Refinancing My Mobile Home

[Doug]

About 10 months ago I purchased a mobile home in So. Calif, mainly because it's all I could afford. But going from an 850 sq. ft. condo that I owned to a 1700 sq.ft. triple wide mobile home had a lot of appeal, even though it's on leased land.

I could only get an 8%, 30 year term. It's killing me. I have spent the last 4-5 months trying to get a balance only refi, running into one road block after another. If I've contacted one broker\lender, I've contacted 15. I've heard it all:

It's too old (1979);
it's a mobile home and can be moved (DAH!);
you live in a park;
you don't own the land;
It's not permanently secured to the ground;
It's titled like a vehicle;
it's not "real property";
rampant defaults nation wide;

All of this inspite of my gold credit rating. If I do get a bite they want to charge an outrageous interest rate! I even went to my current bank (Chase) who gave me the 8% loan and they wanted 9%. I'm a veteran and even the VA want consider a loan unless I own the land and the MH is permanently secured to the land.

If it's titled like a car why not apply an appropriate interest rate, especially at today's low rates. Back in 2001 I got a 5.9% rate on my new GMC Sierra, which was a fairly decent rate for the time and my mobile home has a heck of lot more equity in it than my truck. I would be hard pressed if an emergency came up and I needed an equity loan.

Apparently this was not a good idea (purchase). I often ask myself why my real estate agent (whom I have known for a long time), didn't disclose to me the differences in owning a MH verses a single family dwelling, offering me some decision making choices. If I had known 10 months ago what I know today, I would still be in my condo.

Anyone have any ideas on how to solve this problem?

Thanks, Doug

[rmurray]

You have what would be considered a great rate for a home only used home...Even Chase publishes a much higher rate for this type of product to its dealers..

It is hard to compare this to a car loan because of the term...The car you financed at 5.9% was for only 5 or 6 years at the longest..

Home only loans are funded by banks in a different manner than mortgages with real estate...real estate mortgages are funded by large investors who accept the rate on the loan for full term..thinking 5% is much better than long term t-bills or other investments..Most chattel loans are funded by short term investors and the bank could very well be hurting if rates go up in the future..

If you want to finance the home for 5 or 6 years like a car...you should easily be able to get a lower rate...even 10 years might be better...I have heard of folks paying off homes with high limit fixed rate credit cards at about 3.9%....but payments usually are 2.5% of the balance every month...making the payoff terms about...60 to 72 months...For the first year or 2 the payments are really high..

Unless you want to shorten your terms substancially...I think you have as good as it gets right now..

[Rita]

Your 8% sounds very good to me; mine is 11%. My credit rating is excellent, also. My monthly payment is low, though, so I have been doubling it. Is your lot rent high, or can you afford to add money to your monthly payment to decrease your principal? My lot rent is a chunk of money, but I love my lot, my park, and I feel very safe here, so it's worth it to me. Good luck.

[Christen]

I feel for you! Although I am not in the same position, I just got cold feet on a real estate transaction involving stunning property that has a 1972 'mobile' home sitting on it. I entered into a transaction to pay cash for a house to use as a retreat (I am also in the so Cal, in the greater Los Angeles area (the retreat home is in Kern county). I rescinded 1 day later, which was today! Getting the house for cash was no problem for me but after much consideration and advice from friends, it would be very difficult for me to resell a 1972 mobile home in the future. It would in turn have to be sold to a cash only buyer, as no bank will finance. Rumor has it that some banks may finance for 12%. Who in their right mind is going to invest in what would then be a 35-40 year old mobile home at 12%??? My other option would be to carry papers which I am not in the least bit interested in doing. I am not a lending institution. I am a middle aged mother and wife, just wanting to invest my inheritance in something that will ultimately make me or my children some money. I understand the position that banks have with regard to these type of homes, but even if I were to retrofit the home to its foundation, I would STILL NOT be able to sell it to other than a cash buyer, but also I could never borrow against it, even if I have 100% equity which I would! I am sorry I am losing out on one of the prettiest homes I have ever seen, with a lake, mountain, and tree view, but not at the expense of my nest egg, that my family members died for, in order for me to have! I think I rather look around for a vacant lot in the same area, and erect a new manufactured home! It might be cheaper, I am investigating!

[Roslyn Howard-Warren]

I am a mortgage broker looking for financing for approximately 30 people that have mobile homes. I live in a 1972 GoldenWest and had to pay cash for it because my husband and I couldn't get financing.

Try Argent or Accubank they supposedly walk on water with financing. I don't know if it needs to be affixed on your own land but I think they handle MH in communities (parks).

Good luck and let me know if this works for you so I can tell my clients.

Smile!
California Resident