Two New Banks Want to Lend $4 Million per Month in Mobile Home Parks

One of my loan reps called me today, saying that his company is "talking" with two new banks who want to lend $4 million per month in mobile home parks.

Now these banks are IN ADDITION to the other new lenders that I have written about recently.

The other new lenders that I have recently mentioned are a credit union in Oregon, and the other is one of the largest banks in the U.S.

The two "new" lenders remain anonymous for now, but I will know their identities pretty soon. These details are kept confidential while negotiations are underway between the company that underwrites and sells the loan, and the actual investors themselves.

The new credit union in Oregon supposedly will be "on-line" next week, and the really good news about this is this credit union will have very competitive rates.

What does all this mean? I interpret these developments as evidence that things are opening up with the manufactured home in-park investors.

With more and more banks in this field, I expect to see much lower rates in the near future. We'll see.

Call any time to discuss manufactured home lending.

1-800-401-3372.

Major Bank Considering Re-Entering Manufactured Home Community Lending

Former Major Lender
May Re-Enter MH Market

One of THEE largest banks in the United States is considering re-entering the mobile home finance business.


Apparently, representatives of this bank have been making phone calls recently to key players in the industry, testing the waters. This bank was favored by most real estate agents several years ago as a provider of MH loans, but they bailed out of the industry about six years ago.

The word is: they will re-activate their wholesale division, then later their retail divison. Wholesale originators will get competitive pricing, I've been told.

Stay tuned......

Major Provider of Manufactured Home Loans No Longer Allowing Seller Credits: Seller concessions instead

To my surprise, I found out the hard way recently that one of my three lenders has, or NEVER has, stopped allowing seller credits. They require seller concessions instead.

In other words, if a mobile home is in escrow at a contract price of $50,000, and there is a $5,000 seller credit for closing costs, then the lender requires that the price be dropped to the actual amount that the seller is receiving. In this case, the price would have to be dropped to $45,000.

The lender wants the contract price to accurately reflect the actual amount that the seller is getting (not adjusting for real estate agent fees).

The reason: I believe that the bank feels that seller credits artificially inflate the true sales price. This bank is a market leader in this niche, and they don't want prices to be artificially inflated.

This will be a trend for other lenders to follow......

Call me any time for advice on mobile home loans: 800-401-3372

New Mobile Home Lender to enter California Market

Rumors are spreading about a credit union in Oregon that wants to take on a major national credit union that has a large market share of MH chattels nationwide.

My loan rep called me a week ago to let me know that he has negotiated a deal with a credit union in Oregon to provide funding for MH chattels (mobile/manufactured homes in parks).

I didn't ask the name of the credit union, but I will soon learn its identity. Their rates/terms sound very competitive.

Stay tuned.....

Call any time for advice:

1-800-401-3372

Riverside Mobile Home Loans

A few years ago, Hemet in Riverside County was a hotspot of mobile home lending. There are an unusually high number of MH parks in Hemet that are land/home communities. In other words, the owner of the home also owns the lot, rather than leasing the lot.

Two communities primarily were on fire with sales: Sierra Dawn I & II.

In both communities, 95% of the MH's are pre-Hud homes, and not on foundations. Therefore, in the current market, totally unfinanceable, with the exception of a local credit union, I believe.

However, I did have a lender financing this type of collateral for many years, but that lender has ceased lending in CA.

Call me any time for advice on MH transactions.

1-800-401-3372

Heat Wave Slows Down Mobile Home Buying

Every year, in the doldrums of July, my mobile home finance "hotline" isn't so hot.

Buyers are staying home and avoiding the triple-digit heat, not looking at mobile home parks.

But this is just a temporary thing. Great bargains await for those who seek them!

Call any time for advice on mobile home loans.

800-401-3372

Mobile Home Loan in Santa Rosa Closing with buyers getting "instant equity" : appraisal came in above purchase price

A relatively new, nine-year-old manufactured home in a park, will have new owners next week. The buyers are getting "instant equity".

The appraisal came in above purchase price.

The appraiser says the home is worth $6,000 MORE than the contract price. The buyers are very pleased, and the loan officer is very pleased.

Contact me any time to discuss MH lending.

800-401-3372