Before you decide to purchase a more affordable mobile home rather than a traditional home constructed in place and on a foundation, you really need to learn a few terms and how they apply to the structure that you are thinking about buying. Mobile homes are defined as units that were built before June 15, 1976, which means that they did not have to meet safety regulations that were enacted in 1974. Manufactured homes are units that were built after the June 15, 1976 cutoff date, and they are required to meet the safety act from 1974. The final category is a modular home, which is a factory-built home that is assembled on site. These homes must meet all local building standards.
What all of this means is that a true mobile home can be very challenging to finance. Lenders shy away from these structures that might not be constructed in a safe manner because they are not as reliable a form of collateral. Many times mobile home buyers will finance with a chattel loan for the cost of the mobile home only when no land is included in the deal. These Arizona mobile home loans are actually a type of personal property loan rather than a real estate loan. The term is normally shorter than a traditional mortgage which makes the payment amount larger and more challenging to pay in some cases.
There are also specialized lenders who only finance Arizona mobile home loans. These lenders are more familiar with the mobile home market, the value of the units, and the pricing. Though these are loans for a place that you will be living, most do not offer the tax and other financial benefits of a traditional mortgage. These specialized lenders are also much more likely to fund the purchase of a used mobile home than almost any other lender.
The most appealing aspect of hard money is that it is offered by a private lender. This removes a great deal of the red tape that is usually associated with securing a loan for a home. And while not all hard money lenders are going to be interested in financing a mobile home purchase, you are likely to find some who are willing to work with you. But the biggest factor will be the numbers on the loan.
Hard money lenders are in business to make money. And to do that consistently, they are going to require that the property, or in this case mobile home, has a value above the loan amount. You should know the value of the unit you are interested in purchasing and the percentage that the lender is willing to offer. Also, be sure that you can document that you have the additional funds needed to cover the remaining amount of the purchase. Not all loans for mobile homes will get financed from a hard money lender, but with the right deal, it is a very good creative option for some borrowers.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
© 2019 Level 4 Funding LLC. All Rights Reserved.