conventional loan vs. fha

[Larry]

I have a 2001 Palm Harbor in a park. I want to purchase a lot and want to know the difference between the loans. And by the way, my sells rep never told me anything about a chattel loan and how much I can save by putting the house on my own land.

[Charlotte]

Can or will someone please explan to me the difference between a Chattle loan, a conventional vs. a fixed rate etc.

I don't want to get caught in the same place this gentleman is in.

Thanks. Charlotte

[jgn]

Chattle is personal property and a chattle loan is a personal property loan or home only loan. These are at a much higher interest rates because of the risk the lender is taking. Conventional loan is generally through a savings and loan, bank, mortgage company or credit union. A conventional loan is normally the best rates but not always, is normally associated with real property, land and home, requires a good credit rating and requires a down payment of 5-20%. Less than 20% and you pay a mortgage insurance called PMI which goes away as soon as you have 20% equity in your property. FHA is Federal Housing Administration and is backed by the government. You generally need less down, not as good credit as the conventional loan and the home must comply with some very antiquated building codes and rules.

[rmurray]

chattel loan ....home only loan similar to auto finance...there will be a lien on the title..home can go anywhere..land that you own, mh park like this fellow, parents land...anywhere that placement is legal...Downpayments are at least 5%..rates vary with cre4dit scores and downpayments....example...640 score..5% down is currently about 12% at most lenders....20% down...740 scores can be as low as 7.75...Usually there are low or no closing costs with this type of loan...

Conventional..can mean many things...in the case of a "conventional mortgage"..this is a real estate mortgage that does not have government guarrantees....such as FHA, VA or FmHA....but conventional loan to many manufactured home salespersons mean chattel loans...

Fixed rate...means the interest rate never changes...There are variable rates available on both mortgages and chattel loans...This means at some time in the future (could be as soon as 6 months or as long as 10 years)..the interest rate will adjust to the then current rate...Most but not all of these loans have some sort of cap on increases in the future..Details can be very confusing and should be read well and explained by a trusted financial adviser..

[rmurray]

Your sales person did not give you good advise because he/she got his commission check very quickly with the loan you have gotten...

Not knowing the price of land in your area...it is hard to comment on how much you can save....but is the land is 20K or less..you should be able to save a lot every month when you figure in the lot rent...It is worth doing the research...

[Larry]

Also when I closed on the deal at palm harbor, I paid $5495 to buy down points. Again something my sales rep never told me anything about. So instead of 12.79% I got 11.75%. Does this sound right to anybody. I am telling all this so no one else will have to go through this.

[rmurray]

Buy downs are possible on both home only and real estate loans...This is prepaying interest to get a lower rate....In this case since you refied the home..PH's lender won big...If you had paid month to month for the full term you would have won big...

Nonrefundable points are interest...and are fully deductable on your income taxes...You might want to talk to a tax pro about filing an amended return...You tax refund could be over $1000..

The worse buy downs are sometimes common on real estate mortgages...They are a single year buy down that makes the first year interest very low...with large increases in the payment the second year...

Folks should read EVERY line of large loan documents...Ask questions and get legal advise when you are unsure of the answers...Candidly...you make it clear you did not read you closing docs..the buy down would have been clearly disclosed...If others get a lesson here...It is read everything...only written info counts...get advice from a trusted professional....

[John]

Real estate attorneys are not that expensive and with so much money at stake, hire a lawyer to review everything before you sign it. It will cost a few hundred dollars but could save you several thousand on the other end. PH is big on point buydown because that is pure profit to them. To pay $5,500 to buy down a point will take you 9 years to just pay back the buydown on an $60,000 note and longer on a lesser amount.

[Dennis Reilly]

I want to purchase a manufactured home from sale by owner. The home is in a manufactured home park. How can I get a competative financing to purchase this home, and what things should I look for when purchasing from owner without a realty agent?
Seem to be having a problem wtih finding a finance company for a chattel loan. Any ideas?

[David Oxhandler]

At ManufacturedHomeLender.com they match manufactured housing lenders and borrowers


ManufacturedHomeLender.com offers a convenient way to shop for a MH loan in a secure, pressure-free environment. You don't have to leave home, spend hours on the phone or jump through hoops to get the best rates, because they do all the legwork for you.


With ManufacturedHomeLender.com , you'll save time and money. You will discover which participating lenders offer the best programs and rates to meet your needs. Starting out with the right loan can add up to substantial savings over the years.


The best part.... the service is always FREE for anyone looking for a MH loan


Click HERE to go there NOW!