Let it Roll! Mobile Home & Land Lending

Transcription

1 Let it Roll! Mobile Home & Land Lending Wednesday, October 18, :00 a.m. 11:00 a.m. mortgage.car.org (213)

2 For a full recording of webinar Speaker slide deck Speaker bios

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4 Mortgage Rescue fka Finance Helpline B2B Webinar: Let it Roll - Mobile Home & Land Loan Lending John Henricksen Principal Empire Mobile Home Loans Maryilyn Love Development Manager Valley Republic Bank Marc Farfel Lender Liaison CALIFORNIA ASSOCIATION of REALTORS 6

5 Mortgage Rescue fka Finance Helpline B2B Webinar: Let it Roll - Mobile Home & Land Loan Lending John Henricksen Empire Mobile Home Loans 509 7th St #200 Santa Rosa CA (P) (F) BRE NMLS Specializing in Mobile Home Financing john.empirehomes@yahoo.com 7

6 Myths About Manufactured Mobile Home Lending

7 Myth #1 You can not get financing on older Mobile Homes in parks. We have programs available for older homes as well. I recently closed on a The main difference is the down payment and interest rates. Lender will require a minimum of 20% down on any homes built prior to June 15 th Because of the presumed risk, the lender will be rewarded with a higher interest rate, usually starting in the 9% range

8 Myth # 2 All Manufactured/Mobile home loans require a minimum of 25% or more for a down payment. Homes manufactured after June 15 th, 1976 customers have an option of a 5% down program.

9 Myth # 3 Customers need to have excellent credit to qualify for a Manufactured/Mobile home loan. While well qualified borrowers will get better interest rates, we also offer programs with fico scores as low as 600.

10 Myth #4 You can not get a loan on a single wide manufactured/mobile home. We have programs for Pre HUD and Post HUD homes (on or before 1976) single wide homes. The term is usually 15 years as apposed to 20 years for the double wide.

11 Myth #5 Customer can not get a Manufactured/Mobile home loan if they have had a foreclosure, short sale or Bankruptcy. Lenders will require a minimum of 5 years post BK, Short sale or foreclosure with good credit after the event. However, we do have one lender that will make the loan as soon as one year of discharge of BK. Usually requiring a larger down payment and a higher interest rate.

12 Some General Requirements All borrowers will need a copy of a state issued ID (CDL or ID card) All home purchase or refinance will require an appraisal Borrowers must have 2 years of work history. Not necessarily at the same job. Self Employed borrowers will need 2 years of tax returns, and the lenders will determine income using the NET income.

13 Are gifts allowed for the down payment? Yes. Any or all of the down payment can be a gift. Some lenders will require bank statements from the person making the gift to insure they had the funds available to make the gift.

14 Can I purchase a MH as a 2 nd or vacation home? Yes. Vacation/Secondary homes will require a minimum of 20% down payment.

15 Lender Ratio Guidelines Most lenders will hold tight to the 40% housing ratios and 45% back end or Debt to Income (DTI) ratios. There are exceptions. We have one lender that will stretch to 55% one the back end and 45% on housing. Ratio calculations will include the park space rent.

16 Can seller credit buyer for closing cost? Yes, the seller can credit the buyer for any or all of the closing cost including first year of taxes and insurance. Unlike residential lending, there are no pre determined percentages than can not be exceeded. As long as the credit for closing cost are NOT used as down payment.

17 Down payment requirements Borrower must have 3 months of bank statements to source the down payment. No part of the down payment can be borrowed. This is a common question from customers. Can I take an advance on my credit card. No, that is borrowed funds. Borrowing from retirement funds is allowed.

18 Conclusion Some customers are surprised that they have already been approved with a residential/real property loan that is much higher than a manufactured home in a park. There are 3 reasons.. Rates are generally a little bit higher because these homes are considered personal property, or chattel. I have to calculate ratios using the space rent The term is only 20 years.

