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
Wednesday, July 28, 2010
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.
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.
Tuesday, July 20, 2010
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......
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......
Friday, July 16, 2010
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
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
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
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
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
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
Tuesday, June 22, 2010
Leading provider of manufactured home loans leaves California market indefinitely
They were at one time one of the leading provider of loans for manufactured homes in parks, but now they have departed this field and may never return to California.
Headquartered in Tennessee (where several manufactured home lenders are headquartered), this lender bailed out of lending last year with the intent of re-entering. But a recent management decision has been announced stating that this lender will be offering loans for manufactured homes in parks in most states, but NOT in California.
And why not in CA? Because of losses. Apparently their repossession inventory keeps growing and growing.
This is a set-back for the MH finance industry in CA. They were a good lender, and the only lender that would take self-employed borrowers who couldn't prove their income.
But the news isn't all that bad. We still have three solid lenders for MH's in parks. One lender will go back to 1970 in ageing.
Call me any time to discuss MH lending.
Dave Shanklin
Mobile Brokers Acceptance
8522 Madison Ave
Fair Oaks, CA
1-800-401-3372
Headquartered in Tennessee (where several manufactured home lenders are headquartered), this lender bailed out of lending last year with the intent of re-entering. But a recent management decision has been announced stating that this lender will be offering loans for manufactured homes in parks in most states, but NOT in California.
And why not in CA? Because of losses. Apparently their repossession inventory keeps growing and growing.
This is a set-back for the MH finance industry in CA. They were a good lender, and the only lender that would take self-employed borrowers who couldn't prove their income.
But the news isn't all that bad. We still have three solid lenders for MH's in parks. One lender will go back to 1970 in ageing.
Call me any time to discuss MH lending.
Dave Shanklin
Mobile Brokers Acceptance
8522 Madison Ave
Fair Oaks, CA
1-800-401-3372
Friday, June 18, 2010
Santa Rosa Mobile Home Parks Still Sizzle! Mobile Home Loans Still Available
Sales are still HOT in mobile home parks in Santa Rosa.
One of my top real estate clients tells me that she has been busy.
"I've been busy with mobile homes this summer, a lot busier than last summer," she said. This agent is a top mobile home expert with Prudential California, Rohnert Park, CA. Most of her transactions are in senior parks.
And as far as lending is concerned, I still have three lenders investing in manufactured home communities.
One of my lenders, which resells their loans to other banks, has recently picked up a new "investor bank". This new investor is offering much more flexible terms than my other lenders. For 1976 & newer MH's in parks, they require 15% down, 700+ Fico, but they will amortize up to 25 years. Otherwise, I have only one other lender for 1976-1990 MH's, but their amortization is usually only 15 years. This lengthier amortization results in a lower payment, therefore, qualifying is a little easier.
One of my top real estate clients tells me that she has been busy.
"I've been busy with mobile homes this summer, a lot busier than last summer," she said. This agent is a top mobile home expert with Prudential California, Rohnert Park, CA. Most of her transactions are in senior parks.
And as far as lending is concerned, I still have three lenders investing in manufactured home communities.
One of my lenders, which resells their loans to other banks, has recently picked up a new "investor bank". This new investor is offering much more flexible terms than my other lenders. For 1976 & newer MH's in parks, they require 15% down, 700+ Fico, but they will amortize up to 25 years. Otherwise, I have only one other lender for 1976-1990 MH's, but their amortization is usually only 15 years. This lengthier amortization results in a lower payment, therefore, qualifying is a little easier.
Mobile Home Loan Programs Have Suddenly Become A Little More Flexible
Today, one of my loan reps called saying that they have a new investor for MH's in parks, with better terms.
This new investor, whose identity even I don't know, is offering up to 25-year loans on the early post-Hud homes. In other words, post-Hud homes in parks, 1976 & newer.
Why is this a good thing? The only lender financing MH's from the late 70's thru 1990 usually won't amortize more than 15 years.
Previously, if I had a 1978 doublewide in a park, the best term that I could get would be only 15 years. Now I can get a 25-year loan. This makes qualifying easier, due to a lower payment.
PRE-HUD LENDING STILL AVAILABLE
I still have a pre-1976 MH lender with decent terms. Their terms are: 25% down, 15-year loan @ 9.5% fixed, 740+ Fico.
