@Anonymous wrote:
me and my fiance want to try to get a mobile home.
the asking price is 30k i have a 10k down payment .my score is 631 according to credit.com.
i have a auto loan out now that i only have 3k left to pay off with a 24% intrest rate.
i make around 50k a year work construction so lay offs are in my employment trail.
and we also have a cosigner thats score is around 700 and and make 90k a year
what are the odds
I'd say your odds are fairly good if its a new unit because these are treated more like "personal property" loans - think car loan - than real estate loans. Without going in to a long explaination, mobile homes are considered high risk loans with almost all financing originated through the selling dealer - who gets a commission for placing the loan. There is a cap on this type of loan, I think it's $50k, but they tend to be high interest loans and they are not treated as real estate.
If the mobile home your are looking at is a resale (used) and you are buying it as "real estate" your chances are poor because banks or other traditional financing sources tend to avoid mobile home loans due to the fact that they do NOT increaee in value and that they are "mobile" meaning the land is not included in the sale and they can be moved.
There is actually legislation in Congress right now to treat mobile home finacing more like traditional real estate financing and another bill to modify Dodd-Frank to modify the origination of financing by the original sellers - typically agents of the manufacturer. Neither Bill will pass before the end of the 113th Congress, no time left and little interest in Congress considering other pending issues.
Considering that your auto loan is at 24%, I think you'd be looking at a similar rate on a model home and that should NOT be acceptible to you as an option. Eample: for a $20k loan at 24% for 7 years will cost you just under $500 a month but you'll pay back $41,500 for something that will lose value. In addition to the $500 loan payment, you need to consider the added land lease cost and utilities/taxes.
Other options would include renting until you save more for a down payment and improve your credit score (or) rent with the option to buy with part of your rent going towards the down payment (or) owner financing - a co-signer or co-owner for an actual real estate purchase can also work, especially if you look for fix-it-upers.
Just my 2 cents....
