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5 Biggest TRUTHS About Manufactured (Mobile) Home Loans! - YouTube
Channel: Kristina Smallhorn
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more and more you've been asking me how
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it is that you can finance
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a manufactured home today we're going to
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be talking to paul baranko
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a mortgage lender that lends money out
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for manufactured homes
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answering all your burning questions so
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let's go ahead and get started
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[Music]
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if you've been doing your research
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you've probably read that some mortgages
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are only for about 20 years when it
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comes to manufactured homes but you can
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finance them for over 30 years
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paul explains this now my name is paul
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burenko i'm with first phase mortgage
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and uh we do we handle mortgage
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financing for mobile homes that are
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already
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in place so some manufacturer home
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companies have been saying that you can
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only finance a manufactured home
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for 20 years is that true
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no it's not a 30-year fixed
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no prepayment penalty no balloon fannie
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mae or
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fha home or a va loan on a mobile home
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can you do a rural development loan on
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a manufactured home they came out with
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new guidelines on rural development
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about two years ago where they're doing
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it but they have a really really
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hard criteria and lenders don't
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like to fool with it because it's hard
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to get them approved but they can be
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approved
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but they must be brand new homes what is
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the age requirement when it comes to a
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manufactured home
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is there a cutoff date when a
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manufactured home is actually too old to
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get a loan on
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uh there's it's like it's june 15 1976
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it has to be after that
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date of manufacture to be to qualify and
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that's because
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everything with hud was approved after
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1976 anything prior to 1976 is
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considered a trailer right
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that's correct it wasn't labeled it
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wasn't documented
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there's a website called ibts.org
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and that's where you can go in and
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verify oh on a mobile home
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uh what their tags are their
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registration and
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whether where was initially moved and
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set up at where can somebody find the
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tags on their manufactured home if
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they're unsure
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uh there's gonna be two sets you gotta
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find
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one is under the kitchen sink when you
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open up the cabinet door there's a big
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label that's the uh the other is on the
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chassis or the frame
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uh when they set up the manufacture at
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home they remove the wheels off of it
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that's what makes it stationary
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and on there there should be the tags uh
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glued onto the frame and that's where
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they pull those numbers from
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not all home loans are created equal and
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when it comes to size
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does size really matter for the type of
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loan you be qualified for
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a single wide you can do it if you're
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doing an fha loan
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if you're not doing fha loan well double
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wide triple wide you can do those
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on fannie mae or on fha okay but on a
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single watt it's just fha and that
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single wad has to have been
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after 1976. is there a big difference
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between
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fannie mae fha is there going to be a
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big difference in like
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interest rates or requirements for the
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person to get approved for those
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specific loans
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uh let me tell you the pluses and
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minuses a lot of factors are looked at
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uh debt to income credit score uh down
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payment
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on a government loan you always have an
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upfront fee you're paying
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like on fha it's 1.75 and you're always
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going to pay
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pmi of 0.85 percent that's on there for
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the life of the loan
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but the interest rate on fha loans a lot
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lower than a conventional loan
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if you have 760 credit scores the fha
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rates going to be lower
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now fha is not as
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critical on credit scores as where your
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interest rate is
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on a conventional loan you can run
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anywhere from almost a one and a half to
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two percent
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range depending on where your credit
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score is so a lot of people with a 680
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or lower credit
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score a lot of times fha is definitely
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your best deal
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if it's above a 680 that's when you kind
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of start comparing both
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so how much down payment would you need
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for a manufactured home
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uh on fha it's three and a half percent
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okay
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conventional it's five percent when
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someone's getting a
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manufactured home is there any fees uh
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associated with it prior to actually
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getting the loan before
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hand is there an application fee or
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anything like that no
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there's a and if anybody's doing a
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mortgage and somebody charge the
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application fee upfront then
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you can't do that that's against
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compliance
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uh people will charge junk fees
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application and processing fees at the
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closing we don't do any of that
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uh the only thing you normally is going
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to pay is an underwriting fee up front
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the only upfront fees on a mortgage
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that you're allowed to collect for is a
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credit report fee and it has to be
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exactly for what the credit
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bureau charged you and the appraisal fee
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and you pay that fee direct to the
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person now if someone wanted to use
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their uh
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401k or ira for a down payment could
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they do that
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in order to get a loan yes and the good
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thing
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i'm glad you brought that up because you
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don't actually have to
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when i say take the money out pay the
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big penalty to do that with
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most 401ks or iras have an emergency
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clause in them one of the emergencies is
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building a home
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so with that you can actually borrow the
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money against your 401k
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the great thing is is you paying
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yourself back when you pay that
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money back on the 401k loan and we do
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not have to count that in the debt to
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income ratio
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because you're all paying yourself back
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so yes you can borrow or pull out of a
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ira or a 401k or you can get gifts from
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a family member
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how much of a gift can you get from a
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family member
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you can get enough to cover uh the whole
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down payment or closing costs too
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and prepaid you just have to document it
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you get a document
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with one month back statement that they
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had the available funds
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give to you and then you got to document
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the transfer
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well that's good to know i didn't know
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that yeah
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and what the gift letter means is that
