How long before refinance of MH?

[Lil' Woman]

I have pretty bad credit (score of around 590, bankruptcy 3 yrs. ago, nothing bad since). I have been approved for a new double-wide home by putting up land in lieu of cash. The monthly note is more than I hoped for though because of a high interest rate due to the bad credit. I have pretty much decided against going through with it. The dealer keeps insisting that if I just do it now, I can refinance for a lower note in "2-3 months." He says people do it "all the time" after only a few mos. and the lenders "fight for your business". I don't believe him at all. I think it would take at least a year, probably 2 yrs., of payments before I could refinance. Who is right??

[rmurray]

You are the one that is right...RUN..do not walk from the LYING dealer..

For other folks sake..if your state has a license board for dealers..you should file a complaint about these lies..This kind of dealer should be out of business..

Now check out a good dealer...The FHA will finance you even with this low of score if you have reestablished credit (they even count rent..electric bill, phone..anything paid monthly for at least the last year)...rate will be the same as the most preferred credit ...about 6.5% right now...

Sorry you had to run up on this kind of CROOK..

[mac]

I'm with you. The loan needs a payment history of a year, in my experience. This is known in the finance biz as "seasoning." While you are out there, take some time to talk about this with some of the larger folks, like Wells Fargo, etc. and see 1) what rate THEY might offer, and 2) how seasoned an original loan needs to be, in your case, and 3) what you might save by doing so.
Cheers, Mac (not an expert)

[Andrew/RHLending]

The two posts above mine are right, beware.

If you are on a high rate mortgage, probably subprime, many have "hard pre-payment" penalties if you refi in 2-3 years. The penalties can be severe.

I would also advise that you do an FHA loan. With your land as equity and your scores, you should be able to get a loan (as long as there are not major delinquent items like tax liens, foreclosures or currently past due accounts).

As to seasoning, FHA only needs 6 months here in Texas (at our bank in Texas anyhow). FNMA loans need 12 months. Seasoning just means that you can use the appraised value instead of the acquisition cost when you refi. Reputable companies are always good, referrals are even better.

Bail on the dealer forcing the loan that is good for them and not you. You have the ultimate veto power....just say no.