Financing

[Mary]

I am planning to get financing for a land/home package - home will be placed on a permanent foundation. I would like to use traditional financing, however, I'm not exactly sure what types of questions I should ask the bank. Do I first determine if they specialize in manufactured home loans and then proceed with questions about land/home packages? Or, does the fact that it's a manufactured home even matter when it's going on a permanent foundation? Also, would this be considered a construction loan?

Thanks,
Mary

[Randy Eaton]

Hello Mary,

You do need to find out if the lender specializes in manufactured home loans, some banks do not. A land/home package is common or a construction loan. Both are referring to the same loan package. Someone who understands manufactured home loans will know what you're talking about.

Randy Eaton

[rmurray]

Actually a bank is not the right place to go...You should be dealing with a mortgage company...Many banks have mortgage companies as part of the family of companies....Example...Wells Fargo Bank is owned by the same corporation as Wells Fargo Mortgage Com...but the mortgage company has different offices..


There are many mortgage companies in the business...They need not specialize in manufactured homes...but it is easier to deal with an originator that does have some manufactured home experience...

Some mortgage companies have manufactured home specialists...Example Wells Fargo Mortgage and National City Bank Mortgage...Wells Fargo has individual originators in most offices who specialize...National City has 1 office that specializes..

The web is a great place to shop...Current rates are under 6.5% for 30 year fixed rates right now...Lowest in over 40 years...

Be sure to shop closing costs...Origination fees should be NO more than 1%..There should be NO broker fees...Remember...originators can manipulate the rate to get larger commisions..Be sure you shop both rate and closing costs...Even the rate lock terms are different between lenders..This could be very important if rates start to rise...

Ask your dealer for advice...See if he knows of any good local originators...

[Mary]

I have located a list of lenders that are authorized to originate loans in Virginia.
I will start with Wells Fargo Mortgage since there are 3 in my immediate area and proceed from there with my 'shopping around' ;-D
Thanks!