Advice and help please!

[Melissa]

We currently have doublewide on land (parent's land) with a well and septic tank. We are considering getting the land deeded in our name for many reasons. I have several questions though, to get the land deeded in our name we will have to pay my parent's mortgage company enough to release it, probably around 4,000. We want to finance our home as a land/home deal so that we can get the money for the land, any fees that the mortgage company may charge for transferring the land, and a permanet foundation. Is this considered refinancing the home? If so we currently have a home only loan through Navy Federal Credit Union, would we refinance through them? We have no money for a down payment and our credit is not bad but not great either. My husband has his own business so that normally hurts us because he has business debt through his name. He has 3,000.00 dollars in credit card debt due to the business that he trys to pay off monthly but it reoccurs each month too so it always shows up that he has 3,000 in debt, other than that he has had 1 30 day late 2 years ago and 1 over the limit 3 months ago other than that he's clean. How much interest rate should we expect? We only want to finance for 15 years, will that help get a lower rate? Also what fees might the mortgage company currently holding the land charge? Is there anything we are forgetting that we will need to pay for? Please, any help will be greatly appreciated!!

Melissa

[rmurray]

If you upgrade the foundation..you should be able to refi at very good rates..about 5 3/4% for 15 years...Go to the find a lender section of this web site..or talk to a local dealer for a finance referal...This transaction would be considered a purchace of the land not a gift...Let the lenders closing agent handle the paperwork.Thisd can be done...Go for it..

[Melissa]

Thanks so much it is good to know this can be done and I know in the end we will come out a lot better owning the land.
Would this be refinancing with our current mortgage or going with another lender and consider it a new purchase? If it is the latter than what will be done with the current loan for just the home?

Thanks so much
Melissa

PS - Will we be required to pay closing cost and sales tax?

[rmurray]

Most likely another lender..the new loan will payoff the old...You will not need to pay sales tax..there will be some closing costs..which often get added back to the new loan..

[Melissa]

Thanks so much, you have been a great help!! We are setting up a meeting with my parents mortgage company to get thier property appraised and discuss a price for the land our home currently sits on, and then we will go from there.

Melissa