Palm Harbor at cost

[alexlcameron]

I am looking at a Palm Harbor Edison II that is priced "at cost." The invoice is $75682.00 plus another 13k for deliver set up heat pump and skirting. I do not have a large down payment and the lady said that if I paid for and apprasial ($500) that it would appraise on the lot for at least 110,000.00 and we could use equity as down payment. In addition she wanted an additional $500 to "take the home off the market" Does all of this seem legit? I have given them $1000 and only half would be refundable if we back out after apprasial. Any help is appreciated!!

[rmurray]

Sounds like a pretty good deal to me....Who is going to do the land prep and pay for permits and/or impact fees...Are you buying this home from a Palm Harbor owned sales center??...I am familier with this front porch model...It is a 1300 series (top of the line), Palm Harbor it has many standard features..Many of which other manufactures do not offer at any price...Be sure you get every detail of ther deal in writing... (What kind of heat pump and what size, type of skirting,steps, ect..ect)..Your second $500 should be downpayment against your balance..
Of course the appraisal is location dependent..The appraiser will be trying to determine the value of the land AND home as if the home was already there..Do not forget when you are doing your math that there is sales tax,permits,impact fees and closinhg costs...These can total well into 5 figures..Your land balance will also be added...

Be sure NOT to lie about downpayment...You will NOT be asked to do so at a Palm Harbor owned location..but there are a few independent dealers left who would ask..All your paperwork should reflect only exact money you have given them...

The price of the home seems good..The other services seem a little low..You will be financing about 105,000 PLUS the balance due on the land...Has she gotten you a full approval for about these figures..Have you seen the RESPA disclosure forms already?. Here the full payment and closing costs should be disclosed...She should also know just how high of appraisal she needs to do the deal...See if it makes sense for your location...I have done many deals with similar structure..

[alexlcameron]

Yes I am purchasing from a Palm Harbor sales center. I am doing a home only loan. I am not tying the land in (its my mothers) sales tax is figured in @ around 3.5% I have filed a Form 500 that states that all pricing is estimated and shows $500 as refundable down payment and $500 for apprasial. Also, i am waiting on the first page of the sales invoice of the home. the one I have gives details on $11365 in options but the remaining 17k is not shown. The total on the Form 500 is 92144.02 "total home value (insurance Value)" minus the $500= 91644.02 The home is beautiful. From the options page I do have it features the "Hyde Park ext #2 32W to 54' HUD"... I assume this is an alternate exterior?? Please let me know how this being a home only loan will affect things! thanks for your fast reply!!

[alexlcameron]

Another note* The site is set up with septic and well with lines already ran to where home will sitting. I see the confusion with land and home I said "lot" in my original post... I think of MH dealers as car lots... I spoke with saleswoman today and she said the MH sitting at the dealership will bring apprasial of appox $120,000.00 This seems odd to me when I mentioned that seeming high she said that home sold originally for 118,000.00

"Have you seen the RESPA disclosure forms already?. Here the full payment and closing costs should be disclosed"

Is this the Form 500??? otherwise I have not seen them.. closing cost have not been mentioned either.

Looks like I may be out $500.00.....

[rmurray]

I read both your posts and am clear thatr you and the lady are NOT on the same page...She is workinhg on a land home mortgage....THERE IS NO APPRAISAL FOR HOME ONLT LOANS...ALL HOME ONLY LOANS REQUIRE A MINIMUM OF 5% DOWN AND VERY GOOD CREDIT OR ABOUT $ 5000 for you...They have little or no closing costs and carry slightly higher rates..But Always have verifiable downpayment requirements....The home could be worth 1 million and you would still need $5000 down...

Understand they CANNOT keep your $500 because they will NOT EVER order an appraisal...She must need additional training....Call her general manager and explain you have no land to use...She might be thinking you might ask your mom to deed the property to you..Then the land would be additional collateral..Of course if you do not pay bank would get the land...If this is impossible or not going to happen, tell the GM to start your refund request...

Land prep involves sewer, water,electric hook up. Also grading, footers,steps, utility permits, placement permits, driveway access,on and on..ALL THIS WOULD HAVE TO BE COVERED IN YOUR FINAL FORM 500.....

3.5% sales tax seems awful low...What state would your home be in...

Respa forms are ONLY required on land home mortages..Home only does not have a disclosure, mostly because there are no closing costs..


I would suggest NOW you have a meeting with the General Manager and be sure you all are on the same page...Maybe he can help you find the 5% down you will need...

[alexlcameron]

I am in TN.. I explained to them that I was not using land in this deal and that it is a home only loan... I will schedule meeting right away thanks so so much!!

[alexlcameron]

ok... I went and spoke with the sales woman.. the GM was gone for the day. He is the one who said I could do this in the first place... However she called around Countywide I think and you were correct about this.. she said she would give me both deposits back however in my anger I did not get this in writing. I am very angry that they were not honest up front I dont understand this deception.. The form I filled out indicates its a home only loan and when the GM and my saleswoman were sitting with me she looked at this man and said its home only and he acknowledged this and said we could still proceed with this. I can only hope I get my 1000 back at this point.

[rmurray]

She probably did call Countrywide..They are the finance arm of Palm Harbor...

Sorry for the problem....You WILL get back your money...You might want to relate your story to the highest management of Palm Harbor....The President is Larry Keener..
He can be had at 800-456-8744, ask for Larry Keener...The regional manager is Duane Bush....Ask the abvove number for his...Also call Corporate Customer Advocate/Customer Satisfaction Department at 1-800-456-8744 Ext 9472.

Maybe you will help someone else....The deal ia good...All lenders will require 5% down at any dealer on any house...Maybe you can find a place to find 5K...