With mortgage rates on homes as low as 5.5%, and cars lower than that, I have asked lenders why the mortgage rates on mobile homes are at 9.5 to 12%. The answer they give is that it is “more likely for mobile home owners to default on the loan than other home owners.”
Are loan officers allowed to discriminate against people with awesome credit that can’t afford to make a large purchase?
This sounds to me like discrimination against the poor, many retired persons, and single parents. When we have obviously qualified for the loan, although we do have limited incomes, and when our FICA is “excellent,” what is it that makes us “less desirable?”
How can it be legal?
How can that be legal?
Re: How can that be legal?
The intersest rates are higher only if you are financing the home alone.If you have the land and do a conviential morgtage then you would get the same low rate.Any house without land will depreciate quickly so thats the reason your rates are higher.Car rates are lower because they are usually 5 to 6 year terms compared to 10 to 15 for a typical mobile home only loan.Without land it isnt going to be worth too much after 15 years(from the lendors point of view).Any lendor who told you that you mobile home owners were more likely to default wasn't very bright.
Re: How can that be legal?
As the other post here says...you are not comparing apples to apples...
Mortgage finace like a stick built is available at the same rates...home only finace is not available for a stick home..but for manufactured home it is and it is much more expensive..Lender loss experience is the reason they charge more...Manufactured homes with legitamate down payments and credit apps are NOT more likely to default...but the losses in home only are much higher when they do..
For the best parks...commonly called 5 star..There are some lenders with specialized programs that have those very low rates home only..Consumers in this type a community are very good and homes tend to appreciate over time as well...the risk is lower..the price is lower...
Check out buying a lot in your area...
Mortgage finace like a stick built is available at the same rates...home only finace is not available for a stick home..but for manufactured home it is and it is much more expensive..Lender loss experience is the reason they charge more...Manufactured homes with legitamate down payments and credit apps are NOT more likely to default...but the losses in home only are much higher when they do..
For the best parks...commonly called 5 star..There are some lenders with specialized programs that have those very low rates home only..Consumers in this type a community are very good and homes tend to appreciate over time as well...the risk is lower..the price is lower...
Check out buying a lot in your area...
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