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
Tuesday, June 22, 2010
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
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