The Manufactured Housing Forums

My husband and I live in a rural area of Southwest New Mexico. We wanted to buy a Palm Harbor on 10 acres with a big shop, horse corrals, and a creek running through it. Beautiful site. We wanted to use VA with no down, and found out that most banks in our area do not finance manufactured homes anymore, and not all banks do VA loans. We did find one bank that would lend on a manufactured home, but required 30% down. Wells Fargo was our only option and we were approved for the amount of the offer, and the appraisal, which we paid for, came in at the same amount. We were about to celebrate when the bank called back and said the underwriters would only fund $168,500.

After a long weekend, the seller was almost ready to accept that amount when we got a third call from the bank, saying Wells Fargo had this 5% fee they charge when the underwriters won't fund the full appraisal price. So that reduced the amount to $9,000 less for a total of $21,000 less than the appraisal. Needless to say, that knocked us out of the deal as we didn't have 9,000 for this fee.

I wonder if anyone else has experienced having an appraisal lowered by the underwriters, then having to pay a 5% fee on top of it?

Thanks

Mortgage finance has changed much in the last 24 months..Have you tried talking to supervisors higher in the command of Well Fargo...This would protect you from a unscrupulous originator (mortgage sales person). In addition to the VA you might want to talk to your local FMHA office (Farm Home Loan). Most often in USDA (Department of Agriculture ) office. They are especially equipped to do rural home loans.

The Wells Fargo underwriter must take issue with the appraiser's compatibles or explanation why he had to find them so far away.. I have always found that no down VA mortgages are especially hard to close. Most VA approved appraisers are VERY conservative and VA rules are very strict on the lender.

With a VA no down loan, I do not think the borrowers is allowed to pay the additional fees....Most times the seller is required to pay the closing costs..You might want to approach the seller 1 more time. He is lucky to have you at all in this tough housing market..

GOOD LUCK