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question about mobile/manufactured homes

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question about mobile/manufactured homes

I've been looking into FHA loans lately, and have a question related (but not necessarily FHA-specific). I want to buy a plot of land (1 acre max), pay that off, and then buy a mobile/manufactured home to put on top that land. My question is, would I be able to get a loan for land and then an FHA loan for the home? Or have to do FHA and do both at the same time? Would I be disqualified from FHA if I used a loan to purchase land?

 

SO, two parts to this:

A- what am I able to do, loan-wise, and

B- what do you recommend I do... I was planning to pay off the land first and then buy the mobile home, so my credit would be more favorable, and so I wouldn't have two payments to make. But would it make more sense to do them both at the same time? Going back to A, do I even have an option?

 

Much appreciated,

maus

1 REPLY 1
Established Contributor

Re: question about mobile/manufactured homes

Good question.   It's six in one hand and a half dozen in the other more or less....but it depends upon your personal situation for sure.

 

For example, some mfg home sellers will have land/building packages, so do your research on that front to be sure.  Some will, some won't, your actual results may vary. 

 

If there is a piece of land that absolutely meets your 'fancy' and covers your needs that you want to purchase then by all means go ahead and purchase it.   This is where you may or may not have difficulty financing or not because how much is an undeveloped piece of land really worth?   Well, whatever you want to pay for it actually, but try 'splaining that to your banker or LO because a mortgage loan (especially if it's FHA, USDA, VA or conventional) needs a building permanently affixed to the land in order to be determined sufficient colatteral for your loan program.   Naturally, this will require some additional tasks to be completed---such as well water and septic system installation--something your MFG dealer ought to be able to provide or help you with which may or may not be included in your 'package' price.   

 

Again, your actual results may vary, so be sure to look closely into the details for your deal with whomever you are working and dealing with as it is always the things you don't know about that come back to bite you when you become aware of what's necessary and required and these deals are often typical of one party stating "it's not my job/responsibility" to educate/provide you with these deets.  SO the fact you are doing homework here and now is definitely a good thing. 

 

Fast forward to already owning or having financed your parcel that has all the easements (access to a main / public road) and maintenance agreements (should it not be public) on record.    You may very well be able to "roll in" the cost of land or any equity you have when it comes time to secure your permanent financing, but it certainly depends on the final appraised value of the completed building and land combined...

 

 

Whew, I imagine there's more to add and the other experts here will do so, but this is a reasonably good start for you....

 

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Licensed NC Mortgage Loan Originator
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