This new investor, whose identity even I don't know, is offering up to 25-year loans on the early post-Hud homes. In other words, post-Hud homes in parks, 1976 & newer.
Why is this a good thing? The only lender financing MH's from the late 70's thru 1990 usually won't amortize more than 15 years.
Previously, if I had a 1978 doublewide in a park, the best term that I could get would be only 15 years. Now I can get a 25-year loan. This makes qualifying easier, due to a lower payment.
PRE-HUD LENDING STILL AVAILABLE
I still have a pre-1976 MH lender with decent terms. Their terms are: 25% down, 15-year loan @ 9.5% fixed, 740+ Fico.
Wednesday, March 24, 2010
Sacramento Mobile Home Parks Have Many Bargains for Buyers
One of my favorite parks, Cottonwood Estates in south Sacramento, has seen a tremendous drop in prices.
I've always like Cottonwood because of the uniqueness of its garages. Most of the MH's in this community have full garages, and the ones without garages have "garagettes".
There is only one other MH community in the Sacramento area with 100% garages, and that's Diamond K in Roseville.
Diamond K is a senior park, and Cottonwood is a family park.
The last loan that I closed in Cottonwood was for $50,000, with a purcase price of $100,000. And that was four years ago.
Checking the MLS, of the latest listings to hit the market from Cottonwood have asking prices UNDER $20,000. That is an 80% drop in value. (these are probably REO's).
Of course, most buyers will have all-cash at these low prices. But for those who need financing, they're looking at a 15-year loan with a rate of 8.99 (at 5% down).
With a monthly space rent of $600, the total combined housing expense will be only $800/month with a price of $20K and a 95% loan.
Where else can a growing family settle down and OWN a 1400 square foot home w/2-car garage for $800/month??
I've always like Cottonwood because of the uniqueness of its garages. Most of the MH's in this community have full garages, and the ones without garages have "garagettes".
There is only one other MH community in the Sacramento area with 100% garages, and that's Diamond K in Roseville.
Diamond K is a senior park, and Cottonwood is a family park.
The last loan that I closed in Cottonwood was for $50,000, with a purcase price of $100,000. And that was four years ago.
Checking the MLS, of the latest listings to hit the market from Cottonwood have asking prices UNDER $20,000. That is an 80% drop in value. (these are probably REO's).
Of course, most buyers will have all-cash at these low prices. But for those who need financing, they're looking at a 15-year loan with a rate of 8.99 (at 5% down).
With a monthly space rent of $600, the total combined housing expense will be only $800/month with a price of $20K and a 95% loan.
Where else can a growing family settle down and OWN a 1400 square foot home w/2-car garage for $800/month??
Monday, March 22, 2010
Marin Mobile Home Park Sizzles with Buyers: Another "Bidding War" Erupts!!
MARIN VALLEY MOBILE COUNTRY CLUB IS VERY POPULAR FOR SENIORS
With a view of the San Pablo Bay, seniors in Marin County may live comfortably in Marin Valley Mobile Country Club.
This is a very popular senior park in Novato. The park is owned by the city, which is why the space rent is very low ($550 per month). Considering the quality of this park, and the bay view, the monthly lot rent is extremely desirable for fixed-income seniors.
In fact, this one of only two senior parks in all of Marin County that I'm aware of.
Most of the MH's in this park are the original MH's from the early 70's when the park was built. I'm working on a possible loan now for buyers making an offer for a double-wide built in the early 70's.
ANOTHER BIDDING WAR ERUPTS!!
My customers are making an offer and are competing with a few other people submitting offers this weekend for the same home.
Asking prices are pushing $100,000, and according to my appraiser, prices are "ON THE RISE".
With a view of the San Pablo Bay, seniors in Marin County may live comfortably in Marin Valley Mobile Country Club.
This is a very popular senior park in Novato. The park is owned by the city, which is why the space rent is very low ($550 per month). Considering the quality of this park, and the bay view, the monthly lot rent is extremely desirable for fixed-income seniors.
In fact, this one of only two senior parks in all of Marin County that I'm aware of.
Most of the MH's in this park are the original MH's from the early 70's when the park was built. I'm working on a possible loan now for buyers making an offer for a double-wide built in the early 70's.
ANOTHER BIDDING WAR ERUPTS!!
