This is a segment of loans that is currently becoming very unpopular with many lenders. Many banks have closed their manufactured loan programs because of poor demand on Wall Street. I would say in the last two months I can think of ten banks that have completely stopped lending on this type of loan. The reason why banks are no longer going after this business is that they monitor the performance of their portfolios. They will literally make charts and graphs as to how well customers are consistantly paying their mortgages. In recent months they have noticed a spike in foreclosures within this segment of mortgages. Manufactured Homes are no longer available under the USDA government sponsored 100% program.
The good news is that I have three sources that will still lend on this type of housing. Lets stop talking about what we can't do and talk about what we can do:
96.5% financing
primary residence, second homes, investment properties
The home must be attached to the ground
Loans $75,000 and higher
the home itself can be no older than 15 years old (Doublewides)
There are a few caveats or overlays that have been placed by my two current sources.
Source A:
Requires Manufactured housing affixed to the ground with a full foundation. A home that is not attached to the ground is a car loan. I can refer you to a source for that
The home should be less than 15 years old and needs to be a doublewide
The borrower needs at least a 580 credit score with three active tradelines paid on time for a new home purchase and 600 for a refi. If we are using alternate credit such as rent,phone and electric to qualify that is a stretch but I will look at it
Very important. This source has an overlay that the rent has to be proven with 12 months cancelled checks or a verification of rent from a management company
The total debt ratio cannot be higher than 45%
Like any loan we will need to prove a consistant two years job history verifying income with adequate cash to close and reserves. Every scenario is different
Source B:
Requires Manufactured housing affixed to the ground with a full foundation. A home that is not attached to the ground is a car loan. I can refer you to a source for that
The home should be less than 15 years old and needs to be a doublewide
The borrower needs at least a 580 credit score with three active tradelines paid on time. If we are using rent,phone and electric that is a stretch
The total debt ratio cannot be higher than 45%
Very Important:If the home was recently purchased by an investor, that investor needs to be on title for a full one year. the FHA guideline is 90 days but this is an overlay from source B
Like any loan we will need to prove a consistant two years job history verifying income with adequate cash to close and reserves. Every scenario is different
My Personal Guarantee: Absolute Red Carpet Treatment
