Q: Mr. Frost, I have been trying to obtain financing on acreage with an older singlewide on it. The home is 29 years old, there is a 3 car garage and a carport on it, as well as fencing for horses. I am purchasing it by myself, I'm self employed, and have a budget of around $80,000. I've contacted banks, mortgage brokers, mobile home financing companies, and all sorts of referrals, on line and over the phone. HELP! Why is this so difficult? My credit is spotless, but the score is lowered because of a medical collection. Where do you suggest that I turn now? I may have access to a gift for the down payment-if necessary, but I would rather not use this. I want acreage for the horses, and it seems that everything in my budget is an older mobile home. I need to make a purchase within the next 30 days, and value your advice.
I look forward to hearing from you-and thank you for taking the time to help me.
Jane
A: Dear Jane,
As you may have already discovered you have a difficult transaction to contend with. As I see it you have two large obstacles to overcome. First and foremost, it is more difficult to find financing for mobile homes in general. There are a few options for newer doublewide homes but lenders appetite for financing older singlewides is almost non-existent. In your message you didn’t mention the number of acres that you are looking into purchasing however most lenders will balk at the transaction if there is more than 10 acres or if the value of acreage is more than 40% of the of the entire purchase. As long as your collection account is paid credit should not be an issue. A local community bank or a private lender appears to be your only option. If you do find a lender, you should be prepared to put down about 50% of the purchase price. If putting down half is not a viable option for you I would suggest that you look for a newer doublewide or a stick built home with the acreage that you desire. It’s much easier to lend on acreage than it is to lend on a singlewide. I wish you the best of luck.
Jerry