My customers are making an offer and are competing with a few other people submitting offers this weekend for the same home.
Asking prices are pushing $100,000, and according to my appraiser, prices are "ON THE RISE".
Wednesday, March 17, 2010
Another bidding war over Manufactured Home in Sacramento Mobile Home Park
BUYERS APPLY FOR MANUFACTURED HOME MORTGAGE FOR MOBILE HOME IN A PARK
There has been another bidding war over a mobile home in a park in the Sacramento area recently.
The manufactured home community this time is Meadowbrook MHP. This is a desirable family park in the north Sacramento area. The management has very strict guidelines when it comes to approving applications for residency.
The seller of the mobile home received two offers, both contingent upon park approval. One bidder has a recent foreclosure, and the other bidder has stellar credit.
The applicant with the foreclosure got declined by the park, eventhough they were an all-cash buyer, and the applicant with the stellar credit got approved. Their offer is contingent upon park approval AND loan approval, which comes next. (They have 800+ Fico scores, so no worries here).
The subject home is a 1978 Skyline double-wide, asking price $24,500.
The lender will require 15% down. Closing costs will have to be collected through escrow, unless the house appraises higher. If the house appraises higher, then the lender will adjust the LTV for the purpose of financing closing costs.
There has been another bidding war over a mobile home in a park in the Sacramento area recently.
The manufactured home community this time is Meadowbrook MHP. This is a desirable family park in the north Sacramento area. The management has very strict guidelines when it comes to approving applications for residency.
The seller of the mobile home received two offers, both contingent upon park approval. One bidder has a recent foreclosure, and the other bidder has stellar credit.
The applicant with the foreclosure got declined by the park, eventhough they were an all-cash buyer, and the applicant with the stellar credit got approved. Their offer is contingent upon park approval AND loan approval, which comes next. (They have 800+ Fico scores, so no worries here).
The subject home is a 1978 Skyline double-wide, asking price $24,500.
The lender will require 15% down. Closing costs will have to be collected through escrow, unless the house appraises higher. If the house appraises higher, then the lender will adjust the LTV for the purpose of financing closing costs.
Tuesday, March 16, 2010
Mansions Go Modular as Costs, Timeline Lure High-end Buyers
The stigma surrounding modular homes is coming to an end with the introduction of factory-built mansions, as seen in Washington, D.C., and some of its wealthy suburbs.
Buyers are designing their dream homes, paying at least 15 percent less, and seeing the end result in half the time it takes to build a traditional dwelling.
One couple's home was built in two weeks in a factory in Pennsylvania, with the pieces packaged into 21 boxes, trucked to the site in Bethesda, M.D., and assembled box-by-box in just 32 hours.
The traditional home being built next door was still wood beams and empty window frames three months into construction and would not be completed for another nine months.
Architects and manufacturers across the country are joining forces to create customized modular homes in the same styles as long-appreciated traditional homes. Buyers make all of the decisions for the home upfront with computer-driven drafting, which saves money. Fixed schedules, shorter construction loans, cheaper labor, and green features all add to the appeal of luxury prefab homes. Approximately two dozen homes, each valued at over $1 million, have been developed in Washington and pricier suburbs.
Some residents who initially were opposed to the idea of prefab in their traditional neighborhoods are beginning to agree that there is no visual difference between the modular and traditional finished product.
Courtesy Manufactured Housing Institute
From "Mansions Go Modular as Costs, Timeline Lure High-end Buyers"
Washington Post (03/04/10) P. B1; Rein, Lisa
The stigma surrounding modular homes is coming to an end with the introduction of factory-built mansions, as seen in Washington, D.C., and some of its wealthy suburbs.
Buyers are designing their dream homes, paying at least 15 percent less, and seeing the end result in half the time it takes to build a traditional dwelling.
One couple's home was built in two weeks in a factory in Pennsylvania, with the pieces packaged into 21 boxes, trucked to the site in Bethesda, M.D., and assembled box-by-box in just 32 hours.
The traditional home being built next door was still wood beams and empty window frames three months into construction and would not be completed for another nine months.
