Financing question

[Amy]

I'm looking to buy a new manufactured home in about 6 months. The house will go on land that belong's to my mother. She will live in the house with me. My question is about the home only mortgage. Do all mortgages of this type have higher rates than the home/land ones? Is their any way of getting the lower interest rate that goes with the home/land mortgage? My credit score/risk is 763.

I've already learned so much from this forum. It's great!

Amy L.

[rmurray]

Congradulations on a great credit score...

Home only is always higher priced than mortgage rates...but remember there are no closing costs at all..offsetting some of the higher interest rates..Also there is no PMI insurance for those with less then 20% down as in land home..

Home only rates are risked based..The better the credit the lower the rate...You qualify for the most preferred programs in the market..

Also..risked based means that the more down (therefore less loss risk)..the lower the rate..It takes 20% down for the very lowest rates out there..A few lenders have their lowest rates at 15% down...If you try to buy with only 5% down you are likely to pay 2% higher rate than 15% down...This makes borrowing down payment worth while to reach the best thresh hold..

I think the best rates right now are about 8%...Nobody knows what they will be in 6 months..