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You have decided to purchase a mobile home as an economical way of buying a home. You find a unit in a mobile home park that meets your needs. You have done some preliminary research on line and discovered that current mortgage rates are 3.39% for a 5 year term. You are thinking that on a purchase of $70,000 with a down payment of $10,000, the monthly payment would be approximately $300 per month. Add to that the pad rental of $350 per month gives a total monthly amount of $650.00.
You decide to take the search to the next level and get pre approved. You go to your local bank and discover that for mobile homes in parks, the bank doesn’t discount the rate and actually charges a premium over and above the current posted rate of 5.24%. The lender also says that the age of the mobile home can affect the amortization period. An older home would possibly be amortized over 15 or 20 years as opposed to the 25 years that you based your calculations. This could increase the payment upwards from the $300 per month you thought it would be. The lender also advises that they require a consent form signed by the park owner and that some parks have issues with these forms and don’t like to sign them.
You decide to ask the banker what you would qualify for on a mobile home that has it’s own land. The banker advises the rate would be the posted rate and amortization will depend on the age of the home. Based on 25 years you would qualify for $130,000. You know that the cost would be more than this amount so you think that this in not an option.
After more reflection, you decide to call an Invis mortgage broker recommended by a friend. The broker advises that the banker is correct regarding mobile homes in parks. They are not easy to finance. The broker does advise however that there are lenders who will lend on mobiles on their own land with discounted rates in the 3.39% range. Given the lower rate you would now qualify for approximately $170,000 with a payment of $770 per month. The broker explains that you may receive a 30 year amortization if the mobile home is updated and renovated. Given your income, down payment and the longer amortization period, you would now qualify in the $200,000 range and the payment would be approximately $1000 per month. the broker explains that they have access to over 50 lenders and their plans and have at least 3 lenders who would consider a mobile home on land at the lowest rate and more if the home is modular.
You are now working with a Realtor and obtaining your mortgage from an Invis mortgage broker!
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