Posted on: 09th Mar, 2009 02:18 pm
I am seriously looking to purchase a new manufactured home and place it on land (owned by parents) which currently has a mortgage on it. I would need to borrow enough to buy new home, excavation/foundation work and pay off existing loan on the land.
I have been approved for a "home only" loan up to $97,000 @ 10 % for 20 years. However this was not my initial intent. Initially, I wanted to do a package deal (home/land payoff/sitework) and I submitted my information along with my fiance's (co-signer/co-applicant) and was told that while my credit was good enough (688-697) to be considered my fiance's (634), however, was not. So the offer was based on my income alone. (The total amount I'd be looking at borrowing to do a package deal would be around $125,000 to $130,000)
$81,000 (new home price)
-$7000 trade value on single section
$4200 sales tax (New York state)
$12,800 (sitework/foundation estimate)
$38,500 (payoff balance of existing home and land)
$129,500 (not counting down payment or closing costs)
I have also been told that in order for this loan to go through I will need to deplete my savings to cover site work. While I expected to pay something out of pocket but I'm am not crazy about depleting my entire savings.
My question: Is this the best deal I can hope for?
I have been approved for a "home only" loan up to $97,000 @ 10 % for 20 years. However this was not my initial intent. Initially, I wanted to do a package deal (home/land payoff/sitework) and I submitted my information along with my fiance's (co-signer/co-applicant) and was told that while my credit was good enough (688-697) to be considered my fiance's (634), however, was not. So the offer was based on my income alone. (The total amount I'd be looking at borrowing to do a package deal would be around $125,000 to $130,000)
$81,000 (new home price)
-$7000 trade value on single section
$4200 sales tax (New York state)
$12,800 (sitework/foundation estimate)
$38,500 (payoff balance of existing home and land)
$129,500 (not counting down payment or closing costs)
I have also been told that in order for this loan to go through I will need to deplete my savings to cover site work. While I expected to pay something out of pocket but I'm am not crazy about depleting my entire savings.
My question: Is this the best deal I can hope for?
Hi tanya,
I agree that it doesn't make any sense in depleting your savings to pay the down payment. But again if you do not pay 20% down, then you will have to go for a private mortgage insurance (PMI). The deal that you have mentioned is quite good in my opinion except the down payment part. However, I would suggest you to speak to some other lenders as well. You can check out the deal that they are offering. Thus, you will have some options which will help you in deciding which one you should go for.
You may also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will help you to know the rates that you may receive. This consultation will also give you an idea about the present market rates.
Take Care.
I agree that it doesn't make any sense in depleting your savings to pay the down payment. But again if you do not pay 20% down, then you will have to go for a private mortgage insurance (PMI). The deal that you have mentioned is quite good in my opinion except the down payment part. However, I would suggest you to speak to some other lenders as well. You can check out the deal that they are offering. Thus, you will have some options which will help you in deciding which one you should go for.
You may also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will help you to know the rates that you may receive. This consultation will also give you an idea about the present market rates.
Take Care.
try to figure out a way to purchase a true modular home instead of the doublewide.
I know they are more expensive, but the difference in your 10% rate on a 20 year for the doublewide will be much different to the 6% on the 30 year term that you could get with a true mod. You may owe a little more, but have the same payment and a home that will appreciate instead of depreciate.
Best of luck!
I know they are more expensive, but the difference in your 10% rate on a 20 year for the doublewide will be much different to the 6% on the 30 year term that you could get with a true mod. You may owe a little more, but have the same payment and a home that will appreciate instead of depreciate.
Best of luck!
I agree with Nathan on purchasing a modular as opposed to a trailer.
