Manufactured Home Equity
I'm looking for a little beginner advice. I've tried searching some, but haven't found much in this area. My wife and I are trying to cash out some of our home's equity for investment purposes. We both have 780+ credit scores and based on an old appraisal from a couple of years ago look to be at about 50% LTV in our current mortgage (although we are contemplating paying for our own appraisal to see if the value has increased further). The issue we have ran in to is we live in a de-titled, permanently affixed manufactured home on a few acres. I've tried working with a mortgage broker, but the best he could do since it was a manufactured home was a cash out refinance for 60% LTV and almost double my current interest rate. So not a lot of cash out for a lot more money long term. The interest rate didn't surprise me, but the low LTV did. My questions are:
1. Are there any banks/institutions that are more friendly to manufactured homes than 60% LTV?
2. Is a cash out refinance the best product in this situation? I was thinking a home equity loan might be better, but again I'm still looking for a lender.
I appreciate any help here.
Quote from @JD Pierson:
I'm looking for a little beginner advice. I've tried searching some, but haven't found much in this area. My wife and I are trying to cash out some of our home's equity for investment purposes. We both have 780+ credit scores and based on an old appraisal from a couple of years ago look to be at about 50% LTV in our current mortgage (although we are contemplating paying for our own appraisal to see if the value has increased further). The issue we have ran in to is we live in a de-titled, permanently affixed manufactured home on a few acres. I've tried working with a mortgage broker, but the best he could do since it was a manufactured home was a cash out refinance for 60% LTV and almost double my current interest rate. So not a lot of cash out for a lot more money long term. The interest rate didn't surprise me, but the low LTV did. My questions are:
1. Are there any banks/institutions that are more friendly to manufactured homes than 60% LTV?
2. Is a cash out refinance the best product in this situation? I was thinking a home equity loan might be better, but again I'm still looking for a lender.
I appreciate any help here.
Hey JD,
Before I answer your question I will preface it by saying manufactured homes will always come with lots of "it depends" type of answers. Like is the manufactured home pre-1976? Moved twice before put on permeant foundation? Single wide? What is the acreage being used for (farm land?) How many acres? Depending on these answers will dictate what options you have. Most mortgage professionals don't know all the options available for manufactured homes, so just because someone tells you 60% LTV is the highest they can go on a cash out refi that doesn't mean that is actually your only option. I used to own a farm with a manufactured home on it so know a lot of the ins and outs of where to go for financing these. If you want me to help point you in the right direction let me know- I just sent you a PM.
1. Generally local Credit Unions will have some portfolio options that are more friendly to manufactured homes. There are some national lenders that have options for manufactured but usually the Credit Unions have better rates/fees so that's where I recommend starting.
2. This is going to depend on several factors so can't give a clear answer without more information. What is your current interest rate? How much are you looking to cash out and where will it be invested (expected return vs difference in interest rate)? Home equity products are even more limited for manufactured homes (doesn't mean it's not possible but there will be high rates/fees), so it's hard to say what is best
#2 Mobile Home Park Investing Contributor
- San Antonio, TX
Quote from @JD Pierson:
I'm looking for a little beginner advice. I've tried searching some, but haven't found much in this area. My wife and I are trying to cash out some of our home's equity for investment purposes. We both have 780+ credit scores and based on an old appraisal from a couple of years ago look to be at about 50% LTV in our current mortgage (although we are contemplating paying for our own appraisal to see if the value has increased further). The issue we have ran in to is we live in a de-titled, permanently affixed manufactured home on a few acres. I've tried working with a mortgage broker, but the best he could do since it was a manufactured home was a cash out refinance for 60% LTV and almost double my current interest rate. So not a lot of cash out for a lot more money long term. The interest rate didn't surprise me, but the low LTV did. My questions are:
1. Are there any banks/institutions that are more friendly to manufactured homes than 60% LTV?
2. Is a cash out refinance the best product in this situation? I was thinking a home equity loan might be better, but again I'm still looking for a lender.
I appreciate any help here.
You may want to try small, local banks and credit unions. If you have a good relationship with an existing one, you may be able to get a good rate. Outside of that, it's really hard to get financing on manufactured homes with a decent rate. You might want to talk to some local mobile home dealerships as well to see if they know someone who can help. In the past, I've found them to be good sources of information for market insight and referrals. Hope that helps!
