Buying a new mobile home

[Roscella Palmer]

I would like to know if it is true. Approximately three or 4 yrs ago we refinanced our mobile home and included the land which had been free and clear up until that point. What I would like to know is, is it true that if we decided to buy another mobile home would we have to first pay off this one since we included the the land, or is there a way that we could buy another mobile home usings the same financial person which is now Green tree to get a new mobile home or can we buy another home using financing by someone different, placing it back on the
same piece of property?

[rmurray]

First...check with your local government about 2 homes on 1 lot...this is not allowed in many areas...in some areas this is OK..

Greentree no longer finances new manufactured homes..

If allowed by local government..there are many companies that will finance home only purchases which could be placed on this land...Downpayments will be from 5% and terms usually about 20 years...rates will be from 7.5% to 12% depending on your credit rating..and credit will have to be pretty good..

You will not be able to use the land home financing to buy a home without the original mortgage being paid off..or refinanced into the balance...but mortgage companies will not finance 2 homes on 1 loan..

[Roscella Palmer]

Think there may have been some misunderstanding from my original message. I do not want to buy another sperate mobile home to place on this lot I want to get rid of the one I have in order to get another mobile home and just have it placed on the same lot. Please respond to this and thanks for the prior answer

[mac]

It sounds to me as though you would be looking at conventional refinancing, with a construction loan as a bridge to pay for the new home, unless you have enough equity in the land to use a home equity loan to pay for the new home, then refinance.
When you refinance, the old loan is paid off with the proceeds of the new one.
Hope this helps-
amateur Mac

[jgn]

You woul d have to qualify for a mortgage big enough to include the new home and the balance of the current home. If the new home plus land appraises to include both of these than there should not be a problem but they would pay off the existing loan and start a new one. If possible it would be best to pay off the existing home, sell it and get the new one.

[rmurray]

What you are talking about is a trade in...Should be no problem...You cannot sell this home direct to a consumer...unless you receive enough to payoff the whole loan...but if you trade..the balance should be able to be rolled into the new loan..

Trading a home (or even selling it to be moved)..means you are going to lose any real equity you might have...By far the best financial thing would be to sell the land and home as a package...and buy new property with the new home....

That land that was free and clear...is not free and clear now..Good Luck