I've noticed that lenders are shying away and dropping manufactured home programs. Can anybody tell me why? I am NOT looking for a loan!
2006-10-20 06:11:05 · 6 answers · asked by Jim Z 1 in Business & Finance ➔ Renting & Real Estate
As a former real estate appraiser and now a mortgage broker, I've seen the increase in request for financing and the availability of financing drop for manufactured homes, especially mobile homes.
The general consensus I've found with my contacts for this decrease is the 'typical' depreciation of the 'asset' (generally -the land appreciates, not the structure), the ability to move the actual mobile home (and never to be found again), and the 'destruction' of the asset due to natural elements (wind and hurricane).
Although these type of dwellings are used as residential properties, are popular and meet the lower purchase price of many hopeful homeowners (the number of which will and is increasing) these are often considered 'personal property' unless placed on a solid foundation and the wheels and tongue are removed.
There is talk of outlawing mobile homes in Florida all together. This will hurt the lower class (which is growing due to the elimination of middle class) and those who are being forced out of their current homes due to gentrification. This phenomenon is occurring though out the United States.
Via my contacts, experience and current events (from independent media, not corporate),
Elise Altergott, Principal Broker
Associate Mortgage: http://www.web-mtg.com/?src=answers
Associate Consulting: http://www.ac-fl.com/?src=answers
2006-10-20 06:27:21 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That depends on if you mean a fixed foundation manufactured home or a (mobile) manufactured home. With a (mobile) manufactured home, the lenders are very shy about giving a loan because the value depreciates every year vice a standard home in which the value fluctuates with the housing market.
If youv'e ever seen a title for a (mobile) manufactured home it is printed on the same form as an automobile title, the depriciation rates are similar to that of an automobile.
2006-10-20 06:18:58 · answer #2 · answered by x 3 · 0⤊ 0⤋
Because manufactured homes have 2 downfalls in securing the loan
1) They usually have no property associated with them - just the structure, which is not considered "fixed" to the property since you don't own the property. Think of it as trying to get a home loan to pay for a vehicle...that's the way the lenders see it. Land is forever, structures are not.
2) Manufactured homes do not hold or increase in equity like a traditional home, so there is a greater risk to the lender if you default on the loan - the bank is less likely to make back the money he loaned you.
2006-10-20 06:18:55 · answer #3 · answered by pknutson_sws 5 · 1⤊ 0⤋
because it's like a car loan. I knew Greentree use to be the largest lender for manufactured homes. If you are buying from a lot, you might be able to find the company to finace it for you.
If it is a manufactured home on LAND, then you probably can get a regural loan.
Best of luck,
Angela
2006-10-20 09:13:11 · answer #4 · answered by Biancoa 4 · 0⤊ 0⤋
because unlike classic website-outfitted homes, man made homes have a tendency to lose fee over the years. they in many situations have a a lot shorter economic life than website-outfitted homes which extra complicates the refinancing project.
2016-12-05 01:14:03 · answer #5 · answered by ? 4 · 0⤊ 0⤋
because they never go up in value. they only lose value, and it begins the moment it is moved from the lot you purchase it from.
2006-10-20 06:13:58 · answer #6 · answered by belinda f 3 · 1⤊ 0⤋