Has anyone had experience getting a mortgage for a property the banks consider "risky?" We've had an offer accepted on a 1980 single-wide on piers on 5 acres. It's got city water, electricity, heat, and everything, but all the banks and mortgage companies we've contacted(we've contacted MANY) have said they won't finance a single-wide(what's the difference whether it's single or double?), or they won't finance more than 80% for a single-wide. We'd have to put 20% down or more. We'd planned to build a permanent home out of "green" materials on the property one day, but it doesn't seem like we'd qualify for one of those special green loans. We really had our hearts set on the place, and this seems like such a dumb thing to lose it for. Any suggestions?

-- brian from cincinnati (bdmetz@altavista.com), December 04, 2001

Answers

There are independent mortgage brokers that pool money from individual investers who have a little more room than regular lenders. They will look at the individual situation instead of expecting you to fit their mold. We recently had a good experience with this method.

-- S Baylous (sbaylous@aol.com), December 04, 2001.

We had to go that too because in Maryland{maybe everywhere?} its harder to get a loan for land zoned ag. not residential,plus add the fact we own our own company,and yes we made a late payment 5 yrs ago {oh boy} but it counts.Our rate was 1 % higher then the going rate and we have to stay with this company for 2 yrs. It was the best we could find and they REALLY worked with us,we were forward out right and so were they.

Do check how many points they charge and if the loan will have an arm on it ,ours does it can go go 2 pts. maybe we should have looked more but like yourselves we called lots of companies and my mom owns a title company so she knows a bit more,and this was the only way.oh yah we olny borrowed 80% of the value they would not go higher.

-- renee o'neill (oneillsr@home.com), December 04, 2001.

Look in the yellow pages under "finance companies". We have an excellent one in our little town. The interest may be slightly higher,and they are governed by different rules, but they're willing to do things the conventional banks won't. As for single to double wide, in our state it's actually to do with whether the home is physically attached to the land, i.e. on a basement or full- perimeter blocking. Probably so you can't roll off with the house and the mortgage? Also, something we once ended up doing was getting a loan through a lawyer-- he had contact with someone who did these informal loans. I've heard of people taking out a loan for the down payment and then a mortgage for the remainder. Hope these ideas help, good luck.

-- Dawn (olsoncln@ecenet.com), December 04, 2001.

Governed by different laws is the wrong way of putting it, according to husband.

-- Dawn (olsoncln@ecenet.com), December 04, 2001.

You might want to try a mortgage broker. I worked for a company that did mainly non conforming loans. Non one else wanted to do the extra work required to get these loans approved, so they made a business doing it. I processed mortgages for the mortgage broker and we had access to many more "mortgage companies" than most banks. The company I worked for did not charge any more than the banks in our area. Depending on how you fit thier criteria, you might have to pay a larger origination fee, rates or points. But the work they do finding your loan a home is well worth it. Also, you may see if the seller is willing to do a lease option, or owner financing. If not, then see if he will take a second mortgae to keep your loan to value around 80 percent. A lot of place do require that the mobile home is permantly afixed (tong removed, underpinned ect...) Hope this helps!!! Lisa B.

-- Lisa B. (J5diecast@aol.com), December 04, 2001.

The 1980 mobile is getting kind of old for a regular mortgage company to loan on. From what I hear, loans are getting tighter across the country. The 20% down is what you should expect from a conventional lender. You might try to find a private investor.

I am closing on a great deal for cash, a house on 6 acres, which was greatly discounted because the owners were real desperate don't-wanters. I plan to resell it and carry back a loan on it after a 10% down payment. You might also find someone private who will finance the place with a 10% down, they're out there, you just have to look.

-- bruce (rural@inebraska.com), December 04, 2001.

Banks and mortgage companies consider a single wide not on a foundation a depreciating investment ( much like a car), not an appreciating investment, thus the risk and 20% down needed. Even double wides need to be on a permanent house type block foundation to be considered "real" real estate that appreciates in price, and does not depreciate over the years, and still most banks will still require 20% down due to the poorer resale value of a modular home.

Once you look at it from these standpoints, you can understand those reasons for the banks requirements to cover their risks involved, mainly much lower resale value should you default on your loan than a house.

-- Annie Miller in SE OH (annie@1st.net), December 04, 2001.