Information needed on chattel, aka Manufactured home mortgages

[SecretAgentWoman]

Chattel mortgages are different than conventional mortgages, because they are for a manufactured home on leased, not owned, property, and are not treated like normal real estate. Banks normally won't touch them, most people settle for whatever dealer financing is handed to them by the seller because they often don't know if they have a choice.

I'm not one of those people. I see lots of advertisements for brokers who deal with chattel loans, but I'm not sure how to start shopping. I was wondering if anyone here had any experience in this area. I'm trying not to get reamed on the interest rate, but I don't have much hope.

[hopen4800]

Hi, I have "double-wide" on property that I own. I hold title on the property but the mobile is treated and licensed as a vehicle and could only be purchased in the way you describe. I later found out that if the mobile-home or modular or manufactured home is on a permanent foundation it becomes "real" property and most lenders treat it as such. I know some are able to get a loan for the manufactured home and the funds to have it put on a foundation all in one. I also heard of a 203k HUD loan (I think) that will provide funding to retro-fit a foundation under a non-qualifying structure. This is not my primary residence, it's not even in my home state but the bank with the stagecoach logo does alot of these loans(like the logo, don't like the bank) I'm sure others do these loans ,too. I am in the process of retro fitting mine with a foundation now and the bank has green-lighted my mort. Thanks

[SecretAgentWoman]

I can't put mine on a permanant foundation, and I don't own land nor plan to. I realy love the mobile home park I am in. So, nothing you said applies to my situation (although I am sure it will be helpful for others).

[sr28b]

1. Minimum 600 credit scores, preferably 650 and above.

2. Maximum DTI (Debt to Income Ratio) = 50%

3. Minimum down payment required for a primary residence is 5 - 10%.

4. Minimum down payment required on 2nd home (Vacation or Investment) = 20%.

5. Loan Terms 5 - 20 years, up to 25 years with land.

6. No out-of pocket closing costs required (unless appraisal is required).

All closing costs can be financed into the loan. LTV is based on before fees.

7. Interest Rates will vary depending on Age of home, Equity, Credit Scores, Single Wide, Double Wide, or if land is involved.

8. Age of Home 1978 or newer. Exceptions are made in California.

9. No Private Mortgage Insurance required & No Pre-Payment Penalties.

10. Debt Consolidation and/or Home Improvements based on equity.

11. How mobile home valuation is derived by 21st Mortgage.

11a. Mobile Home Only*: Value is derived by the lesser of the N.A.D.A. Appraisal Value or Purchase Price of the Mobile Home.

11b. Mobile Home and Land: Certified Land Only Appraisal with improvements (Well, Septic, Detached Garage, etc.) + the valuation in 11a. Home value must be at least 35% of loan amount.

* A certified Mobile Home Appraisal may be considered if the following conditions are met.

All Comps are located within the same park and

All Comps have been sold in the last year.

http://www.21stmortgage.com/web/21stSite.nsf/index?OpenForm

[Knot-fore-sail]

Here are two options I have worked with in the past.

Triad is located in Florida but will work directly with consumers. Click under "services" on the website

http://www.triadfs.com/

Origen is located in Texas and I believe will also work directly with consumers. They actually specialize in Home only loans.

http://www.origenfinancial.com/ofllc.asp?ofllc

[SecretAgentWoman]

Anyone know if NACA will work with these types of mortgages?