"buy for" mortgage

[Kelly Lewis]

My friends are looking to purchase a mobile home in CA. This would be a "buy for" mortgage where her daughter would apply for the loan. Is there a problem when they are wanting to put the mobile on the same parcel as the daughters house even though the property is deeded into two parcels?

[Roy Bonney]

You need to check this out with the local zoning office, and then maybe a real estate attorney. Every area of the country is different.

[rmurray]

It is unlikely to be able to go on the SAME parcel as the other home..If the lot size meets local requirements..it probably could go on the empty parcel...
Check with your local building officials...


I hope your friends sister understands a "buy for"...There really is no such thing...She must be careful not to defraud the lender by saying she will live in the home if she does not intend to..There are mortgage lenders who allow investment properties...If she decides her sister can live in the home and pay only the payment....That is her business...Remember insurance is much more expensive..taxes are usually higher as well on rental homes..

I hope she has not been given the old sales line..."you do this buy for and your sister living in the home will be able to refi in 12 (18 or 24) months"...beware...this type of business is in NO contract...The sister who needs the help would have to credit and income qualify...Most importantly...rates are very likely to be higher by then and the payment much higher if refinanced...Of course the salesperson with the line has long ago spent the commission...