馃攳
Manufactured Home Loan MISTAKES Will Cost You THOUSANDS - YouTube
Channel: Kristina Smallhorn
[0]
i've been talking about manufactured
[1]
homes for years now in all the years
[3]
i've sold real estate some of the most
[5]
predatory lending practices have come
[7]
from manufactured home loans and it ends
[9]
up costing homeowners thousands of
[10]
dollars over the years and one of the
[12]
biggest confusions when it comes to
[13]
manufactured homes is the type of loans
[15]
that you can get for a manufactured home
[17]
and even in my own comments section
[18]
people will say you can't use a va loan
[21]
if you're going to get a manufactured
[22]
home which happens to not be true but
[24]
there's going to be some requirements
[25]
that you need to know and we're going to
[26]
be going through them today so that way
[28]
you can get the best manufactured home
[29]
loan for your situation and i will say
[31]
some lenders don't even know the
[33]
stipulations when it comes to
[34]
manufactured homes it's not that they
[35]
don't know it's just that they don't do
[37]
a lot of those loans i'm not throwing
[39]
them under the bus so at the beginning
[40]
of every video i have to explain the
[42]
difference between a manufactured home
[44]
and a modular home and we're gonna go
[46]
through this like i do every single time
[48]
this right here is a manufactured home
[50]
it's built in a manufacturing plant and
[52]
it's built to hud specifications and hud
[55]
standards and many times you'll see
[57]
inside the cabinetry they'll have some
[58]
kind of tag that gives you all the
[60]
specifics if it's not in the cabinet in
[62]
the kitchen it's going to be in the what
[64]
is it going to be in the oh the
[65]
electrical box and in most states they
[67]
require a license plate on the back that
[69]
is a manufactured home this right here
[71]
is a modular home it's built to totally
[73]
different specifications it's in line
[75]
with all traditional home building it's
[77]
also built in a manufacturing plant but
[79]
that's not what we're talking about
[81]
today we're going to be talking about
[82]
the manufactured homes so why is it so
[84]
difficult for people to get the right
[85]
kind of mortgage when they're buying a
[86]
manufactured home well there's many
[88]
reasons why first is because many
[90]
lenders don't understand that the
[92]
manufactured home is actually a home and
[94]
can be tied to real property in some
[96]
cases i've seen where people have
[98]
purchased a brand new manufactured home
[100]
and had a lot that they already owned
[102]
and they put the manufactured home on it
[104]
and then they got something called a
[105]
chat alone the chat alone means that the
[107]
land isn't tied in with the manufactured
[110]
home itself the problem with that is you
[111]
end up paying a ton in interest and i
[114]
don't want that for you if you have a
[115]
piece of land and you have a brand new
[117]
manufactured home you can tie those
[119]
things together and make yourself real
[121]
property now there's going to be
[123]
requirements for each of these loans so
[124]
we're going to be getting into that
[125]
right now just like you're getting any
[127]
kind of loan whether it be for a car a
[129]
house a manufactured home your credit
[131]
score makes a difference if you have
[133]
terrible credit you're not going to be
[135]
able to get a good home loan each one of
[137]
these loan products is going to require
[138]
a different credit score but of course
[140]
the higher your credit score the better
[142]
the interest rate you're going to get i
[143]
just needed to point that out there's
[145]
various types of loan packages but one
[146]
that you may want to consider is fannie
[148]
mae the fannie mae's manufactured home
[150]
advantage which allows buyers to finance
[152]
a manufacturer home for 30 years with a
[155]
down payment as low as 3
[157]
but to qualify your home needs to be
[158]
very specific criteria for instance the
[161]
home must be at least 12 feet wide and
[163]
it has to be attached to land so you're
[165]
not going to be able to get one brand
[167]
new off the lot and then put it in a
[168]
leased community and the minimum square
[170]
footage on 600 square feet is pretty
[172]
typical of a lot of these loan packages
[174]
here's another tip not all loans are
[176]
going to require you to save for a down
[178]
payment even though manufactured homes
[180]
are very affordable just always make
[182]
sure you have a reserve amount of money
[183]
for all sorts of other things that can
[185]
happen during the loan process you
[187]
always want an emergency fund not only
[189]
that even if you're buying a
[190]
manufactured home brand new you're still
[192]
going to want to have it inspected by
[194]
your own inspector that's going to cost
[196]
you around 500 and there's always going
[198]
to be an appraisal process that you're
[199]
gonna have to pay for those funds are
[201]
going to have to be set aside so even
[203]
though you may not be required to have a
[204]
down payment make sure you have some
[206]
extra money reserved for emergencies
[209]
down payment and inspections another
[211]
loan package is by freddie mac now their
[213]
square footage requirement is 400 square
[215]
feet now granted they do have to meet
[217]
the freddie mac requirements so what are
[219]
those these requirements are very
[220]
similar to fannie mae's the home must be
[222]
in a permanent chassis and it must be
