Modular Home Loan?

Mellochick · ‎06-08-2014

Does anyone know of any lenders who deal with foreclosed modular home loans with bad credit? I have a judgement that I can pay off but leaves me with little down payment. Scores are all around 550-580. The modular we want is a foreclosure and we could probably get for around $40,000-$50,000. we are having trouble finding a lender who will work with this! HELP!

StartingOver10 · ‎06-08-2014

@Mellochick wrote:
Does anyone know of any lenders who deal with foreclosed modular home loans with bad credit? I have a judgement that I can pay off but leaves me with little down payment. Scores are all around 550-580. The modular we want is a foreclosure and we could probably get for around $40,000-$50,000. we are having trouble finding a lender who will work with this! HELP!

Does the modular home come with land? In other words, is land part of the deal or is there lot rent?

Mellochick · ‎06-08-2014

Yes the modular is on a fixed concrete foundation and the .25 acres comes with it. Has only had one owner but I can't find a lender who will give me a loan for under $50,000 or one for a modular either. Any ideas???

StartingOver10 · ‎06-08-2014

@Mellochick wrote:
Yes the modular is on a fixed concrete foundation and the .25 acres comes with it. Has only had one owner but I can't find a lender who will give me a loan for under $50,000 or one for a modular either. Any ideas???

$50k floor is a common minimum. Chase does small loans. but with your scores I don't think they will be an option. You will need to check out private lenders. Go to a mortgage banker or call your local community banks or regional banks. You will probably have to have a much larger down payment or take the time to increase your score. Have you been to the rebuilding section yet on this site? It is worth your time to check it out.

pipeguy · ‎06-09-2014

@Mellochick wrote:
Does anyone know of any lenders who deal with foreclosed modular home loans with bad credit? I have a judgement that I can pay off but leaves me with little down payment. Scores are all around 550-580. The modular we want is a foreclosure and we could probably get for around $40,000-$50,000. we are having trouble finding a lender who will work with this! HELP!

By modular if you mean "mobile" these are treated by the banking business as "personal loans" rather than traditional mortgages. There is a bill in Congress right now to allow this type of home to be treated as a classic mortgage, but it's not getting much traction. Generally the concern with mobile homes (pre-fab delivered on wheels) are that most do NOT increase in value and most are not placed on owned land. Typical financing for mobile homes are through dealer networks and they are treated like car loans with longer terms and much higher APR's.

Additional info: http://www.bankrate.com/brm/news/mtg/19990722.asp

Mellochick · ‎06-09-2014

This loan is NOT for a mobile home or manufactered home. The home is a modular meaning is was built in a factor in pieces then delivered and put together on a concrete foundation. This one in particular actually has two additions to make it feel less like a fabricated house. We do have a family member willing to gift us up to 20% so we do have a good amount down. I was just wondering if any of you knew of any lenders in particular that would help with this type of loan?

StartingOver10 · ‎06-09-2014

That is exactly why I asked you about the land. Where I am nearly 100% of the homes are on slab foundations and we do not distinguish "modular home" unless it is a 'mobil home'. So it could be a miscommunication with the LO.

The fact that it is built on a lot with slab foundation makes it eligible for a regular mortgage.

pipeguy · ‎06-09-2014

@StartingOver10 wrote:
That is exactly why I asked you about the land. Where I am nearly 100% of the homes are on slab foundations and we do not distinguish "modular home" unless it is a 'mobil home'. So it could be a miscommunication with the LO.

The fact that it is built on a lot with slab foundation makes it eligible for a regular mortgage.

+1 100% agree - this is the same as any other mortgage, although I assume with your posted scores its not going to be any easy approval process. The more you can put down against the appraised value will help.

fishbjc · ‎06-10-2014

Check around about having the judgment 'vacated' after it's been paid.

That may give you a much needed boost.

Mellochick · ‎06-10-2014

I talked to the company today who owns my judgement. Told me the payoff date, said would take 10 days to process, then I will receive documentation that it has been paid in full so I can have the issues deleted. The moment I have that documenation in my hand, then the lender will completely approve and surely having the judgement and the same collection account they have on my account as well both come off and thats like $5k of debt gone and a judgement status show paid in full so surely it should make my score jump substantially! It's just going to take like 30-60 days for it to happen.