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).
Friday, February 12, 2010
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.
Friday, December 18, 2009
FHA Loans in parks: the rumors continue
For years, I've been hearing about the introduction of FHA loans in mobile home parks. For many decades, FHA loans have been available for manufactured homes with real property, but not for "MH chattels" in parks.
My lender rep tells me that FHA is willing to insure this type of loan. However, so far no lender is willing to begin underwriting them.
However, the same loan has been telling me for over a year that the investors he works for are becoming "increasing interested" in underwriting FHA loans for manufactured homes in parks. And he says that one of the lender's subsidiaries is an FHA lender, and the parent corporation bought the company for that reason.
Yesterday, one of my real estate agent clients emailed me a form pertaining to FHA financing for manufactured homes in parks. Where she got this, I didn't ask. My point is: the rumors keep surfacing......
FHA products for manufactured homes in parks should make financing much easier for people trying to buy in family parks, for example, who usually have little or nothing down. Furthermore, I believe a thre-year-old mortgage default will be okay with FHA, but NOT okay with any of my current lenders.
Stay tuned......
My lender rep tells me that FHA is willing to insure this type of loan. However, so far no lender is willing to begin underwriting them.
However, the same loan has been telling me for over a year that the investors he works for are becoming "increasing interested" in underwriting FHA loans for manufactured homes in parks. And he says that one of the lender's subsidiaries is an FHA lender, and the parent corporation bought the company for that reason.
Yesterday, one of my real estate agent clients emailed me a form pertaining to FHA financing for manufactured homes in parks. Where she got this, I didn't ask. My point is: the rumors keep surfacing......
FHA products for manufactured homes in parks should make financing much easier for people trying to buy in family parks, for example, who usually have little or nothing down. Furthermore, I believe a thre-year-old mortgage default will be okay with FHA, but NOT okay with any of my current lenders.
Stay tuned......
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