19 5 Easy Steps to Manufactured/Mobile Home Financing Application Loan Conditions Processing Escrow & Loan Document Signing Home Ownership

20 Step 1 Application Complete the credit application as completely as possible. We can do this by phone or . Once we have the completed application with all of the property information we can usually have an answer for you within 24 to 48 hours.

21 Step 2 LOAN CONDITIONS Gather up all the loan conditions required on your approval. Items such as one month of current pay stubs (for each borrower if there is a co-borrower), 2 years of W2 s, 3 months of bank statements showing the source of down, clear copy of driver s license and Social Security Card. If you are self-employed then the lender will require last 2 years of Federal tax returns, all schedules. Keep in mind self-employed income is based on NET income not gross. This figure can be found on line 31 of your schedule C of your return. It is very important to send your loan conditions in right away to prevent and closing delays.

22 Step 3 PROCESSING When your purchase contract is accepted and your agent has opened escrow, we will then order the appraisal. You, the buyer, start the park approval process. We will provide you with a quote for homeowner insurance. You are free to use any insurance agent/company you like; we just like to offer the quote for your convenience.

23 Step 4 Escrow and Loan Document Signing After all of the loan conditions and appraisal have been cleared by the lender, the loan documents will be sent to the escrow company. Your agent or the escrow company will contact you to make arrangements to come in to sign your documents, and your remaining down payment will be collected. The signed loan documents will be sent back to the lender for review. Any missing documents will be collected. Then the lender will send a wire to the escrow company. When the escrow company receives the wire, your transaction/purchase will be considered closed.

24 Step 5 Home Ownership! You as Buyer s agent will then give you your new home keys - you move in and start enjoying your new home!

25 EXPECTATIONS OF THE LOAN PROCESS Loan Process Appraisal Escrow Fees Full Documentation Things Change!

26 Loan Process The loan process is typically days. In some instances a loan can be processed in days.

27 Appraisal A Manufactured Housing Lender requires an appraisal. This is a service provided by a certified professional to determine the value of the home. There is a fee. The buyer pays the fee up front directly to the appraiser at time of appraisal.

28 Escrow Fees Depending on the transaction, the lending institution can finance all or portions of the escrow fees.

29 Full Documentation A manufactured home loan is a full document transaction. That means that the lending institution will need to verify all applicants employment history, W2 s or taxes for the recent 2 years,(if self employed), credit and debt history, and verify current income.

30 Things Change! Occasionally a lending institution will request verification of a document or need something that is specific to your transaction only. The emphasis here is that sometimes things change. At Empire Mobile Home Loans we pride ourselves on the ability to function and overcome these situations, helping you to understand them and obtain all necessary documents or requirements to meet them

31 My Contact Information John Henricksen Empire Mobile Home Loans 509 7th St #200 Santa Rosa CA (P) (F) BRE NMLS Specializing in Mobile Home Financing

32 Mortgage Rescue fka Finance Helpline B2B Webinar: Let it Roll - Mobile Home & Land Loan Lending Marilyn Love Business Development 5000 California Avenue, Suite 110 Bakersfield, CA Direct Line Cell Fax m.love@vrbank.com 35

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45 Questions? Webinar recording and slides will be posted on financeworkshops.car.org If your question did not get answered, 48

46 Save the Date! Upcoming Mortgage Rescue TM fka Finance Helpline B2B Webinars Wednesday, November 1 st 10am 11am (tentative) Tuesday, November 14 th 10am 11am (tentative) Tuesday, November 28 th 10am 11am (tentative) Wednesday, December 6 th 10am 11am (tentative) Wednesday, December 20 th 10am 11am (tentative) With 5 remaining topics for this year: (Reverse Mortgage, Improving Credit, FHA Updates, Investment or 2 nd Home Purchase, and finally Valuation part 2 - Creating an Actual Appraisal Valuation)

47 Thank you! mortgage.car.org (213)