Home Buying in 93004>Question Details

Jfas, Home Buyer in Ventura, CA

Where to find competative rates for a refinancing a Manufactured home?

Asked by Jfas, Ventura, CA Tue May 21, 2013

Hi,
I've been calling lenders on and off while now (seriously for a few months) and it seems like its the same old story. We can't refinance your manufactured home, period. I'm 30, have an 800 credit score, 20 % L/V ratio, and about 18% Income to debt ratio. I should be the perfect loaner right? Wrong! Can someone please point me in a direction of a competative loan? Maybe I'm dreaming to reduce my 5.370 interest rate.

I have look alot online but I see alot of information from around 2009. Is this still the case?

Thanks everyone for your input.

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Jfas,
Mobile home financing is tough to find let alone competitive rates for it. Have you tried community banks or credit unions? US Bank used to do them, but I'm not sure if they still do.
Your rate may not be that bad at 5.370% for a mobile home. Unlike "Stick built homes" which historically hold or increase their value, mobile homes depreciate. Once you find a lender you may find that your lack the equity you need to be approved or that the new rate would justify the expense of the refinance.
Please don't misunderstand, I'm not demeaning you or mobile homes, these are just the way the industry views them and has for a very long time.
0 votes Thank Flag Link Tue May 21, 2013
First order of biz. Is the MH in a resident owned condo, subdivision or Planned Unit Development and is it fee simple or a co-op? Or is it in a rent/lease park/community? There's a big difference. If it's in a "Resident Owned" community and was built after June 15, 1976 (HUD compliant) there are a number of lenders who will fund it providing it comps.

Values do not depreciate in a resident owned community contrary to what many on this thread have told you. However, if the home you are seeking to purchase is in a rent/lease park/community you can an often do have problems with financing especially if it's a PRE HUD home. You will be putting more down and will pay a higher interest rate regardless of your credit or LTV.

MH's in rent/lease communities can depreciate as the rent increases. However, if the park/community is in a desireable area or in the path of progress you can and usually do realize some level of value and in many cases even appreciation. However, if it's a PRE HUD home it's almost impossible to see any appreaciation at all.
0 votes Thank Flag Link Sun May 26, 2013
Have you considered a home or condo, which would be eligible for much lower rates. Since you are only 30, you would not only save money on interest, but equity would rise quicker on a house or condo than on a manufactured home. In fact, many manufactured homes go down in value over the years.
0 votes Thank Flag Link Tue May 21, 2013
Thanks for the info Dan. That's exactly what has been happening. I've found a few places but they are all higher. I found one that wanted 4k for 4.75 a few months ago, but the numbers didn't work. I will take again at my local credit unions.
0 votes Thank Flag Link Tue May 21, 2013
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