Architects and manufacturers across the country are joining forces to create customized modular homes in the same styles as long-appreciated traditional homes. Buyers make all of the decisions for the home upfront with computer-driven drafting, which saves money. Fixed schedules, shorter construction loans, cheaper labor, and green features all add to the appeal of luxury prefab homes. Approximately two dozen homes, each valued at over $1 million, have been developed in Washington and pricier suburbs.
Some residents who initially were opposed to the idea of prefab in their traditional neighborhoods are beginning to agree that there is no visual difference between the modular and traditional finished product.
Courtesy Manufactured Housing Institute
From "Mansions Go Modular as Costs, Timeline Lure High-end Buyers"
Washington Post (03/04/10) P. B1; Rein, Lisa
Wednesday, March 10, 2010
Lender agrees with appraiser: Values UP 30% in 2 senior MHP's in Santa Rosa
This is a very optimistic development for all real estate agents in the Santa Rosa area.
According to my appraiser, values of pre-Hud double-wides over 1,000 sq ft in two specific senior parks in Santa Rosa are UP 30% in the last 60 days.
As I reported earlier, the lender was very skeptical about this sudden spike in prices. It caused the appraisal to be reviewed, reviewed, and re-reviewed with a great deal of skepticism.
BREAKING NEWS:
The lender emailed me just now saying: "APPRAISAL CLEARED" !!!!
This is a 1974 Double-Wide in Rancho San Miguel, selling at $50,000. Last December, the same home would have appraised no higher than $35,000.
According to my appraiser, values of pre-Hud double-wides over 1,000 sq ft in two specific senior parks in Santa Rosa are UP 30% in the last 60 days.
As I reported earlier, the lender was very skeptical about this sudden spike in prices. It caused the appraisal to be reviewed, reviewed, and re-reviewed with a great deal of skepticism.
BREAKING NEWS:
The lender emailed me just now saying: "APPRAISAL CLEARED" !!!!
This is a 1974 Double-Wide in Rancho San Miguel, selling at $50,000. Last December, the same home would have appraised no higher than $35,000.
Monday, March 8, 2010
APPRAISER SAYS: VALUES UP 30% IN 2 MHP'S IN SANTA ROSA
Two senior parks in Santa Rosa have seen a sudden spike in prices.
Sequoia Gardens and Rancho San Miguel are hot, hot, hot.
I have an appraisal in the review process. The underwriter has contacted the appraiser questioning the report's assessment of values.
The appraiser reports an increase of 30% in the last two months in these two senior parks. The recent rise in values is noticeable in the recent sales of pre-Hud double-wides over 1,000 square feet.
The underwriter is skeptical about the sudden jump from a floor of $30,000 to a new base of $50,000. But the appraiser is defending these statistics and told the underwriter that it appears not to be an anomaly, but a trend.
In my previous posts, I have reported a sudden uptick in buyers. Recent closed sales prices now reflect this increase in activity.
The appraisal has not yet been cleared by the underwriter. It seems that my lenders are acting like they're walking on very thin ice.
Stay tuned......
Sequoia Gardens and Rancho San Miguel are hot, hot, hot.
I have an appraisal in the review process. The underwriter has contacted the appraiser questioning the report's assessment of values.
The appraiser reports an increase of 30% in the last two months in these two senior parks. The recent rise in values is noticeable in the recent sales of pre-Hud double-wides over 1,000 square feet.
The underwriter is skeptical about the sudden jump from a floor of $30,000 to a new base of $50,000. But the appraiser is defending these statistics and told the underwriter that it appears not to be an anomaly, but a trend.
In my previous posts, I have reported a sudden uptick in buyers. Recent closed sales prices now reflect this increase in activity.
The appraisal has not yet been cleared by the underwriter. It seems that my lenders are acting like they're walking on very thin ice.
Stay tuned......
Friday, February 12, 2010
Late Payments on Mobile Home Loans Increase
ABA CONSUMER CREDIT DELINQUENCY BULLETIN
THIRD QUARTER 2009
Mobile Home Loans & Heloc's see increases in delinquencies
However, other loan categories see decreases in delinquencies
In a recent published article, the American Bankers Association reports that mobile home loan customers are lagging behind on their mortgage payments at a faster rate during the third quarter of 2009.
http://www.post-gazette.com/pg/10008/1026632-28.stm
The ABA reports that mobile home loan delinquencies increased from 3.53% - 3.63% from Q2 to Q3 2009.
