · Member since 2017 · 42 posts · 13 votes
Hi All,
I have a deal for a manufactured home. Priced right, plenty of meat on the bone but here's the hitch. I just got word from my RE Agent that that it wont qualify for FHA or Conventional loans after I have repaired it and put it back on the market, because the home has been moved more than once. (Twice as far as I can tell). The property is solid but apparently there is a rule regarding loans on these things if they've been moved a couple of times? Only Cash buyers or VA will qualify. This severely limits my resale possibilities by reducing the market.
Question:
1) Can anyone verify this info? Property is in Washington State.
2) Does anyone know of any modifications I can do to the property to change its status to a permanent structure so its no longer considered a manufactured home (I can level it and start over but that isn't a profitable option)
This could be a walk away deal if I have a limited pool of buyers. What do you think.
There are certain credit unions and community banks that offer conventional financing on them even though a manufactured home may have moved more than once. I would encourage you to call the local lending institutions and see what they offer. Don't lose hope!
@BJ Ralphs Its a mixed bag.. I do agree with @Reid Levy There are exceptions and lenders where you can find loans. It will still diminish your pool of buyers at least some bit.
I would contact a few mortgage brokers / L.O.'s at credit unions or local banks. If they offer a product that will work; get buisness cards or flyers from them to display at the property.
If you can't find any lender who will do the loan, and you dont want to Finance it, walk away or make an outrageous low ball offer.
Good luck, I think you can still make this work.. or you will have learned some new i formation and have made some good contacts for the future.
Thanks for your input. Heres how it went. I ran some "test ads" on Craigslist for VA only Custom Home designed how YOU want it. Must come with VA Loan. - Zero response - Figured the buyer pool way to small. Walked away from the deal. I think someone else snagged it. It would make a great long term rental for the right investor. Just wasn't me at this time.