The Manufactured Housing Forums

My husband and I are currently looking for land to put a new double wide on by the first of the year. This is our first home purchase and our land cost will be about 20,000 and the new double wide will be about 55,000. We dont have bad credit, and we have paid off all our bills (cars, credit cards ect.). We make about 32,000 a year and wonder what kind of down payment we will need. Also, will we have a problem trying to get a loan?

Based on your income and zero down payment, your monthly payment could not exceed (from most lenders) $888 per month. (Your total loan package of $75,000
divided by 1/3 or .33% divided by 12 months.) Figuring that you get a 30 year fixed rate mortgage at 7% interest, your monthly payment would be around $525. So you will meet most lenders monthly payment maximums.

Down payment requirements are hard to assess. If you went FHA insured loan, you can expect about 3% down payment or $2250 plus 1% or 2% in points and other closing costs. (Home must be on a PERMANENT foundation for all the above to apply.)

You need to roll into this $75,000 package the costs of grading the land, well and septic, (if needed,) driveway, electrical service, and permanent foundation costs.

You will have some problems with CONVENTIONAL lenders with a no down payment request. MH dealers may have some programs, but their rates will be higher, because of the zero down risk factors.

There are First Time Home Buyer programs available through some banks, and other lenders. You can check with your local United Way agency to find non-profit agencies who might be able to help you purchase the home. Most lenders require you to complete a Home Buyer course (about one night a week , 3 hours, and over 8 weeks.)

Hello Renee,

I would encourage you to try to put at least 10% down or more. The more you put down the better your interest rates. You need to figure about $10 to $15,000 for site impovments if your placing your new home on a concrete foundation. Hope this helps.

Randy Eaton