However, during the same period, delinquencies in other loan categories decreased. Auto loans, boat loans, personal loans, and RV loans saw an improvement in late-paying customers.
Why is this important to the manufactured home/mobile home finance industry?
My main lender, and the only lender that I have that finances older mobile homes ("pre-Huds") has recently increased their rates.
This rate increase affects purchase loans for mobile homes in parks built between 1970 - 1976.
But the GOOD NEWS is this: the same lender has dropped their rates a slightly for post-Hud MH's (MH's built AFTER June 1976). The rate drop seems to be only .25%.
It's my guess that the increase in delinquencies, as reported by the ABA, may lie primarily in the pre-Hud portion of their portfolio.
Rate changes in the MH chattel finance industry occur as the result of analyzing losses in specific categories, such as older MH's v. newer MH's, and double-wides v. single-wides. The lenders make regular assessments of their portfolio's performance, and decisions to change rates have little to do with the Fannie Mae conforming rate.
AND DON'T FORGET ABOUT THE IRS FIRST-TIME HOME BUYER TAX CREDIT FOR MOBILE HOMES!!
It's still a GREAT time to buy a mobile home. Mobile homes/manufactures homes in parks DO QUALIFY for the tax credit (10% of the purchase price).
THIRD QUARTER 2009
Mobile Home Loans & Heloc's see increases in delinquencies
However, other loan categories see decreases in delinquencies
In a recent published article, the American Bankers Association reports that mobile home loan customers are lagging behind on their mortgage payments at a faster rate during the third quarter of 2009.
http://www.post-gazette.com/pg/10008/1026632-28.stm
The ABA reports that mobile home loan delinquencies increased from 3.53% - 3.63% from Q2 to Q3 2009.
However, during the same period, delinquencies in other loan categories decreased. Auto loans, boat loans, personal loans, and RV loans saw an improvement in late-paying customers.
Why is this important to the manufactured home/mobile home finance industry?
My main lender, and the only lender that I have that finances older mobile homes ("pre-Huds") has recently increased their rates.
This rate increase affects purchase loans for mobile homes in parks built between 1970 - 1976.
But the GOOD NEWS is this: the same lender has dropped their rates a slightly for post-Hud MH's (MH's built AFTER June 1976). The rate drop seems to be only .25%.
It's my guess that the increase in delinquencies, as reported by the ABA, may lie primarily in the pre-Hud portion of their portfolio.
Rate changes in the MH chattel finance industry occur as the result of analyzing losses in specific categories, such as older MH's v. newer MH's, and double-wides v. single-wides. The lenders make regular assessments of their portfolio's performance, and decisions to change rates have little to do with the Fannie Mae conforming rate.
AND DON'T FORGET ABOUT THE IRS FIRST-TIME HOME BUYER TAX CREDIT FOR MOBILE HOMES!!
It's still a GREAT time to buy a mobile home. Mobile homes/manufactures homes in parks DO QUALIFY for the tax credit (10% of the purchase price).
Thursday, February 11, 2010
$2.5 Million Mobile Home in Malibu goes on market
Even during a nasty recession, there are buyers and sellers of million-dollar-plus mobile homes in parks in California.
The latest 7-figure mobile home listing to hit the market is in Point Dume Club, Malibu. This is a leased land park overlooking the ocean and a bird sanctuary.
But, please, don't call it a "trailer" or a "coach".
http://themaliburealestateblog.com/2-5m-mobile-home-for-sale-on-point-dume/
It's too bad we don't have ocean views here in Sacramento.
If you have any doubts that this might not appraise, guess again.
Last June, in a nearby park in Malibu, a mobile home closed escrow at $2,750,000.
And a year earlier, Matthew McCoughaney purchased a seven-figure mobile home in the same park.
http://www.radaronline.com/exclusives/2009/06/world’s-most-expensive-mobile-home-sold-2-275000-wheels-malibu
The agent who handled the sale describes this home as the most affordable way to live in star-studded Malibu. The manuf home, which is a chattel (leased land) has stunning view of the Pacific Ocean, and was an incredible bargain when you consider that Barbra Streisand is one of your neighbors whose "compound" has an estimated value of $25 Mil.
Of course, your question is: is financing available for these homes in these parks?
My main lender says: "Send us one and we'll look at it....." So send me one of these!!
