Loan for a property that is a "purged" mobile home

3 Replies

I have an opportunity to purchase a property that is a mobile home that has had the title removed (it has a permanent foundation) and for tax purposes is part of the real estate. I was previously told (I don't remember where) that, from a lender's perspective, once a mobile home always a mobile home. So all you lending geeks out there, what is the correct answer?

I would purchase with cash but would want to resell so want to know what the limits would be for the new buyers.

Thank you. 

@Bill S. I will give you my take on that and your area lenders might be different than mine too.  About 2-3 years ago I owned a 1984 Double Wide manufactured home and it was on land.  I had put a permanent foundation under it as well.  When it came time to sell it, the lender had to have it inspected.  Another thing that was required was replacement cost insurance, not actual cost.  That was the tougher part as well because not that many places would give you that coverage.  My home was also attached to 8x20 mud room and attached to a 26x32 garage.  I also had a 20x32 addition added on the other end.  So it was a little different that just a home itself.  But you never know it might be worth checking out to see what bank will lend now.  Things in that market tend to change a lot.  Good Luck. 

Originally posted by @Bill S. :

@Mark Gruetzmacher thanks for the info. This MH does have an addition attached to it as well. Sounds like you would say it's a case by case basis, which means it's a wild card.

 Yeah I would take it that way.  If it is a newer home there might be better chances as well.  But I think the first hurdle would be the insurance.  If in a total loss the lender will want the insurance to cover 100% of the loan value.  Kind of a tough area for financing.

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