Any dealer in Arkansas...

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Any dealer in Arkansas...

Post by Carol » Tue May 20, 2003 3:58 pm

I live in Arkansas and I am looking to buy a 32x80 new mobile home. I am looking for a 4bdrm. one that is good quality and looks good. I have my financing and that is where I come in to a problem. I have been approved for 101k land home but the dealer I was dealing with is refusing to put the home on the land first and then NBA Bank will pay them. I did not know this is how I went so I am in shock b/c this dealer will not put the home on the land and then be paid and I don't know if that is standard practice in the mobile home bussiness or not. If anyone knows of dealers who can help me please let me know. Please email or yahoo im me at kimhaw_1999.


Re: Any dealer in Arkansas...

Post by rmurray » Wed May 21, 2003 1:53 am

It would be a fool of a dealer to locate a home and commit to all the permanent land improvements on the strength that you MIGHT close the loan...

There are many things that can happen he has to worry could die, rates on the permanent loan could go up and you no longer qualify, your credit could go downhill in the next few months and you no longer qualify, rates on the permanent loan could rise and you refuse to sign..The broker you are currently working with could be lieing about the terms...later to hit you with higher get mad and do not sign..

If your land is free and clear...My dealership might proceed if you give us a quit claim deed or mortgage on the property before we start...but you must have some sort of serious committement..

No stick builder would build on others land in the HOPE that the final loan would close..

Ask your loan source if they have construction loans (also called bridge loans)available..This solves both of your concerns...It commits you, pays for things as they are done and inspected by the bank....That way you are not paying him before he produces...All his profit will be in the final draw..which means he does not benefit until the job is done..

There are 2 kinds of construction loans...1 time close loans that pay the builder as he goes and converts to a predefined permanent loan when complete...this is the best with the lowest costs..
The other is a stand alone construction loan..They will have higher costs at the beginning..but the rate on the long term permanant loan might be lower than the above process...

Good Luck

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