How to Find Mobile Home Lenders

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This seems like a contradiction, but it should make Manufactured Home loans a logical consideration among the possible lenders that are looking to emerge into a lucrative new niche market. Which leaves everyone in the Mobile Home community asking the question: Who will step up to the plate to be the leading Mobile Home Lender? It is possible that Warren Buffet will step up to the plate, but his big investments and movements lately have seemed incongruous. He may move to a low-stakes table, while the Manufactured Home financing market is overtaken by a new investment company willing to emerge into a new market starving for capital.

Lending standards in the Manufactured Home finance market have typically become restricted throughout periods of economic hardship. This is expected, but still unwelcome. The tight standards that lending institutions are now maintaining for Manufactured Home loans can be compared to a agriculturist who drains all the nutrients from his dirt as quickly as possible. The farmer then blames at the grocer for his losses, instead of realizing that he himself is truly responsible for poisoning the well. The banks have been taking advantage of the relaxed laws for nearly half a decade, while profiting from allowing irresponsible lending to occur, then securitizing the loan and selling it off. Now the hens have come home to roost, and the banks are acting irresponsibly in the opposite direction, on the side of over caution. Manufactured Home lending institutions are using any excuse to reject completely sound loans.

Mobile Home finance California agents are now in the position of not knowing who the new primary lender will be in the Manufactured Home finance industry after the dust settles. In recent news the fed has banned Taylor, Bean and Whitaker from providing any future loans backed by by the federal government. HUD believes Taylor failed to submit a necessary financial report, which amounted to fraud concerns. Taylor was also ordered to cease in issuing MBS for Ginnie Mae. This firm was the former premier source of funds for manufactured homes, they lent nearly $1.45 billion of all Manufactured Home investments in 2007, which were insured by the Federal Housing Administration.

Wells Fargo, JP Morgan Chase Bank, and Countrywide are the remaining large mobile housing lenders, but these companies aren’t as active as they used to be in the Mobile Home loan market. This small amount of lenders will likely lead to downsized competition, yieldning a high demand and therefore, higher interest rates passed on to the consumer. In this scenario, the lenders have the upper hand and will probably only issue a limited number of loan programs available to refinance or finance a Mobile Home in America.

Mobile Homes have been the first step towards homeownership for lowincome and retired Americans for quite awhile. Mobile Home loan brokers are discovering it more and more challenging to find new sources of mobile home funding from a group of lenders that has shrunk during the past several years. Manufactured houses, which are factory-built in parts and then put together at a land site, are significantly less expensive than traditional homes. According to the Commerce Department, the average price for a Mobile Home in 2008 was $65K, much lower than the average price of $292K for a site-built home.

Strangely, Warren Buffet’s Berkshire Hathaway revealed recently that in this current housing/banking crisis, their Mobile Home customers are foreclosing less and making their loan payments more. Berkshire subsidiary Clayton Homes’ delinquency rates for mobile home loans have also been stable during these times of turmoil: the delinquency rate was 3.26% in 2004; it was at 3.5% in 2008; and now it’s 3.82% here in 2009. However, the delinquency rate in the traditional housing market is higher, around 6.4%. Annual credit losses are running steady at a reasonable 1.5% of the loan portfolio. It is worth mentioning, however, that Clayton does not securitize their loans. This means the loans remain on their books, so they are much more conservative in their loan approval process.

California Plans to Allocate $200 M to Home Buyers

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Last Wednesday Gov. Schwarzenegger proposed a plan to allocate $10,000 to more than 20,000 California home buyers as state tax credits. The tax credits would provide up to $3,333 off state taxes for each of the next three years and could be combined with an $8,000 federal tax credit. Last Year, California legislators approved $100 million in tax credits for buyers of new, unoccupied homes.

Realtors, brokers and developers are behind this full force, because it would stimulate their industries and offer some job growth. The opposition to Gov. Schwarzenegger’s proposal are renters, who do not believe that their taxes should be spent as an incentive to purchase homes.

