Why can't we find a lender?
Posted: Thu May 13, 2004 1:37 pm
We are having problems getting financing for our project. We live in a 29 unit ocean front mobile home park converted to a titled condo community (no lease). adjacent to million dollar neighborhoods near Malibu, Calif. Our HOA is accredited & approved by the major lenders. We want to put a new Mf Home on our existing lot. Since we have more modern taste than is available to us, we are purchasing the home from the manufacturer and doing a considerable build out: custom kitchen, bath, floors, exterior finish, and deck. We owe $125K on our first. We need $150K to buy the new Mf home, place it, and do the build out. All total $275K. The estimated value after all finished is $450k - $550k - ???. Our search for a loan is going on 3 years. It seems the lenders we've spoken with don't understand the type of property/project we have. I have good credit (760), W2 employee, and money in the bank. The banks that are slightly familliar won't lend on the project until the new home is already placed. We have been persuing a construction to perm loan. Apparently since we want to put a Mf home in a (converted) condo community, that throws them for a loop. We have recently found constuction loans. Interest only at 10%, 3 points, title insurance, escrow, plus fees fees fees. Then we have to shop for a 30 year fixed & pay more fees & escrow? The folks that have specialized in this type of project in the past (place a new home in a condo community) are throwing up their hands because of the new restrictions from Fanny Mae and Freedie Mac. We have 3 neighbors in our park who are waiting to do the same right now. Does anyone have experience with a lender who has done this type of project recently?