The latest 7-figure mobile home listing to hit the market is in Point Dume Club, Malibu. This is a leased land park overlooking the ocean and a bird sanctuary.
But, please, don't call it a "trailer" or a "coach".
http://themaliburealestateblog.com/2-5m-mobile-home-for-sale-on-point-dume/
It's too bad we don't have ocean views here in Sacramento.
If you have any doubts that this might not appraise, guess again.
Last June, in a nearby park in Malibu, a mobile home closed escrow at $2,750,000.
And a year earlier, Matthew McCoughaney purchased a seven-figure mobile home in the same park.
http://www.radaronline.com/exclusives/2009/06/world’s-most-expensive-mobile-home-sold-2-275000-wheels-malibu
The agent who handled the sale describes this home as the most affordable way to live in star-studded Malibu. The manuf home, which is a chattel (leased land) has stunning view of the Pacific Ocean, and was an incredible bargain when you consider that Barbra Streisand is one of your neighbors whose "compound" has an estimated value of $25 Mil.
Of course, your question is: is financing available for these homes in these parks?
My main lender says: "Send us one and we'll look at it....." So send me one of these!!
Tuesday, February 2, 2010
"I have a 1964 Double-Wide: Can you help me?"
A real estate agent in Vallejo called me today about a new listing that she just took. She has a 1964 mobile home.
Before I could answer her question (the answer is No), the agent said quickly, "It was built in 1964, but it has a new roof with a seven-year roof cert".......or something like that.
Unfortunately, the DOM (date of manufacture) as it shows on the HCD Title Search is the controlling fact here, as far as lenders are concerned.
It is common to find older mobiles from the 1960's and early 70's that have had extensive remodeling, and look "almost new".
The underwriters have a very "cookie cutter" attitude about "ageing" (the age of the home).
Extensive remodeling matters very little to underwriters. Of my three main lenders, only one will consider pre-Hud mobiles. This lender's rules are pretty darn strict: 1970 & newer.
However, there is a bank that is headquartered in Goleta, CA, with a branch in Roseville, that finaces older mobiles in parks that were built in the 1960's. I referred this agent to this lender. I wish that this lender would do business with me directly, but they prefer to deal directly with the customer.
If you have a pre-1970 mobile home in a park, go ahead, PLEASE, call me, or email me.
Frequently, if I can't help you with the loan, then I will refer you to someone who might be able to help.
Before I could answer her question (the answer is No), the agent said quickly, "It was built in 1964, but it has a new roof with a seven-year roof cert".......or something like that.
Unfortunately, the DOM (date of manufacture) as it shows on the HCD Title Search is the controlling fact here, as far as lenders are concerned.
It is common to find older mobiles from the 1960's and early 70's that have had extensive remodeling, and look "almost new".
The underwriters have a very "cookie cutter" attitude about "ageing" (the age of the home).
Extensive remodeling matters very little to underwriters. Of my three main lenders, only one will consider pre-Hud mobiles. This lender's rules are pretty darn strict: 1970 & newer.
However, there is a bank that is headquartered in Goleta, CA, with a branch in Roseville, that finaces older mobiles in parks that were built in the 1960's. I referred this agent to this lender. I wish that this lender would do business with me directly, but they prefer to deal directly with the customer.
If you have a pre-1970 mobile home in a park, go ahead, PLEASE, call me, or email me.
Frequently, if I can't help you with the loan, then I will refer you to someone who might be able to help.
Thursday, January 14, 2010
"Bidding War" over a mobile home. Wow! The market is heating up this month!!
Today, I received a second loan app for the same manuf home in a park here in the Sac area.
This hasn't happened since 2005, or 2006: multiple offers pouring in for the same mobile home.
The market for mobile homes is heating up, folks!! People are taking advantage of the very low prices that we have in most parks in the Sacramento area. Many are paying all cash, but many need financing. Rates are still good, and down payment requirements are 5% or more, depending on the age of the mh.
Stay tuned......
This hasn't happened since 2005, or 2006: multiple offers pouring in for the same mobile home.
The market for mobile homes is heating up, folks!! People are taking advantage of the very low prices that we have in most parks in the Sacramento area. Many are paying all cash, but many need financing. Rates are still good, and down payment requirements are 5% or more, depending on the age of the mh.
