Lenders for Pre ‘76 Manufactured Home?

7 Replies

Have a client interested in a 1974 manufactured home. Single wide home, is placed on a block foundation, and sits on a quarter acre deeded with the home (not in a mobile home park). Owner rehabbed it very nicely, hard to tell it’s even a mobile but once a mobile always a mobile and I’m not having any luck finding a lender willing to finance due to it being built pre ‘76. Local banks aren’t willing, even with upwards to 30% down and the owner isn’t interested in financing it to my client either. I know local banks are generally the best bet for these scenarios but the home being manufactured in 74 is scaring off everyone. Anyone know of a national lender that might be willing to finance?
Originally posted by @Brian Faust :
Have a client interested in a 1974 manufactured home. Single wide home, is placed on a block foundation, and sits on a quarter acre deeded with the home (not in a mobile home park).

Owner rehabbed it very nicely, hard to tell it’s even a mobile but once a mobile always a mobile and I’m not having any luck finding a lender willing to finance due to it being built pre ‘76.

Local banks aren’t willing, even with upwards to 30% down and the owner isn’t interested in financing it to my client either.

I know local banks are generally the best bet for these scenarios but the home being manufactured in 74 is scaring off everyone. Anyone know of a national lender that might be willing to finance?

 Buy it cash, get it cashflowing for a year or two, apply for a cashout refinance with a commercial bank.

The seller is probably delusional about the actual cash value (cash value = the "no loan, except hard money" value) of their "not an RV" RV, and needs to come down in price significantly. 

Go get 'em, tiger. If your client can put 30% down on the current sticker price of this trailer, ie the price that isn't going to happen, that means the seller needs to realize that this thing isn't a house or real estate, and needs a 70% price reduction. Now your client can pay cash.

Perhaps the seller secures a note and deed of trust on top of the cash price. Shoot for 60% of the current incorrect sticker price. So if the seller wants $100k, your client can pay $30k cash and the seller can hold a note secured by that asset for another $30k.

Good luck, beat them up. :)

@Brian Faust One option is to look for someone that will lend on the land without the value of the mobile. 

Another option is to look for a local note investor that is willing to buy the note at closing ( aka a near simultaneous closing).  That way the seller is just "temporarily" providing seller financing.  The investor will likely want the seller/buyer to use an RMLO to be sure it complies with Dodd Frank and applicable regs just to be safe.  They will also want a discount but with 30% down the ITV should be pretty good provided the buyer's credit is decent.   As @Chris Mason said, the seller is going to need to get realistic about the value and their options.

@Brian Faust Here are the only two lenders that I have heard can do these types of loans. Call them up. Good luck!!!

@Kevin Romines - Will they do investment loans on manufactured homes with land?

You can do a cash or a rate and term loan with Fannie and Freddie at a max. of 65% LTV on a 20 year term. I would start there, beyond that, I am not sure? The Mfg. investment property is a tough one?

@Reid L. get in touch with Becky Shinevar at First National Bank from the info @Kevin Romines provided (thank you very much, Kevin by the way!!)......the options relayed to me for a pre-'76 mobile were surprising.  I believe she handles most the mobile/manufactured dealings.  I can't speak for options on investment as opposed to primary residence/refi but she'd have the answer(s).

Oops, as a clarification, the Fannie and Freddie has to be post 76, sorry about that? The original post is regarding pre-76. On the pre-76 follow the 2 lenders I showed up above. 

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