[224]
considered real property the living
[226]
square footage must be 400 square feet
[228]
so even though you may find a house that
[230]
has tons of porches and if you look at
[231]
the mls it will say you know it's you
[233]
know 1200 square feet they might be
[235]
considering all the square footage make
[237]
sure it's the living square footage
[238]
that's at least 400 square feet and if
[241]
it's in a park and it's on leased land
[242]
you're not going to be able to get this
[244]
particular loan package now let's talk
[246]
about fha loans which is probably the
[248]
most popular type of loans when it comes
[250]
to manufactured homes they're also the
[251]
most common for first-time homebuyers
[253]
that are looking to get into the market
[254]
in the real estate game so this is the
[256]
one you really want to pay attention to
[257]
they have a title 1 and a title 2 type
[260]
of program now the title 1 can be used
[262]
to purchase a manufactured home that is
[264]
not tied to land there are a few
[266]
stipulations though such as the property
[267]
must be the primary residence it has to
[269]
meet the fha guidelines before it's
[272]
placed in the rental site and it must
[273]
have all connected utilities these loans
[276]
tend to be shorter time frames they're
[278]
usually about 20 years maybe even less
[280]
and those interest rates are going to be
[281]
a little bit higher than if it was
[283]
actually attached to property now let's
[285]
get into title 2 with an fha loan a
[287]
title 2 can be used to purchase both the
[290]
manufactured home and the land jointly
[292]
these loans cannot be used in mobile
[294]
home parks or leased land mo homes do
[297]
not qualify if the requirement is being
[299]
financed with a home that's built before
[301]
1976. and the reason why they will not
[304]
finance a manufactured home before 1976
[306]
because before 1976 there was no
[309]
guidelines on how these manufactured
[311]
homes were built and it wasn't until hud
[313]
stepped in and said there were certain
[314]
specifications that these homes had to
[316]
meet then that's when fha decided to go
[318]
ahead and make these loan packages and
[320]
just remember with a title ii it must be
[322]
attached to property it cannot be in a
[325]
part so those are the two loan products
[326]
that are offered by fha for a
[328]
manufactured home with a title one
[329]
you're not required to have it attached
[330]
to a piece of land you're going to have
[332]
a shorter term and you're more likely
[334]
going to have a higher interest rate
[335]
with a title ii it must be attached to
[337]
land you're going to be able to finance
[339]
it for even longer and you're most
[341]
likely going to get a better interest
[342]
rate no matter what loan package you
[344]
decide that you're going to be using to
[345]
purchase your manufactured home there's
[347]
going to be some papers that you're
[348]
going to need to have one of them is
[350]
your tax returns you're also going to
[352]
need your pay stubs your w-2s and any
[354]
other proof of income you're also going
[356]
to want to let your lender know if
[357]
you're paying any alimony or palimony or
[359]
any child support you're going to need a
[361]
copy of your bank statements and other
[363]
assets they're going to want a copy of
[364]
your credit history and in most cases
[366]
they're just gonna go ahead and pull up
[367]
a fresh new one if you're getting any
[368]
money from a family member they're gonna
[370]
want gift letters you need a copy of
[372]
your photo id and any rental history now
[374]
here's the one that always people get
[376]
wrong they say va does not allow for
[378]
manufactured homes which is wrong they
[381]
don't allow for mobile homes those are
[383]
homes that were built before 1976 and
[385]
yes the va will not qualify a loan that
[388]
is a mobile home so what are the
[390]
requirements for a va loan if you do
[392]
want to use it va does require that the
[394]
manufacturer home that you're purchasing
[395]
must be on land that's owned with the
[398]
manufactured home itself they have to be
[399]
tied together it has to be considered
[401]
real property now va loans are available
[403]
to veterans that qualify for active duty
[405]
service members through the department
[406]
of veteran affairs now why would anybody
[408]
want to use their va loan well here's
[410]
the thing you may not even have to put
[412]
down any money and when you use a va
[413]
loan you don't have to pay any private
[415]
mortgage insurance
[416]
just one way to get your payment down
[418]
per month to qualify for a va loan the
[420]
home must be on a permanent foundation
[422]
it must meet the hud guidelines and you
[424]
must be purchasing the land underneath
[427]
it if you're buying a brand new
[428]
manufactured home it all has to tie
[430]
together so when someone tells you you
[432]
can't use a va loan on a manufacturing
[434]
home tell them full pucky yes i can and
[435]
you can tell them exactly the
[436]
requirements that it takes i had to come
[438]
outside in my overalls for this one
[440]
because everybody knows about rural
[441]
development loans another load product
[443]
that a lot of people say you can't use a
[445]
rural development loan for manufactured
[447]
homes you can but there is requirements
[450]
of course it needs to be attached to
[452]
land it has to be a certain age it has a
[455]
square footage requirement and the
[456]
