Mobile Home Equity - Loan Options?

Question

Does anyone know someone that will do loans on paid for mobile homes in Texas? I’ve got two in New Braunfels Texas that are paid for, they bring in $1,640/month after tax and insurance. I would like to pull out some equity but can’t find any banks that will do cash out/finance on mobile homes. I hate to sell them because they are such great rentals but there is a lot of equity sitting there.

Account Closed · Answer

@Ryan Hehman

Thanks Ryan, I own the dirt under them as well. I talked to 21st Mortgage yesterday. Here is their response:

“We are able to fiance loans for mobile homes in Texas. However, we cannot do a refinance for equity. This means that we are not able to give you money from the loan”

Kevin Romines · Answer

Oops,  I stand corrected. 3 years ago when I was with Guild Mortgage I did a Freddie Mac loan on a Non-Owner Occupied Mfg. but I just double checked the guidelines on it and they have killed that loan type. I called a buddy of mine that specializes in Mfg. and he confirmed, there is nothing out there that will do the loan on a residential bases.

I would suggest calling the local banks to see about doing a commercial loan on them? Sorry about the wrong info. up above.

Kevin Romines · Answer

Considering they are Titled to the land, the only Non-Owner Occupied loan that you can get is a Freddie Mac loan up to 65% LTV with a max. loan term of 20 years. Most lenders don't do them, even though its available through Freddie Mac.

Ryan Hehman · Answer

Are they tied to the land they're on or in a mobile home park? Try 21st Mortgage, they are the biggest lender on manufactured homes in the country, I believe. May not be possible if there's ground rent.