home loans for manufactured homes

[suebow]

If you own your own land and want to buy a manufactured home, a new one, why do they want to finance your land in with the mobile home? Seems to me that you would be paying for your land twice..................doesn't make sense to me at all. I know you would use the land as collateral but why either refinance or finance it in with the mobile home.???????????

I realize I am dense sometimes but this just doesn't make sense to me anyway I look at it.

Thank you for any explanations I can get.

Sue

[David Oxhandler]

Sue -

When you own the land free and clear and you include it in a home & land mortgage:

1- You don't loose the equity that you have in the land. It is usually used as a down payment or partial down towards the purchase and installation of the home.

2- You can finance just the home. But the interest rates are considerably higher on home alone loans then they are when the land is included. The total package offers lenders much better security.lower risk than just the home and they are willing to offer conventional mortgage rates. The reason... in the event of a loan default the bank is forced to recover just the home they will have huge expenses, moving and then resetting the home at another location...in the range of $8,000 - $20,000 depending on the situation with utilities.

If you are considering finacing a manufactured home and own the land, the difference in the interest rate will offer a savings over the term of the loan that can be huge.

[rmurray]

David is exactly right.. See my reply to another of your posts here;

http://mfdhousing.com/phorum5/read.php? ... #msg-77733

[suebow]

Thank you for making that more clear for me. Now I think I get it.
Sue