Loans for Doublewides

Manufactured Housing is alive and kicking. Loans for Doublewides are here. In places like Florida, Future homeowners are once again able to enjoy the many benefits of the cost effective housing a nice doublewide can provide.

I have been lending myself to lending institutions for many years now and I am happy to say that I am seeing a resurgence in one certain area of financing. That resurgence seems to be happening with manufactured housing. The reason I say ths is not based on any recent study I have read but rather I am basing my opinion on my little corner of the world which is mortgage lending.

About two years ago I recall a bad series of months when many of the banks completely backed out of doing mortgages on manufactured housing or "doublewides." I recall one loan inquiry in which I called 8 banks all of which no longer had the program. Mortgages on Doublewides, provided the Federal Housing Authority (FHA) are a very important niche that is still around.These types of homes typically are a little riskier to lend on because they are prefabricated and placed in mostly rural areas. Rural is not an insult , in this case it just means that these homes can be less marketable if they are repossessed.

Singles Wides and Double Wides are usually categorized in one of two ways. Either the home is attached to the ground on a lot or it is still , essentially a car on wheels that sits in a park or a co-op. Up until recently I couldn't help the second category of inquiry. Many lenders were afraid that their financing will up and go to Canada or something.

The first scenario is still covered by FHA at excellent rates. Assume around mid 5% for a 30 year fixed. The loans in which the customer sits in a park or a co-op will end up in the range of 7% - 17%. In the first scenario the mortgage person will receive a rebate from his/her lender. In the second scenario the customer is charged points directly,

These are all reason why I try to advise my clients to take the scenario where you own the land. The rate is much lower and the client may be in a position to use the equity of the land to help the terms of the deal.

Typically scenarios where the customer is parked in a park will have a monthly rent that is charged by the park ranger. Many 55 and over communities are set up this way. And in some parks there are a bunch of nice ammenities that come along with that HOA fee. e.g social events