Mobile Home Owners who Do Not Own Land: Rosemead

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Mobile home parks are a means of affordable housing for elderly and low-income families. State law recognizes the particularly vulnerable condition of mobile home residents, and requires mobile home park owners to address relocation costs when redeveloping their property. But the law remains vague about those requirements, and the mediation is often handled first by the city council, and second by teams of lawyers.

http://www.sgvtribune.com/news/ci_13984388

Mobile Home Park Rebounds After Fire

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After 10 months, the San Fernando wildfire devoured more than 11,000 acres and destroyed nearly 500 residences, most of them in the Oakridge park. The first new residence has been completed, and the Kessler family has started movig into their brand new manufactured home, a beautiful yellow home with white trim. Of the 600 homes originally in the park, 101 were cleared for residency shortly after the fire and 17 required repairs. Today, 90 homes that sustained little or no fire damage have been reoccupied, said Ginny Harmon, Oakridge’s manager. A total of 130 lots have been cleared in preparation for new structures.

“It’s still a beautiful park,” Adam Kessler said. “And it’s a really nice community. It’s centrally located. It’s close to family. I like the security, the beauty, the people.” He captures mobile home park life in these statements. There is a comeradery found in mobile home parks that can not be duplicated elsewhere.

California Manufactured Home Institute (CMHI)

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The California Manufactured Housing Institute (CMHI) was founded to advance the availability of factory constructed homes by promoting the sale of factory constructed housing and the development of desirable sites and communities in California. The California Manufactured Housing Institute is a non-profit professional and trade association representing builders of factory constructed homes, retailers, financial services, developers and community owners and their supplier companies.

CMHI provides great resources for anyone seeking a service related manufactured homes. If you are looking to finance or refinance a mobile home loan, don’t bother, however, just give us a call at (800) 882-1999. If you need any other manufactured home services, they are a great resource for you.

Another service offered by CMHI is up to date information on California and federal Manufactured Home laws. The homepage has the “Latest News” right in the middle. Along with links to the left of the homepage that will take you to pages such as: Publications, Government Codes, Photo Gallery, and Definitions.

Are Mobile Home Loans more Difficult than Real Property Loans?

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Mobile Home Loans

Many people are curious, or stumped, when it comes to the differences between loans for mobile homes and loans real property site built homes. A lot of lenders that finance condominiums and single family real property homes do not lend on mobile homes, and a lot of people do not understand why. Well, there are some big differences in the properties themselves, and these differences affect the types of loans that can be done on the homes.

Basically, when you are looking at getting a loan, you need to put down collateral for that loan. The collateral for your loan is going to be the main factor where there are differences between a Mobile Home and Manufactured Home Loan and traditional “stick built” home mortgages. Just like how getting a loan for your vehicle and getting a loan for your business are two different types of loans, so are loans for mobile homes and real property site built homes.

In the United States, a mobile home loan is also referred to as a “chattel mortgage”. Chattel mortgages are securitized transactions, governed by Article 9 of the Uniform Commercial Code. The lender on a chattel loan secures the loan with a mortgage over the chattel, or the Mobile Home. Because chattel is defined as personal property, movable or immovable, for example, a book, a coat, a pencil, growing corn, a lease, a mobile home is considered a piece of personal property that could, for all intents and purposes, be moved; often times mobile homes are considered as riskier collateral than a real property, site built home.

Traditional homes that are built on site and include real property are a bit different from chattel, or mobile home loans. A mortgage loan for this type of home is a loan secured by real property through the use of a Note, which is a document that evidences the existence of the loan. Real property mortgages can and should be additionally evidenced by a Deed of Trust document, which is recorded with the County Recorder. The Recorder is a county official that insures that instruments are recorded, giving public notice of such transactions. The Deed of Trust will be recorded with the County Recorder of the County where the real property is located. Because there is no real property ownership involved with a mobile home loan, a lender cannot record any documents against the title to a mobile home, to further secure the loan.