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you don't have to the person that's
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getting the money is not uh doesn't have
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to return that money to the person that
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gave it to them correct
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that's absolutely right it saves the
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relationship and it states that the
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money doesn't have to be
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paid back that it is a gift and that
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they give them that money
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because when people put a down payment
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down or have to pay closing costs of
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prepaids
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we have to source and seize in that
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money we have to get two months bank
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statements or we have to prove where it
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came from
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that's why that gift letter and that
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tracking so important
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really important you can't pull money
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out from underneath your bed
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that's right that's right it's happened
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they call that the old mattress money
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yeah the mattress money can't do that
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when you're shopping for interest rates
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you're going to notice there is a big
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difference between
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regular stick built homes module homes
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and manufactured homes
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so what is the difference between
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manufactured homes and regular stick
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built homes
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how much more are you going to pay
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because you're buying a manufactured
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home
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a regular stick belt home is a home you
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buy that we see that's either on pair of
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beams or on slab
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modular home is a home that's built at a
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factory walls ceiling floors
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they bring it over to the lot you want
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to put it on they put all the plumbing
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and electrical and then they put it
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together almost like a puzzle that's a
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modular home
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a modular and a stick built home as far
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as financing are concerned
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are done exactly the same way so modular
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stick built same thing
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uh manufactured is different i mean it's
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brought over their wheels
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they have to set it up and set the base
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up it's normally a vector system they'll
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set it up on
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and uh make sure that's right we have to
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get an engineer out there to go make
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sure structurally it's sound
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when we're doing the loan so there's a
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lot more movement pieces in the
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manufactured home
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so what is the debt to income ratio for
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these particular loans um let me explain
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something we have a thing called du
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direct underwriter
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conventional which is fannie and freddie
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va as well as fha we've run it through
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that
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automatic underwriting system okay now
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the actual guideline states
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that if you get an approved eligible
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through that system you're okay you can
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do the loan
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it doesn't give you an actual debt to
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income ratio per se
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uh fannie and freddie most of the time
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it needs to be between 41 and 43
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and what i mean by that is the cost
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of i mean the monthly note for your
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purchase of your home plus the monthly
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note of all your debts
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can exceed 41 to 43 of your income
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okay um you can get it approved higher
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than that but it just depends on credit
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score and how many months of reserves
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you have
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fhas a lot easier to get approved i've
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gotten them approved up to 55
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debt to income even though the
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guidelines says 41.
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okay but as long as i've got that
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approved eligible you're okay and that's
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not guaranteeing you're going to get
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eligible it looks at all the factors it
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said um
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uh how long you've been on your job uh
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that's a compensating factor it looks at
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whether there's some overtime or second
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job income we can't count that's a
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compensating factor uh it's looking at
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your debt to income ratios i think your
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credit scores
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is it a 760 or is it a 580 you know
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where's it at
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uh so all those factors are a factor but
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the normal guideline
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is going to tell you 41 on how on the
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total income
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looking at just your house compared to
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your income you don't want that to
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exceed 29
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the skirting on manufactured homes has
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become a sticking point for some lenders
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paul's going to explain to us what it is
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that they need to know about the
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skirting that goes around your
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manufactured home
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you run into a lot of small issues
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sometimes do in the home and appraiser
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goes out there and it's all on how the
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appraiser notates information on the
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appraisal
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puts that the skirting's on there but
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it's not attached
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uh then you got to get somebody to go
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out there and attach it get the
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appraiser to come out there
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and it's got to meet the fha guidelines
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for mobile home and the fannie mae
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guidelines for mobile home
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all right this one's really important
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are you going to be able to refinance
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this
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manufactured home later on down the line
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if you need a little extra money or want
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to drop your interest rate
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yeah you can do if you're just trying to
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lower the interest rate
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it falls under the same guidelines
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fannie or freddie or or fha
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and the same guidelines as all of them
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you can go up to eighty percent of my
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cash out refinance
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if you're doing a rating term you can go
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up to uh i think it's 97
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percent that's with the uh you know
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where you got close costs and prepaids
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included in
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right and we're specifically talking
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about refinances where the manufactured
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home
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is attached to the land that's correct
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not for uh properties that are in a
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manufactured home park
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so you know you can't refinance those
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loans a lot of times those are called
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shadow loans and they're not the
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same thing it has to be your primary
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residence
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okay and you have to own the land in the
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mobile home it has to be considered at
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the assessor's office as a parcel
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as a as a residence immovable is what
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the terminology is
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and it has to be determined that for us
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to be able to do that alone buying and
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financing manufacturing homes is
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probably one of the biggest decisions
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you'll ever make in your life
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i want to thank paul for taking the time
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to answering all the questions about
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mortgages
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if you have any questions for me or paul
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about manufactured homes
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please reach out to us in the comments
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section if you would like some more
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information about manufactured homes and
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you want to watch some more videos you
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can click this video right here
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my name is christina smallhorn your real
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estate whisperer
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and i tell you all this because you
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matter
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