Are there any banks that will lend money for a mobile home w/land purchase without requiring 25% down?We were going to list our mobile home w/ 5 acres here in the horse farm country of west Ocala Fl. My uncle is our neighbor, his 5 acres bordering ours. He does not want neighbors, so he asked us not to list it , and agreed to buy it. He and his wife have excellent credit. However, the loan officer advised him... |
Based on what the mortgage loan officer told you, might also be the case in most other lending institutions. You might consider seeking a loan at other mortgage lenders to make sure this is the case.
If the down payment is a problem, your uncle might consider placing his current 5 acres as collateral, called a wrap around mortgage loan. This would give the mortgage lender more collateral and might be sufficient to make this transaction go. This would cause the loan to value to be lower.
If your uncle would decide to do this it would be to his benefit if his current property has no mortgage loan and would be in a free and clear condition.
I don't think the mobile home would hold much value as they would depreciate in value as oppose to appreciate, the mortgage lender would consider this as a land purchase.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
The loan officer is correct. Lenders have long stopped financing used mobile homes with land. Mobile homes themselves depreciate rather than sustaining value. No lender wants collateral which does not hold its value. Sorry.
