Mortgage Brokers!

[Mario]

Alot of Salescenters shutter at the word "Mortgage Brokers". The first thing that pops in their minds are " Long time to close ", " Lose almost all profit by closing time ", " Rate and downpayment changes by the time you close ", and worst of all " One time closing only! ". I think part of the reason why Mortgage brokers aren't taken very seriously by retailers is because us reatailers have a tendancy of only sending them " weak deals " that got turned down by all the primary lenders. I think that the relationship between retailers and mortgage brokers would improve if the sub-prime lenders could offer staged funding. Retailers would have no problems sending their A-credit buyers to a mortgage broker if staged funding was available. My question is; Are there any subprime lenders out there that offer stage funding for mortgage brokers? If so, can any of them be accessed from Texas?

[Richard Poythress]

Staged funding or "construction-perm" loans are offered by a number of lenders we work with designed for "subprime" buyers. The advantage of staged funding is that the retailer can offer an additional source of loans for marginal credit buyers who have property with equity in the land, but little to no cash.
The downside is that it is expensive. Some loans, depending on the LTV, will require a construction loan from one source and the permanent "take out" from another resulting in two closings.The fees on such a loan, say 80,000, with no out of pocket downpayment or closing costs to the buyer can run in the 8,000-9,000 range after all is said and done. If a single closing with modification can be used,
the appraisal and the length of time the property has been owned or "seasoning"
become absolutely critical.
I would refer you to anyone familiar with Indymac or Transland. However, even with
these lenders, your broker needs to find out early on the details on the land itelf.
The details regarding the estimated appraisal of the home and land together, seasoning on land equity as well as gifts of land need to be known very early in the process in deciding whether there is any point in continuing now or later.

[Michelle]

Mario,

My first question to you would be what do you consider A- paper. A lot of the dealers I work with feel that A- paper is subprime, yet when your in the financing end we view what most sales centers would call A- as FHA. FHA will now underwrite manufactured homes as long as they are structured property and they are a lot more lenient than most conventional A paper lenders.

I currently am a loan officer for a Dallas based mortgage "banker" and we do have the ability to underwrite FHA mortgages, number one guideline though is they have to be land/home.

I would love to discuss with you how are programs work and yes we do stage fund. If you are interested in finding out more information please feel free to contact me at 214-220-1122.

Michelle Riggs

[Vivienne]

Is there any company's out there that will give my husband a construction loan?

Last year we purchased a 2002 doublewide in a mobile home park in Haysville, KS, and after living here a year and having the lot rent eat us alive we have decided we want to move the home onto a peice of land we have seen.

The plan is: To buy the peice of land, do all the necessary work to get the house set up on it and then pay off whats remaining on our mortgage and have one payment on a 30 year loan.

We have found a company that will come in after the construction loan and pay that off and the remaining balance on the house BUT we have yet to find a company that will give us a loan for the construction side.

My husband does not earn that good money (roughtly $1600 a month), and i do not work as i have just had a baby. His credit is not too bad, but there are some duplicates on his credit report that we are in the process of having removed.

Can anyone help us? we're getting desperate to move our home and get some peace and quiet.

Many thanks