Trouble getting trailer/land package financed.

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bcbuschkill
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Joined: Wed May 18, 2016 6:25 pm

Trouble getting trailer/land package financed.

Post by bcbuschkill » Wed May 18, 2016 6:52 pm

I am trying to buy an amazing five acre plot with a mobile home, and a heated, very nice 3-car garage with two horse stalls on the back. The property is perfect for what I need, and in a great location. The asking price is more than reasonable for everything I would be getting, and I am pre-approved for much more through my lender. The mobile home, however, is the primary residence, and though it has several nice, recent updates, it is an older model, and therefore only "worth" about $8700, which is a little over 20% of the asking price. The home has not been appraised, but based on the age and dimensions, that is the bank's estimate.

The bank refuses to finance the loan, because the 'primary residence' is not worth at least 51% of the loan value. I get that they need it for collateral against the loan, but I don't understand why they only consider the value of the mobile home and not the property as a whole. If I were to default, the land and the other buildings on the property would all belong to them as well, and they are worth far more than the asking price. I have a meeting with the bank tomorrow to discuss this further, but can anyone shed some light on this for me?

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