Putting home on in-laws land..

[Pablo]

I've looked through the threads here and couldn't find an answer to this question...

My situation is this:

I'm in Northern California and my inlaw's are going to let us place a manuf. home on their 2.5 acre lot that includes their house as well...no problem from the county but im wondering what kind of finance will be aval. because we will not own the land....their lot cannot be split.....so is a construction loan an option? Will we have problems fin. this in this way?

Thanks!

[rmurray]

If your credit is very good...You will have no problem getting a loan...Rates will depend on how good your credit is (credit score) and how large your downpayment is..

The best rates are about 8.75% with credit scores over 720 and full 20% down...

The lowest downpayment avalable is about 5%...with scores just over 640 you should see rates around 11 to 12%...

Small downpayment loans will be limited to 20 year term..30 year term should be available...but at high downs and higher rates..

For most lenders..downpayment cannot be a gift...it must have been in your account for 60 days...or if you sell something to raise the money it must have clear records of the sale...Such as selling a car..you would be asked for the bill of sale and title transfer documents..

If you credit score is not 640...It is highly unlikely you will be able to get a loan...Cosigners are seldom allowed and buy fors in your in laws name are very uncommon..they require excellent credit..large downs and are limited in total loan amount..(many will not do buyfors over 40K)

Land/home finance is at about 6 to 6 1/4% now...First time buyer programs (FHA) do not look at credit score..will use alternate credit (such as telephone payment records and many others) and require only 3% dowm...which can be a gift from a nonprofit charity...You might want to investigate the cost of land and development in the area..and consider buying your own...You payments could end up lower and you own it all..

Good Luck