The Manufactured Housing Forums

I am living in MA and am persuing buying a mobile home in a co-op park (where all owners own a share of the land) because I am tired of renting but cannot afford to buy a house. As a first time buyer, friends & family are trying to advise me in certain aspects of purchasing - but their experience is in buying a traditional home so the circumstances of a mobile home are new to all of us. Already I have had to deal with an inept realtor on the seller's behalf...who seems to know nothing about the mobile he has listed (or any other) and when I have questions I've been told that buying a mobile is different than a house...but that's another long story.

In regard to the financing, I HAVE been approved for a mortgage through First Priorty Lending. I have been disturbed to find however, that I cannot take advantage however of the current low interest rates or even get some kind of first time homeowner incentive, as the lender also claims things are different with mobile's (they are saying interest rate will be around 7.99). I am wondering if all this is true or if I am getting the run around. I am also wondering if it is normal for the buyer to have to pay the lender a fee for an appraisel (they are requiring $300 non-refundable for this). Those I know that have bought a traditional home keep telling me I should not have to pay this, however the lender is making this a condition of getting the loan. Because so few lenders are willing to finance a mobile (particularly one that is older such as the 1978 one that I am considering) I feel a bit trapped, but don't want to be taken advantage of. If all they claim is true, I think that it is pretty sad, afterall it is like penalizing myself or others for not being able to afford a house and trying to stay within financial means.

You cant really compare a real-estate mortgage to a mobile home loan

If you were mortgaging home and land... stick or factory built the lender would absolutely demand an appraisal of the home, which would cost you quiet a bit more than $300. Additionally you would be looking at title insurance, recording fees and a few thousand in other real-estate closing costs PLUS points ( a small percentage of the loan amount) upfront to the lender for the privilege of renting their money.

The interest rates on home alone financing is always higher than if you are using real-estate to secure the loan. The loan you are looking at is secured strictly by the home. If you dont complete the loan program the lender is looking at paying rent to keep the home onsite or thousands to move it and relocate it.

You are NOT trapped. You can continue to pay rent. But that is not what you want. So so a bit of homework....Ask some of your new neighbors in the community and look at other local communities to find out what fees they paid and what their interest rates are. I think you will find that many are paying double digit rates.

See if there are better loan deals out there..Let lenders compete for your business. You get to choose from multiple quotes when you use the MH LOANFINDER SERVICE,

Their goal is to provide you with information to make an informed decision for your financial future. you'll save time and money. You will discover which participating lenders offer the best programs to meet your needs.