This may be a trend that will expand to the entire mortgage industry: "grossing-up" of retirement benefits no longer allowed!
For years, FannieMae has "allowed" loan originators to "gross-up" Social Security income when filling out 1003's for mortgage applications. And the manufactured home lenders, who finance MH's in parks, have always followed that same guideline. But not any more!
Starting with a major MH lender based in Jacksonville, FL, the new policy is catching on with other banks, and the latest to adopt this guideline is our industry's other major lender headquartered in San Diego.
What is "grossing up"? For example, if a Social Security recipient receives $1,000 per month in SS benefits, then, for the purpose of qualifying the applicant, the loan officer "grosses-up" their net income an extra 25%. Therefore, their net income of $1,000 becomes a "gross" income of $1,250.
FannieMae has allowed this so to create an "even playing field" for loan applicants. Lenders look at the applicant's gross income, not net, when it comes to wage earners and people on salaries. So grossing up income makes the underwriting process a fairer process. "Grossing-up" gives the loan applicant a hypothetical payraise. It's always been allowed by federal regulation, so therefore, is not loan fraud.
Unfortunately, senior citizens, and all receipients of SSI or SDI income, will be at a disadvantage when applying for loans for manufactured homes in parks. This new policy will make it harder to qualify seniors, and that's not good for our industry, in my opinion.
One of the MH lenders is also a MAJOR Fannie/Freddie lender of all types of real estate. It's unclear if this new policy extends to real property loans. My guess is that it will.
Other MAJOR changes coming to the mobile home finance industry daily! Good things, and not so good things.
Stay tuned to my blog.....
Call any time for advice with all phases of manufactured home finance.
Dave Shanklin
800-401-3372, or 916-962-7128
Info@MobileHomeDollars.com
www.MobileBrokers.net
Thursday, August 26, 2010
Tuesday, August 24, 2010
Major Mobile Home Lender Announces Record-Low Interest Rates for Manufactured Homes in Parks
5.99%.....7-YEAR LOAN....
1977 & NEWER MANUFACTURED HOMES IN PARKS
700+ FICO , 10% DOWN MINIMUM
Wow! Fantastic headlines!
If I had read this a few years ago, I would say that the story was a total lie!
But it is reality!
My "main" lender, which is a national credit union, has announced a loan special that is designed for the "lower" priced manufactured homes in parks. This special rate expires Dec. 31, 2010.
Why is this happening? Several new bank have entered the MH chattel finance business. In other words, we have several new lenders offering loans for manufactured and mobile homes in parks. With more lenders entering the field, we are seeing rates drop....and drop....and drop!
Stay tuned in to the blog and find out the latest news. More news coming!
Call any time for advice with your manufactured home transaction.
Dave Shanklin, Loan Agent
MLS ID # 314463
Mobile Brokers Acceptance
Fair Oaks, CA
800-401-3372, or 916-962-7128
1977 & NEWER MANUFACTURED HOMES IN PARKS
700+ FICO , 10% DOWN MINIMUM
Wow! Fantastic headlines!
If I had read this a few years ago, I would say that the story was a total lie!
But it is reality!
My "main" lender, which is a national credit union, has announced a loan special that is designed for the "lower" priced manufactured homes in parks. This special rate expires Dec. 31, 2010.
Why is this happening? Several new bank have entered the MH chattel finance business. In other words, we have several new lenders offering loans for manufactured and mobile homes in parks. With more lenders entering the field, we are seeing rates drop....and drop....and drop!
Stay tuned in to the blog and find out the latest news. More news coming!
Call any time for advice with your manufactured home transaction.
Dave Shanklin, Loan Agent
MLS ID # 314463
Mobile Brokers Acceptance
Fair Oaks, CA
800-401-3372, or 916-962-7128
Monday, August 23, 2010
Mobile Home Loans Still Offered by CalVet, but Guidelines have Changed
CalVet has always been a good provider of financing for manufactured homes in parks. Their rates, terms, and qualifying criteria have been very favorable for years.
Frequently, I have referred veterans to CalVet. Whenever a veteran asks about finacing for veterans, that's what I do. Give them CalVet's phone number.
In the past, their minimum age of a manufactured home has been 20 years, and still is. And their minimum down payment used to be only 3%, and their "floor rate" used to be 6.25%. Fantastic rates and terms that were very competitive, and virtually no bank in CA could ever beat their terms.
Until recently.
Two weeks ago, I placed a call to CalVet, not for the purpose of snooping, to to make sure that I was giving out the right phone number to our veterans.
The person at CalVet that I spoke to told me, without my asking, their NEW minimum terms, which have changed dramatically.
They are still financing purchases of manufactured homes in parks, under 20 years old.
However, they now require a MINIMUM DOWN PAYMENT OF 15%....AND THEIR NEW "FLOOR RATE" IS 7.75%.
This is a big change from their previous guidlines that they've had for so many years.
In the future, whenever a loan applicant who has worn the uniform of our country asks for CalVet or "veterans financing", I will continue to refer them to CalVet. By the way, CalVet's phone number is: 800-952-5626.
Call any time for advice with manufactured home transactions.
800-401-3372
Frequently, I have referred veterans to CalVet. Whenever a veteran asks about finacing for veterans, that's what I do. Give them CalVet's phone number.
In the past, their minimum age of a manufactured home has been 20 years, and still is. And their minimum down payment used to be only 3%, and their "floor rate" used to be 6.25%. Fantastic rates and terms that were very competitive, and virtually no bank in CA could ever beat their terms.
Until recently.
Two weeks ago, I placed a call to CalVet, not for the purpose of snooping, to to make sure that I was giving out the right phone number to our veterans.
The person at CalVet that I spoke to told me, without my asking, their NEW minimum terms, which have changed dramatically.
They are still financing purchases of manufactured homes in parks, under 20 years old.
However, they now require a MINIMUM DOWN PAYMENT OF 15%....AND THEIR NEW "FLOOR RATE" IS 7.75%.
This is a big change from their previous guidlines that they've had for so many years.
In the future, whenever a loan applicant who has worn the uniform of our country asks for CalVet or "veterans financing", I will continue to refer them to CalVet. By the way, CalVet's phone number is: 800-952-5626.
Call any time for advice with manufactured home transactions.
800-401-3372
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