Mobile Home Lenders Start "Rate War"; Rates Drop to 4.5% and 5.99% for Mobile Homes and Manufactured Homes in Parks

Our industry's major lender based in Jacksonville, FL has announced its biggest single-day rate cut in that company’s 50-year history. A reduction of .75% for all categories of loan products for MH’s in parks to take effect immediately.

New "floor rate" , with 20% down, is a 10-year loan @ 5.99% fixed.

This news came out barely two weeks after our industry’s other lender, CU Factory Built, rolled out its new “step-up” loan with very low rates starting at 4.5%.

This is a typical reaction among our MH chattel lenders who are competing for top-tier borrowers (which means borrowers with 700+ credit scores). Without having seen rate sheets, it cannot yet be confirmed if this rate reduction from Triad will affect all tiers of their loan products. However, the source for this story did indicate that the .75% reduction will be “across the board”.

We now have very attractive rates to offer to manufactured home buyers moving into parks. Four years ago, the “floor rate” with our biggest lender was at 10.5%. We can now potentially offer rates less than half what they used to be.

After years of sour news, this is something that should be told to all buyers of manufactured homes in parks. Check back frequently for the latest in this “rate war”.

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Dave Shanklin
Mobile Brokers Acceptance
Fair Oaks, CA
NMLS # 314463
800-401-3372
916-962-7128

Major Mobile Home Lender Lowers Rates to 4.5% for Used and New Mobile & Manufactured Homes in Parks

Our industry's major lender out of Seattle, CU Factory Built Lending, has again rolled out a new loan product with eye-popping low rates for manufactured homes in leased land communities.

Their new floor rate is 4.5%. This is a "step-up loan", not an adjustable rate mortgage. The low start rate is locked in for the first five years, then "steps up" to the higher rate for the remiaining term at 7.25% fixed. This lender's loan products are always fully amortized. The terms are very flexible and not too difficult to qualify for. They don't accept applicants with any mortgage defaults or any mortgage delinquencies in their background.

For example, a used 1980 multi-section in-park home would qualify with 10% down. Assuming top tier credit, the applicant can get a 20-year loan at 4.75% for the first five years, and 7.5% for the remining 15 years. With 20% down, the start rate would be 4.5%, stepping up to 7.25%.

Better yet, for a 10-year loan, with 20% down, the first five years will be fixed at 4.5%, and the remaining years fixed at 6.25%. The borrower may pay the monthly based on the higher rate, resulting in an accelerated principal reduction, and saving thousands in interest.

This new "One Step Program" loan product is available in all states. Cash-outs and refinances are also eligible, case-by-case. In CA, the older "pre-Huds" are eligible, but with a 1% rate adder.

This will make financing new and used MH chattels much easier. Our industry needs a good shot in the arm.