reason we're not being specific is
[458]
because it's going to change and i don't
[460]
want to get stuck with bad information
[463]
so if you do want to use a rural
[464]
development loan make sure you speak
[466]
with your lender now if you do do a
[468]
rural development loan i will tell you
[469]
it will take a little bit longer than
[472]
the traditional fha loan because they
[474]
have to go through the rural development
[476]
underwriting and it's a government
[477]
entity and as you know anything with the
[479]
government is going to take a little bit
[481]
longer not in all cases sometimes they
[483]
get through really fast but other times
[484]
it can take up to 30 days and if you're
[486]
buying a manufactured home that's
[488]
already existing on a piece of land from
[490]
a seller please let them know that you
[492]
are using a rural development loan that
[494]
it could take a little bit longer than a
[496]
traditional sale and they're a good look
[497]
package because you don't have to put as
[498]
much money down you still will have to
[500]
pay pmi just fyi you still have to pay
[502]
pmi for fyi
[506]
now the next loan product is my least
[509]
favorite which is a chat alone why is it
[511]
my least favorite it's my least favorite
[512]
because most of the time that the
[513]
interest rate is extremely high the loan
[515]
period for those manufactured homes on a
[518]
chat alone are extremely short three if
[520]
it's not attached to land and at some
[522]
point somebody tries to sell the park
[524]
underneath it and you have this loan on
[526]
it and they kick you out of the park
[528]
what are you gonna do that being said
[530]
one of the best ways to get a
[532]
manufactured home and a deal is to go to
[534]
some of these lenders and ask if they
[536]
have any foreclosed properties now
[538]
you'll have to purchase them cash and if
[540]
you're really savvy and you can get that
[542]
thing on a bed and move it to your
[543]
specific property and fix it up and get
[545]
yourself a heck of a deal for a really
[547]
nice manufactured home just a little tip
[549]
there now if you found yourself a
[550]
manufactured home and you've gone
[552]
through every single loan product and
[553]
you can't qualify for those you may want
[555]
to check out a personal loan here's the
[557]
problem with a personal loan though your
[559]
credit score still needs to be high if
[561]
it is bad you're going to be paying up
[563]
to 20
[565]
in interest the terms of that loan could
[567]
be all over the map but you won't have
[568]
to meet the same requirements that you
[570]
would for all the other loan packages
[572]
with inspections and appraisals once you
[574]
get a personal loan they just write you
[575]
a check but you could be paying up to 20
[577]
percent in interest
[579]
christine does this now now i know with
[581]
all these home loans for many of you
[583]
it's not going to be even a possibility
[584]
for you to get a manufactured home
[586]
that's attached to land and you have to
[588]
move into a park when you go to these
[590]
parks i really want you to do a little
[592]
investigating of them i want you to find
[594]
out how much their lot rents are right
[595]
now and i also want you to find out what
[597]
do those lot rents cover and how much
[600]
they go up per year i also want you to
[602]
get a copy of their covenants to find
[604]
out what the rules are for that specific
[606]
part and if you can try to see if you
[608]
can find a park that is considered a
[610]
cooperative in a cooperative
[612]
manufactured home park is a park that is
[614]
owned by all of its residents so the
[616]
likelihood of being sold out to a
[618]
investor is going to be very very very
[620]
slim they're very common up in the
[622]
northeast area and they're trickling
[624]
down more towards the south if you can
[626]
find a park that's a co-op that would be
[628]
the best situation in my mind because i
[630]
would know that the house that i just
[631]
purchased and put on this lot isn't
[633]
going to be sold out from underneath me
[635]
in a few years now that you've seen all
[637]
these loan products i know that your
[638]
next question is going to be which
[640]
lender do you think is the absolute best
[643]
here's the thing you could be anywhere
[645]
in the united states and i could say one
[647]
specific lender and then you go to into
[649]
that lender's office and you meet with a
[651]
person and they're a total idiot there
[653]
isn't one company that's actually the
[655]
best when it comes to manufactured homes
[657]
because there's always a person behind
[659]
that phone or desk and those numbers my
[662]
best bet for you is not to look for a
[664]
specific company but is to look for a
[667]
specific person that specializes in
[669]
manufactured homes this is one of those
[671]
things you're gonna have to do your own
[672]
homework i will recommend that you go
[674]
ahead and go to your local credit union
[676]
or your local bank because they're going
[678]
to know your community better than
[679]
anybody else so which loan package is
[681]
going to be for you let me know in the
[682]
comments section below to watch more
[684]
videos about manufactured homes go ahead
[685]
and click these videos right here my
[687]
name is christina smallhorn your real
[689]
estate whisperer and i tell you all this
[691]
because good real estate information
[693]
matters
Most Recent Videos:
You can go back to the homepage right here: Homepage