Mobile Home Mortgages are not recorded or secured in the same fashion as real estate, or real property loans. The title information for mobile and manufactured homes is maintained by agencies directed by The United States Department of Housing and Urban Development. In the State of California, The Department of Housing has “Registration and Titling” offices that are specifically assigned to maintaining the title information on Mobile and Manufactured Homes. The homeowner, or purchaser, of a mobile home shall be shown on the title as the registered owner, and the lender shall be shown as the Legal Owner to the mobile or manufactured Home. When a mobile or manufactured home is encumbered by a Legal Owner, the actual Certificate of Title to the mobile home is issued to the lender, or legal owner. The homeowner, or borrower, is issued a Registration Card, which evidences the homeowner´s Registered Ownership interest to the mobile home. With site-built, real property homes, the homeowner retains a Grant Deed to evidence their ownership in the home, and the lender maintains the Note and Deed of Trust to evidence their ownership interest in the real property home.

It´s helpful to understand these title and security differences, as they play a major role in determining the actual loan type, qualifying agents and the loan process itself. Manufactured Homes  and real property site built homes are not only built differently, but titled differently and mortgaged uniquely as well.

The True Origin of The Mobile Home

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Mobile Home Origins

So you think you know how Mobile homes came to be called such? Easy, Right? Because they can be moved from place to place, hence a home that is Mobile. Mobile Homes.

Well, this is actually a common misconception.

According to snopes dot com, “The origins of the mobile home are tied to the end of World War II. The rapid downsizing of the U.S. armed forces after the surrenders of Germany and Japan in 1945 brought back millions of servicemen (and servicewomen) to the United States from overseas in the mid-1940s, many of whom were coming of age and anxious to establish their independence, attend college, get married, and raise children. This demographic bulge, coupled with America’s burgeoning post-war recovery from the Great Depression and a wartime economy, created an unprecedented demand for housing — both for standard residential units and for quarters to accommodate the many servicepeople who were taking advantage of G.I. Bill benefits to complete their educations at colleges, universities, and other types of schools.

The widespread use of military-style prefabricated housing eased the severe housing shortgage temporarily, and the eventual creation of suburbs such as Levittown took care of much of the long term need, but neither of these solutions addressed a potentially lucrative marketing niche — people who were dissatisfied with living in barracks-like housing but didn’t want to (or couldn’t) wait years for the construction of affordable suburban housing. It was James and Laura Sweet, a couple from Prichard, Alabama, (a town just outside of Mobile) who came up with the concept that fulfilled that market niche.

James Sweet, a machine shop supervisor by trade, was reportedly finishing off his workday lunch one afternoon in January 1946 when a newspaper article about the post-war housing shortage caught his eye. What if, he thought, someone could manufacture a type of housing that could be put together cheaply and quickly at a central location, but was small and light enough to be transported to wherever the purchaser wished to locate it? Something like the prefabricated structures of the era, but much nicer and more home-like — a prefab housing unit divided into discrete rooms (rather than one large open space) with all the electrical and plumbing fixtures already in place. They could be built as one- or two-piece units, then loaded onto flatbed trucks and delivered wherever the purchaser desired.

Sweet’s wife, Laura, was a commercial artist who did illustrations for magazines, and she drew up a few simple floor plans according to her husband’s directions. James Sweet built a couple of prototype units in his off-work hours to prove his concept viable, and then, satisfied with the results, used the couple’s savings, mortgaged their home, and borrowed against his life insurance to establish Sweet Homes, a company dedicated to the manufacture and sale of prefabricated  homes.

National advertising was still something of a rarity in the 1950s, but as the new national highway system enabled the sale of prefabricated homes to spread outwards (mostly to the north and west) from the Alabama/Mississippi area, more and more consumers were exposed to the houses, liked them, and began clamoring for their own “Mobile homes.” Business boomed, more manufacturers entered the fray, and factories were established all over the U.S. to better serve local customers. Eventually whole communities of these types of homes were created all across the country, populated by homeowners who preferred them to more expensive and more closely-quartered suburbs full of site-built housing.

Over the years, however, as the generation who fought World War II aged and prefabricated homes became commonplace throughout the U.S., newer consumers were unaware that the appellation “Mobile home” was a geographic reference, a term coined in acknowledgement of the area in which the industry got its start. The name was more and more frequently rendered as a common compound noun (“mobile home”), leading many to mistakenly conclude that it referred to houses that were “mobile” — that is, movable from place to place. While “mobile homes” can indeed be transported, they are of course far from mobile — in the vast majority of cases they are never moved off the sites to which they are originally trucked. (Most “mobile homes,” once situated, are moved again only if their owners replace them with newer models, or if they have to be removed because the land on which they sit has been converted to other uses.)”