Stay tuned......
Wednesday, January 13, 2010
Sales in MH Parks "Come Back to Life" in Sac, Wine Country
I've noticed a resurgence in sales in certain parks in the Sacramento area, and in Napa.
In the last week, Sunset MHP in White Rock Rd in El Dorado Hills, CA has seen an uptick in activity. Two "high end" homes in that park have serious buyers with offers pending.
The same thing is happening with a few parks in wine country, specifically Yountville. I've got a single-wide in escrow at about $59,000, and a serious buyer looking at a one-year old multi-section home priced at $279,000, but the pending offer will be substantially less than asking price.
The really good news is that many of the potential buyers calling me are homeowners who are NOT in a short sale or foreclosure situation, whose SFR is in escrow, and actually have some funds left over for a down payment on a h0me in a park. This hasn't happened since the foreclosure tidal wave hit about four years ago.
Stay tuned....
In the last week, Sunset MHP in White Rock Rd in El Dorado Hills, CA has seen an uptick in activity. Two "high end" homes in that park have serious buyers with offers pending.
The same thing is happening with a few parks in wine country, specifically Yountville. I've got a single-wide in escrow at about $59,000, and a serious buyer looking at a one-year old multi-section home priced at $279,000, but the pending offer will be substantially less than asking price.
The really good news is that many of the potential buyers calling me are homeowners who are NOT in a short sale or foreclosure situation, whose SFR is in escrow, and actually have some funds left over for a down payment on a h0me in a park. This hasn't happened since the foreclosure tidal wave hit about four years ago.
Stay tuned....
Monday, January 11, 2010
Valle Vista in Santa Rosa: Nice land/home park, but hardly no lenders
Today, I received another call from a real estate agent with a buyer interested in Valle Vista in Santa Rosa. Valle Vista is a "land/home" community. It's an HOA, 100% manufactured homes, each with owned lot. All homeowners own their own home and lot, hence the term "land/home", vs. "home only".
The trouble with getting financing in Valle Vista is that most of the homes in this community are the original homes when the park was developed in the early 70's. "Pre-hud" homes is what they're called by people in the industry. I have a lender for pre-Hud mobiles from the early 70's, but they are a chattel lender, or "home only", and won't lend on anything with owned land. Furthermore, most of the older mobiles in this community do not have any recorded foundations (433's). There are some local credit unions that loan in Valle Vista, but they require a 433.
It seems ironic to most agents that I have a lender for the older pre-Hud mobiles in parks where you rent the lot, but the same lender won't loan on anything that comes with owned land. They are a niche lender, and they require the mobile home to be in a park on leased land.
The only way that a buyer can obtain financing in Valle Vista is to buy a post-Hud manufactured home with a 433 (recorded foundation). But due to the lot sizes in Valle Vista, which average 3200 sq feet per lot, there is a very short list of lenders. In fact, only one that I am sure of. This lender offers a 20-year loan which re-sets in five years. No 30-year fixed products for Valle Vista at this time, unfortunately. And this is very surprising to many buyers and agents, but due to the "turbulence" in the manufactured home lending arena, that's just the way it is at this time.
The trouble with getting financing in Valle Vista is that most of the homes in this community are the original homes when the park was developed in the early 70's. "Pre-hud" homes is what they're called by people in the industry. I have a lender for pre-Hud mobiles from the early 70's, but they are a chattel lender, or "home only", and won't lend on anything with owned land. Furthermore, most of the older mobiles in this community do not have any recorded foundations (433's). There are some local credit unions that loan in Valle Vista, but they require a 433.
It seems ironic to most agents that I have a lender for the older pre-Hud mobiles in parks where you rent the lot, but the same lender won't loan on anything that comes with owned land. They are a niche lender, and they require the mobile home to be in a park on leased land.
The only way that a buyer can obtain financing in Valle Vista is to buy a post-Hud manufactured home with a 433 (recorded foundation). But due to the lot sizes in Valle Vista, which average 3200 sq feet per lot, there is a very short list of lenders. In fact, only one that I am sure of. This lender offers a 20-year loan which re-sets in five years. No 30-year fixed products for Valle Vista at this time, unfortunately. And this is very surprising to many buyers and agents, but due to the "turbulence" in the manufactured home lending arena, that's just the way it is at this time.
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