Financing - "We own the bank"

[Threnody]

What exactly does this mean? I have seen some local dealers advertise this.

I am thinking this is the only option we have for financing - while my credit is nearly perfect and FICO is fairly decent (nearly 700), my debt to income ratio is WAY high, and my husband's credit is shot because he was unemployed for 4 months, and one of his accounts has gone into collections (got the first phone call last night.) Are we wasting our time even trying to get fianced, or is there some finance company out there that would be willing to work with us.

We are desperate to get out of the glorified shack we're renting now. *shudder*

[r murray]

"We own the bank is a bs story used in marketing"...Go in and ask about the CD rates and checking accounts..

There are dealers and manufacturers who own finance and mortgage companies..but they have similar underwriting rules as any lender..

Your situation...If you are looking for a home only loan..you are probably sunk...But..a real estate mortgage is definately possible..

I commonly have customers with high Fico score closing at a debt to income level of 60% or more...but if you have a higher ratio than that...
You will need what is called in the mortgage business is a no income/low doc loan...Do not have your credit pulled too many times...some of the no income verification programs have 700 Fico requirements...These loans are available from many mortgage lenders...but the specialist in the area is Greenpoint Mortgage...You might look for a broker that deals with them or find their web site and apply there..Take your time and have fun chosing a home..

[KD]

GO TO WWW.THELOANPLACE.COM A TRUE MODULAR HOME CAN BE
TREATED AS A STICK BUILT HOME AND THE LENDERS WILL NOT BE SO
TOUGH ON YOU, AS THEY HAVE BECOME WITH MANUFACTURED HOMES.
ALSO, THE APPRIASEL REVIEW PROCESS WILL GO SMOOTHER BECAUSE
YOU CAN USE STICK BUILT/SITE BUILT AS COMPS.

[KD]

GO TO WWW.THELOANPLACE.COM A TRUE MODULAR HOME CAN BE
TREATED AS A STICK BUILT HOME AND THE LENDERS WILL NOT BE SO
TOUGH ON YOU, AS THEY HAVE BECOME WITH MANUFACTURED HOMES.
ALSO, THE APPRIASEL REVIEW PROCESS WILL GO SMOOTHER BECAUSE
YOU CAN USE STICK BUILT/SITE BUILT AS COMPS.

[KD]

OOPS ..................... DID I JUST ADVERTISE FOR THEM? OH WELL I USE THEM AND THEY DO A GOOD JOB.

[Thren0dy]

Thanks - we found a Homestead home today. (Man are those NICE) We were upfront about what our situation is, and the dealer gave us a Greenpoint app to fill out and we'll turn it in on monday. As I told my husband though, I won't get my hopes up until we move into it.

[rmurray]

The Greenpoint Mortage I mentioned is not available directly trough a dealer..Greenpiont used to do dealer generated finance but has stopped...that is why the dealer has the apps...

Talk to your dealer...You want only mortgage finance because of the rate...If they are not familier with low doc/no income verification loans...Check with a good broker in your area...

The home you have found is a very good value...good luck

[rmurray]

Sorry KD.....but appraisals will be changing in the next few weeks...
Fannie Mae ...the biggest mortgage company source of money..has sent out a new rule...
Manufactured homes comps...MUST be manufactured home comps..ONLY
Modular home comps....MUST bhe modular home comps..ONLY
Manufactured Homes comps must now have the make, model and year mentioned in the appraisal...
If....and ONLY if..the market does not have enough of the right comps...1 and only 1 stick built will be able to be used with explaination for both of the above tpyes of homes....

Along with this directive...Fannie Mae has made it clear that they are going to start filing complaints with the state licensing boards on appraisors that are major violators of the rules...

This week....The Georgia Board of Appraisors have adopted the same rule as the rules for ALL (not just Fannie Mae) appraisals in the State of Georgia...

We have already been told by a few appraisors to forget modulars..there just are not enough comps to generate an appraisal...

[kd]

rmurray,

did you hear about the law being voted on for georgia this week?
about making even home only sales dealers to be forced to have a brokers license? check it out with gmha if you have not heard. as far as the appriasels
go, i heard this would eventually take place but as far as any effect yet, not
seeing it. i understand the market in my area pretty well. i know several builders
i my area as a matter of fact one is my relative. he built a 1500 sq ft. home
just down the road that will sell for in the 80,s

the modular i was talking about does not fall under hud code. i am referring
to a true modular.. . with a crane to take it off the frame and being set into
a foudation. these homes can be compared to a stick built comp on an appraisel,
maybe it will change, nothing really surprises me in this business anymore.

[rmurray]

Fannie Mae and GA Appraisal Board are refering to the modualrs you speak of...true modulars...the ONLY modular available in GA...

The new appraisal rules take effect by rule...4/15/02...
Unless there are a whole lot of modular resales in your area..I would be careful with my inventory until the new rules shake out..I have read very little discussion from modular builders on the effect of this on their business..I would think it could be devastating...

The industry in GA has not policed itself very well...I would not be surprised if the government would step in to protect the consumer and the large finance businesses....Our business in GA has been an absolute shame until recently..There have always been a lot of good dealers and salespersons but they have been tarred by the significant percentage of out and out crooks...I hate government regulation as much as anyone...maybe if this bill fails..the industry itself will do something...