Lenders for Pre ‘76 Manufactured Home?

[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?

[Chris Mason]

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. :)