Cash out loan for mobile homes

[Katia E Carmona]

Hello everyone!

I have a property with a free and clear title. It's a triplex. The main house is a duplex, one 3/2 and one 1/1 units. The third unit is a 2/1 on the second floor of the detached garage. It's valued at about 220k. I want to get a cash-out loan,l for 80% LTV, the only problem is the main house is a mobile home so the lender I've always worked with says they can't do the cash out loan because of this.

My question is, is there a way to change the classification from mobile home to a single family home? What are the requirements or where can I find this info in my county?

Or other option is to call different lenders and see if they’ll do a loan on MH? Has anyone done this or is it a long shot?

TIA!

[David M.]

@Katia E Carmona

I think you are pretty stuck... You would need to talk to your local municipality's Construction Dept probably to find the requirements.  Basically as I understand it, a house is something built "onto or attached (via teh foundation)" to the ground.  A mobile home is a vehicle.  In fact, the closings are done at the local DMV since its the transfer of TItle of a vehicle.

I hope you realize that the issue is conforming residential loans are for residential homes.  So, don't talk to residential lenders.  It sounds like you have more than just your regular mobile home.  Have you looked into a commercial lender (i.e. non-residential lender)?  Sure, the rates and terms aren't as good, but it could be one way to get a loan.

Good luck.