And now you know the true origin of the Mobile Home.

go to snopes dot com for further information and literary citations.

Mobile Home Loans in the Economic Recovery

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Mobile Home Loans in the Economic Recovery

In the current economic recession, it seems like the average American is able to afford less and less.

These unfortunate circumstances have placed affordable housing in quite high demand. It’s no surprise now that manufactured homes and mobile homes are paving the way when it comes to reasonably priced housing. With this increased demand, there will be more and more Americans living in factory built homes. As ownership of manufactured and mobile homes has increased, so has the demand for Mobile Home Loans.

At the introduction of manufactured and mobiles to the housing market, most of the average mortgage banks were uninteresed in offering Mobile Home Mortgages. Most mortgage banks lumped Mobile home loans in the same category with car or vehicle loans. Much like vehicles, manufactured and mobile homes were thought to quickly depreciate in value, unlike a traditional stick-built home or condo that typically sees equity gaining over time.

Due to the lack of equity appreciation, for many years it was improbable that a manufactured or mobile home refinance or equity loan would be made available to owners of factory built homes at all.
As time went on, home values skyrocketed faster than general income could keep up with. The depreciation of manufactured and mobile home owner’s equity started to slow down.  Eventually the equity losses  stopped altogether. Manufactured and mobile homes soon were actually increasing in equity, in part due to the increasingly superior quality and safety of manufactured and mobile housing, coupled with federal and state laws governing the factory-built process.  While mobile home owners invested in their homes and continued to maintain and improve them, they gained precious equity.

Today, rate-and-term mobile home refinance loans and cash-out equity loans have become readily available to eligible owners of manufactured or mobile homes. It has become reasonably easy to locate what was considered “non-traditional” and even undesirable financing for manufactured or mobile homes.

As the current real estate market begins to recover, the manufactured and mobile home market endures the same loss of value as the “stick-built” and condominium homes. In the midst of the recovery, manufactured and mobile homes still remain viable for financing at terrifically competitive interest rates. These loans should be eligible for rate-and-term refinancing in the not-too-distant future and perhaps even “cash-out” equity loans in the somewhat-near-future.
There was a time when a manufactured or mobile home loan was frowned upon as a mere “car loan”.
Those days have long passed as manufactured and Mobile Homes have emerged as the last affordable housing in America with competitive financing available to qualified buyers.

California Manufactured Housing Development on the Rise

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So, is now a good time to buy a manufactured home in California?
The latest statistics say yes. In a recent comparison of home prices to rental agreements, the gap has closed to under $120 (msnbc). Therefore for just over a hundred dollars a month, you could own the house, condo, or mobile home you are renting. In the past, California´s past comparisons between renting and buying have normally been well over $1,000 per month difference.

California Manufactured Housing Development on the Rise

Can Mobile Home Owners Refinance “Upside Down” Loans?

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With the economic down-turn and the current home value decline, many mobile home owners are finding themselves stuck when it comes to refinance options. What options exist when there is no equity left in a mobile or manufactured home?

Lender’s use the term “upside down” when the value of a mobile home is less than what is currently owed on the mobile home mortgage.

Sadly, in this case, most homeowners will have trouble refinancing their loans with a conventional mobile home lender. A lender wants to ensure that if a homeowner defaults on their mortgage, the value of the home (if forced to foreclose) will exceed, or at least, meet the amount that is owed on the loan.

If a homeowner owes the bank more than the home is worth, waiting out this economic downturn is the only option. A homeowner will need to wait until home values go back up, while their principal balance on the mortgage goes down. Until the value of the home exceeds the amount owed, refinancing a mobile home loan or pulling cash out from the equity on the mobile home is not a viable option.

Fore more direct, honest answers like this, check out the California Mobile Home Finance website at http://www.camhf.com