Financing new or used

[Dianna]

I found a great buy on a Franklin 28x80 1998 for 42,000.
It was hardly lived in.
I love the house but, am wondering if there is a place that would give me a good interest rate on a used home.
My credit score is good and I'm paying on the land we'd like to place it on. Has all the utilities ect. already on it. ( 10 acres 23,000.00) There is another house on the land and a building.
I'm wondering if the interest is to high should I just keep on looking?
A small dealer is selling it and he only works with Greenpoint and Chase (high rates) He suggested I find my own financing...
Any suggestions would be helpful!
Thanks in advance,
Dianna

[Ramb37 (old ron)]

Try obtaining a land/home package loan thru your local bank. This will pay off your exisiting land loan and wrap the new mortgage around both the land and the home. You will need to include costs for a permanent foundation in order to get the best loan rate on this deal.

With decent credit and establishing this home on your own land, you should qualify for a lower interest rate loan on this package. Your bank can look at federally insured loan packages such as Freddie Mac and Freddie Mae.

[Shelby]

Dianna, where did you find 10 acres for $23,000? I've been looking for over a year and haven't found anything. Are you in either Georgia or Alabama?

[Randy Eaton]

Hello Dianna,

Land/Home loan for a used manufactured home should be around 8% if you have good credit. This is a rough guess but you should be in this range. New financing is in the 6% range for a land/home package, used loans usually run 1% to 2% more. Hope this helps and have a Happy New Year!

Randy Eaton
www.buymfghome.com

[Shelby]

Randy, I just spoke with a dealer last Saturday (Dec. 29) who said that interest rates for land/home were between 7% and 8%. This seems high to me right now. My credit is excellent and I think he's wrong about this, or does it vary from region to region?

[Randy Eaton]

Hello Shelby,

Not really, the intereste rates are standard throughout the US. I would not go to a dealer for this information. Go to your local banks in your area. But rates are in the 6% range for good credit right now.

Randy Eaton