dealer arranged financing

[InfraRedZX3]

I wonder what percentage of buyers opt to have the sales center arrange financing for them, and how happy the buyers are with the results...

I decided to go that route, but was disheartened with the results. Dealers talk about how they have a network of banks they work with and how they are able to get the customer a low interest rate, etc, etc, but it isn't necessarily so.

My credit history is flawless, and my credit score is above 800, yet the best rate I supposedly qualify for is 7.50 (30 yr - fixed). The sales consultant told me I would be financed at 6.25%, so imagine my surprise when the documents arrived in the mail and I saw the 7.50 figure.

I was also surprised that I could only borrow $104,000 (the home/construction estimate is $118,000). I mean, besides my excellent credit history, I earn a very good salary and have little in the way of monthly debt. I have plenty of monthly income to put towards a mortgage!

I ended up turning down the offer. I figure I can do much better arranging for financing on my own.

[Randy Eaton]

Suggestion, most people depend too much on the sales center. Once the sales center or retailer has gained your trust with finding a home, you let your guard down and accept the terms of financing without shopping around. Manufactured housing sales centers have relationships with lenders and can arrange financing for you. Most will have higher fees, so remember you want to shop for a lender, just as you shopped for a home. I know what some sales centers are saying right now, that’s not fair we work hard to find the best financing for our customers. And some do a very good job, but others do not. So, do your homework and be informed. If your sales center can secure the best financing for you, take advantage of it. In A. M. Watkins book, Manufactured Houses Finding And Buying Your Dream Home For Less, he states, “No matter what kind of financing you seek, the importance of shopping for a good loan at the lowest cost cannot be overstated. You will generally save by obtaining your own loan direct from a lender, rather than financing the deal with your friendly mobile-home dealer who will be delighted to handle the details for you. It’s convenient, all right, but it can also cost you extra money. After all, the dealer must do extra work, so why shouldn’t he or she be paid extra.”

The best advice I can give you is, spend some time talking with local lenders in your area before you head out the door to look at manufactured homes. I recommend contacting at least three different lenders and ask for a loan officer. The first question I would ask is…does your bank specialize in manufactured home loans? My second question would be, what are your interest rates? Or, how much is required for a down payment? Questions like these will help you understand your financial situation and give you the edge in dealing with a sales center. Find a lender you feel comfortable with, one who listens to you and offers practical alternatives for your particular situation.


Randall Eaton

[rmurray]

Most customers allow trhe dealer help them with finance...This has become an additional profit center for many dealers...Sounds like what they were doing to you..


Might consider another dealer...You are EXACTLY the customer EVERY lender wants...

Now you should be quoted about 6.25% (I closed a 590 beacon with a bankruptcy on their credit at 6.75% last night)...30 year note..

Closing costs should also be VERY low...No more than 1% origination fee and standard costs that all loans would have...About 3.5 to 4% total for a loan of this size..

Shop around..

[rloyd]

Mr. Murray:

Was this a land/home package that you closed on? Just curious

[Mike]

Please tell me how you closed on the deal with 590 beacon and bankruptcy on record????? Thank you Michael

[lou]

yes i would like info on this situation also. please murray, explain more. thank you