finance

[pat]

This is a question that I would like Murray to address,
We are now in the final stages of starting a very small development company ( LLC ) and we need to know about 30 year fixed rate competitive finance for any type of home ( hud or modular ) on a poured full foundation. Are these easy to finance, who does the most of it in Indiana, are there any problem I need to watch for with these finance companies.
I have read many of your responces to questions asked. Most are to the point and seen honest.
Any advise given will be appreciated.
Thanks

[rmurray]

Permanently set like this you will have no problem finding lenders to help you sell HUD or mods...All the big boys in the business such as Wells Fargo, GMAC mortgage and scores of others will offer great programs for your credit worthy clients...

In addition if you set your homes to FHA, VA specs...both programs have great finance deals for those with limited cash and light weight credit...Setting all your homes to FHA specs can be a benefit for your other buyers as well since when they resell they will have the FHA/VA tool to help them sell..For HUD homes..FHA specs would only be slightly different than the set you are talking about..

Modular homes are more expensive (if for no other reason the cost of set up on the lot)...but they might have some small advantages....There are far more finance plans for special situations...such as no income verification loans...B and C credit financing..off balloon mortgages...interest only mortgages..unusual variable rate programs..the list goes on and on..

Some say appraisals can be easier with modulars...but in a subdivision HUD or mods will appraise easily after the first 3 sales are made...These will be the comps for all future sales..

As far as looking out for things...Nothing special...just remember lenders and banks are in business to make money for themselves and their stockholders...If good service and great prices serve that purpose..wonderful...but always like any business including yours their first goal is to make money...I would find 1 or 2 loan originators at good companies such as Wells or GMAC and refer all your customers to them..At least they will look at them as something more than a single customer and might offer a little better service..

Good Luck with your project...

[pat]

Thanks.