Refinancing my mobile home

[Susan]

Hi Chrissy,

I currently live in a mobile home that was constructed in 1972. I own the land it is on. Based on other mobile homes that have sold in this park, it is worth over two hundred and forty five thousand dollars. The mobile home is in perfect condition.
Because the government will not purchase loans on mobile homes built before a certain date, I cannot refinance my home and take advantage of the low interest rates available to all other homes in this country no matter what condition they are in. This seems so unfair to me. My husband and I are retired and could use the lower house payments a lower interest rate would give us.

Is there anything we can do? Is anyone addressing this problem?

[Chrissy]

Have you surrendered the title to your home to allow it to become part of the deeded land on which it sits? In some areas of the country, this will then enable you to get a land/home loan which will effectively lower your interest rates. Another option is to go to a regional bank or credit union for financing. They are usually more in tune with values in the local area.

[Rich]

I'm in a similar situation, a pre HUD home on property I own. I tried to re-fi after a divorce a year ago and couldn't find any company that would finanace a pre HUD home. The company I'm currently financed through bought my mortgage about a year ago from the original lender and they won't even help me with a re-fi. I'm not familiar with the 'surrendering the title to allow home to become part of the deeded land' thing. Can you explain this in further detail. I'm already on an 8 point foundation, making it real property. I'm paying a 11% interest rate right now and would like to get that down to a more reasonable rate if possible. I can see now that trying to sell would be next to impossible unless the buyer had cash. If I can't refinance how can a prospective buyer find a lender?

[Chrissy]

When you surrender the title, it makes the home part of the real property on which it sits. This allows you to finance a land/home package and take advantage of real property rates. When you talk to a bank or lender, don't ask for financing for a pre-HUD home, ask for land/home financing, and base the loan value on appraisal value.

[Jason Sardi]

Depending on where you live, I can help you in refinancing your home. I am a broker here in Pennsylvania and we have several lenders offering very competitive interest rates. If you live in PA, I can help. If not, I can still let you know of other companies who can help you refinance around the nation.

Regards,


Jason Sardi
Toll Free 1-866-262-8720 ext. 229

[Storm]

The term "surrender your title" is a little misleading. First, you can not convert to Real Property (surrender your title) if your mobile home/manufactured home was built prior to June 1976. There is virtually no lending available for this type of situation. If you find yourself in this situation your only options are outside the normal traditional lending opportunities. i.e. private investors, credit unions, etc.

Converting to Real Property is a process that differs from state to state. In most states, this process involves contractors who install foundations systems under the mobile home. A series of inspections by local and state agencyies will accompany the process. Finally, the appropriate and correct documents must be recorded by the County Recorder before a mortgage lender will lend on a qualified manufactured home.

[Ardis]

I live close to Spokane, Wa. and would like to refinance our 96 28x48 Moduline which is located in a MHP. We do not own the land but pay monthly for our lot..Its in a 55+ park...

[Betty Bell]

Our mobile home has been build on to and bricked. Surrendered title toTexas Department of Housing and Community Affairs. We have sold the property and are waiting to receive new title. The manufactured Housing Division has cashed check--but seemed to have misplaced the papers we mailed. Faxed papers to them today. Do we have to wait to receive this before closing?

[Chrissy Jackson]

Yes, I would think you would have to waIt. Otherwise, what do you have to show ownership to the new buyer?

[Stan Prentice]

Our pre-HUD mobile is 1000 sq. ft. 6 years ago a previous owner of the home added another 800 sq. ft. stick-built addition with a den and 2 more bedrooms. The mobile half is not on 8 point foundation.

The previous owner is carrying our loan, but we have a balloon payment due in 4 more years, and I'm afraid we won't be ablet to get new financing at that time. I'm also afraid we won't be able to find a buyer, since they'll face the same problem.

How to proceed so that we aren't stuck losing our home in 4 years?

Stan