The Manufactured Housing Forums

I am trying to refinance my mortgage on a 2001 Champion home (it was classified by the dealership and manufacturer as modular but now the appraiser is saying it's a doublewide). We have $123,000 balance on the mortgage and it appraises at $128,000. The company I was going to refi through can't do it and other's I've found don't do land/home, just the home. I have pretty good credit, it's just the LTV ratio that's killing me. Do you know of anywhere I can look that could knock down my current rate of 8.875% from 2001? Thanks.

Sure seems to me that any conventional-mortgage bank, broker, etc. will do this.

First...you should determine if your home is a modular or manufactured home...

A HUD certified manufactured home will have a HUD lable on each section of the home..The lable is about 3"x5" and is red in color...On the front door side it would be attached to the exterior on the long side of the home near where the tail lights would have been...It will be about 6 inches from the bottom of the siding...

If that lable is there...your appraisor is correct..If it is not there there will be a data lable inside the home that certifies that your home is a modular....If this is true...The appraisor is wrong and the value of the appraisal can be in question...There is a completely different system for appraising modular homes...Usually the appraisal will be higher...This would help on your loan...

Remember appraisals are more of an art than a science...It is not unusual for some to be as much as 10% higher...You might talk to other appraisors...even pay for a second one...

Even if your appraisor is correct..there are many lenders who will refi up to 97% of the appraisal...Lowest rates now are about 5.625% with about 3% in closing costs...They would finance about $ 124100...The rest you would have to pay cash for..Often you can take a slightly higher rate and lower the closing costs..

In this case you would save about $ 3600/year in interest...A substancial amount...You will have to pay PMI insurance for the first 10 years or so which lowers this savings...There is a way around this as well...2 mortgages...one for 80% at 5.625% (no PMI)..and a second mortgage for the rests at about 7% interest...If your credit is good...this might be the cheapest in the long run..

Try any large mortgage companies in the business in your area...Remember the originator is a commisioned sales person..The higher the closing costs..the higher the rate..the more they make in commsion...