Mobile Financing Question

[Anonymous]

Looking at a mobile home in Florida, re-sale, on a lot in a resort type community. It would be used as primary residence, at least 6 month/year, not as rental property.

The agent referred me to a lender in the area that they use. They require 20% down & $500 loan fee.

Did not apply so don't know the APR.

Wondering about options for financing. The $500 fee for a loan of $30k seems high.

[mmts0717]

I am not sure but I just did a loan and it was 1% of the loan charged by my bank.  Originally I was using a mortgage company and they wanted to charge 4% of loan (loan origination fee) and 4% (loan discount fee), which is quite a lot.

I got a Good Faith Estimated  and there was a big difference.

At the bank, I paid about 1500 closing cost

The mortgage company total was about $5600.00

I don't know much about all the fees but the rate and closing cost was much less with my bank than with a mortgage company.

[mmts0717]

looked through a booklet provided "Settlement cost and helpful information" and this is what it says:

Loan oringation: This fee is usually known as a loan origination fee but sometimes is called a "point" or "points". It covers the lender's administrative costs in processing the loan.  Often expressed as a percentage of the loan, the fee will vary among lenders.  Generally, the buyer pays the fee, unless otherwise negotiated.

Hope this helps you.

So if you were asked to pay 500.  This would be between 1-2% of the loan amount they this lender requires to do the loan. 

[ShanetheMortgageMan]

Is the mobile home a singlewide or doublewide, would you own the lot, and when was it built?  If it's before 1976, a singlewide, and/or the lot is seperate from the mobile home (such as a lease), financing options are much more limited as it's treated similarly to a vehicle loan.

Message Edited by ShanetheMortgageMan on 01-24-2008 02:51 AM

[Anonymous]

mmts0717-

Thanks for the info. In which state did you purchase? Is this your primary residence? Leased lot or your property? Is it a standard mortgage loan?

Thanks

Shane-

Singlewide, built 2000, leased lot in RV/Resort type 55+ community.

Yes, I thought this financing should be similar to a vehicle, so I'm questioning the origination  fee though I'd guess this is a niche financing product.. 

What are the normal terms, in years, of this type of financing? Usual APR?

I'd want to reduce the upfront costs. 20% down is OK. Can the sales taxes & loan fee be rolled into the loan? I'd try to have seller pay the taxes and loan fees anyway.

There seem to be quite a lot of snowbird 2nd home properties for sale now and asking prices have been going down.

Thanks

[mmts0717]

I purchased in Louisiana, this is my primary resident, a double wide, own the lot and it is a standard mortgage. 

Originally when I went to the dealership (new home), they referred me to the mortgage company, after a lot of hassle, I decided to talk to my bank and definitely got a better deal in all aspects from the interest rate to the closing cost.

Shane seems to be the mortgage expext here, so he might have so insight to better help you.

I was just passing along the information that I had since I just closed this week on the loan.

Good luck

[ShanetheMortgageMan]

Anderson, that is the reason for the big down payment and probably not-so-great rate.  Realize that it's the same amount of work for them to do a $30k loan or $75k loan, which I'm sure their fee of $500 is pretty standard... it's not out of line in my opinion.  These loans are unique to each lender, I've seen interest rates vary from 8-18%, and generally are 20 years or less.  You would have to ask the lender if the taxes & lender fee can be included in the loan, but my gut says no since they are requiring 20% down they won't increase it to include any fees.

[Anonymous]

Shane- Thanks

Yep, you are correct. Checked with the lender. Have not decided yet if I'll go thru with it. I believe I'm locked out of a traditional mtg until my FC/PR falls off in a year.

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ShanetheMortgageMan wrote:

Anderson, that is the reason for the big down payment and probably not-so-great rate.  Realize that it's the same amount of work for them to do a $30k loan or $75k loan, which I'm sure their fee of $500 is pretty standard... it's not out of line in my opinion.  These loans are unique to each lender, I've seen interest rates vary from 8-18%, and generally are 20 years or less.  You would have to ask the lender if the taxes & lender fee can be included in the loan, but my gut says no since they are requiring 20% down they won't increase it to include any fees.

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mmts0717-

Thanks for the info & Congrats on getting your new mtg & home!

[ShanetheMortgageMan]

If you buy a doublewide or larger manufactured home, on it's own lot, and if it's built after 1976... then you can either choose FHA financing or conforming financing and qualify for good terms.  Fees are going to be much more than $500 though.