Financing

[blppep]

We are in the process of almost signing a contract to purchase a Hallmark home and one of the companies thorugh this site had contacted me. I was "preapproved" and told financing would be 20 year 8% with a 20% down payment with financing on about $112,000. We told them from the beginning that the home would not be secured by the property but would be a second home on land we own. Now a few days later, I have requested additional information and was told the loan would be 11.24% for 20%. Has anyone else had these kind of dealings with lenders. I feel real deceived and now have to start over. We live in Central California.

Also, at what point is a loan secured when purchasing? Once we open escrow with the deposit it would be approximately December 15th before delivery. If you get a loan too soon, do they lock in the rates until finalization?

We are going to add siding, wood floors and a deck upon delivery. Will a lender include these costs in our loan?

Thanks for your help.

[admin]

It appears that you were approved under a program that was designed for home and land. Loans secured only by the manufactured home always carry a higher interest rate. This is because there is a higher risk for the lender of extraordinary costs in the case of a repossession. If the home has to be removed from the land the lender is looking at an immediate cost of five thousand dollars or more to relocate the home.

Please shop other lenders and I'm sure you may find that their rates on "home alone" loans are some what comparable. If you have an excellent credit history and a low debt to income ratio you might just find a beter rate.

You can submit the form at www.ManufacturedHousingFinance.com and in the comments section of the form let potential lenders know that your already approved but looking for a better rate. You might just find that by letting them compete for your loan you could shave that interest rate down.

Best of luck

[Andrea Mayfield]

I just received financing on a manufactured home in central California from Community West Bank. They specialize in manufactured/mobile home financing. Our home is in a land lease park. Our interest rate is 8.75% on a 10 yr. loan ($70,000.) You might want to contact them to see what they could do in your situation.

Good luck.

[loanlady]

I am a broker looking for financing for my clients in Northern California for a purchase of a 1978 MH with a perm foundation. I have a bank statement as full doc type of loan. Anyone know who is doing these? LTV 85-90...

[krixtina]

Equity One -Popular Inc 800-461-8643. they are in New Jersey. they own E-Loans, so I heard. they do full doc and stated (which is really soft doc) for manufactured and modulars. they take their time on these kinds of loans. I feel like manufactured home owners are treated like criminals ready to commit crimes at any time when trying to get a loan! it is discrimination !!! anyway, good luck

[cohiba]

Chase will do self employed, stated income,good credit....new, on perm foundation