Financing Questions

[Rebecca Brock]

Hi! I have a few questions for you about financing a Manufactured House (some are more underwriting questions).

(1) What security instruments are used?
(2) What types of loans are offered? ARM/fixed? etc...
(3) What identifies the security of the loan (legal description?? of site?)
(4) What types of servicing issues/challenges do these loans present to servicing?

I would appreciate any help you may be able to provide. Thank you!
---Rebecca

[rmurray]

1),,,this differs with the state...but usually much the same as any mortgage...except the title of the home is retired..
2)..Every kind you can mention...fixed conventional..VA..FHA...ARMS of all sorts, no income low doc loans....balloon notes...everything that is available in stick built..
3)..Varies by state...usually a purchase money security deed...but each state has its own style...basically the land and the home are one...and are securing the note..
4)..About the same as any other type of loan with similar credit characteristics.....

There is one type of loan that is much different than stick built...that is chattel mortgages...much like auto loans with liens on the titles...can be 30 years long...and a bear to collect from those with inferior credit standards...