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Finance and Refinance

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.

May 27, 2010 · Tagged with , , , , ,

Finance and Refinance

What is Your Best Mobile Home Loan Option?

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While searching for a California mobile home loan, there is a determining decision to make before even beginning to consider your options. You need to decide whether you will be looking for a loan with a fixed, adjustable or variable interest rate. In order to determine, you need to know the differences between these types of interest, and know the pros and cons of the two mortgage types.

1) Adjustable/Variable Mortgage Rates

An adjustable rate home loan implies that the monthly payments will deviate along with the interest rate variation that the market dictates. Thus, if the interest rate rises on the market, you will be paying a higher installment because the portion of the payment that’s made of interests will increase.

When you complete a loan application, this type of mortgage will offer a decreased interest rate. With time the interest rate may growth or it may go down even more. As the amount you will pay depends on the variations of the market, this kind of loan is for those who are used to planning, foreseeing coming situations and preparing for them.

These types of mortgages also let you to apply for greater amounts and longer periods. This is why you need to be prepared to face many variations on the monthly payments. In any case, if something happens that prevents you to keep up with this system you can always refinance your home loan and opt for a fixed rate.

2) Fixed Interest Rates

For the whole period of the home loan you will consistently be paying the same interest rate with a fixed rate mortgage. The debt is paid in identical monthly installments. The main value you will get from this type of loan is that you will not need to worry about an increase on the monthly payments. Even if the rates charged for home loans vary in the market, you will be paying the same amount every month.

This is specially designed for home buyers that are not willing to allow monthly payments to alter after a period. Those who have a fixed income and prefer to be safe by knowing the amount of money they will be paying for the home loan for the years to come.

If you you have anxiety over the possibility of a changing mortgage payment, or you will not be able to make ends meet, then you should definitely go for a fixed rate home loan as it is the most predictable option.

In conclusion, the choice of which type of manufactured home home loan which best suits your needs must be answered according to your present financial situation, your expected income and your conservative or adventurous nature. You should also verify what experts are predicting will happen with the market in the upcoming years. Nevertheless, you should always have some savings and credit available for unexpected events. The Best way to avoid a fall is to stay away from the edge. Having enough savings can let you dismount advantage of decrease variable rates and save thousands of dollars while still being safe.

April 6, 2010 · Tagged with , , , , , ,

Finance and Refinance, Laws & News

Why to Avert a Foreclosure on your Mobile Home

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Mobile Home owners often fail to see that the consequences of a foreclosure are very unlike those of a Manufactured Home short-sale. A short sale might be one great alternative deserving serious consideration.

December 3, 2009 · Tagged with , , , ,

Finance and Refinance

Now is the Time to Buy Your First Mobile Home

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There are many reasons to buy your first home now, and purchasing a manufactured home can be more affordable than renting an apartment. The first reason to buy a mobile home is low mortgage rates. If you have good credit, and a down payment, you can get into a manufactured home for less than renting in most cities. Another reason to consider buying a mobile home right now is the state of the market. Prices on homes are hitting the bottom of the curve, many economists predict. So, if you buy now, there is a good chance that the property and home will increase in value over the next few years. Of course, it is always a good idea to invest in a home rather than rent because your money is going towards purchasing an asset.

Mobile home financing is difficult to come by compared to a year ago, but there are still options available. We can tell you in a short phone conversation how likely you are going to be approved, and at what rate. You’ve got nothing to lose by calling to find out if buying a manufactured home is a smart idea. Getting financing can be scary, but with seasoned mobile home loan experts behind you there is nothing to worry about.

August 31, 2009 · Tagged with , , , , , ,

General Info, Laws & News

Will the Home Buyer Tax Credit be Renewed?

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How does the current Tax Credit work?

The current legislation grants a one-time credit of 10 percent of the home’s purchase price up to a maximum of $8000 to first time homebuyers or those buyers who have not owned a house in the last three years.  Homebuyers can chose to claim the credit either retroactively on their 2008 return or on their 2009 obligation.  If the buyer does not owe enough taxes to cover the credit the balance will be refunded to them in cash.

How would the new Tax Credit work?

The new legislation is currently in front of the House Ways and Means Committee, the current First Time Home Buyer Tax Credit is very popular and could be extended beyond its current expiration date and greatly expanded. Congressman Coble’s is introducing the new legislation which would remove both the income restriction and the requirement that the home be a first-time purchase.

August 25, 2009 · Tagged with , , ,

Laws & News

Foreclosure’s Continue, but could be Slowing

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Around 13% of U.S. households with mortgages was in foreclosure or behind on its home loan payment during the second quarter of 2009, which puts added pressure on federal programs aimed at preventing foreclosures. However, foreclosures have slowed on the subprime loans that initially ignited the mortgage and banking crisis, loans extended to borrowers with good credit are deteriorating at a faster rate as falling home prices and mounting job losses effect more American households.

How can the situation to improve for the financial and real estate markets? There has been little reform of the housing finance system in this country. Fannie, Freddie, and the FHA still provide almost all finance for housing. Mortgage originators, the ones who make the borrower-by-borrower lending decisions, still retain absolutely no risk on the mortgages they originate. They still originate to sell, instead of selling to private investors, they sell to the government. The answer is in legislation.

August 24, 2009 · Tagged with , , , , ,

Finance and Refinance, General Info

Lenders Profit as Mortgage Market Changes

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An Mortgage Bankers Association (MBA) spokesperson said that several independent mortgage companies made extreme changes in their loan product offerings. This includes an increase in writing FHA loans, a category which increased to 45 percent of loans in 2008 from 10 percent the year before. Lenders reported that they closed an average of 56.6 percent of all loan applications.

The Fed has been providing liquidity to the mortgage market in their purchase of Mortgage Backed Securities (MBS). Between August 13 and August 19, the Federal Reserve purchased a gross total of $26.640 billion agency MBS.

The Fed purchased an average of $5.00 billion per day, up from last week’s $4.08 billion per day. This doubled the average daily originator selling, illustrating that the Fed continues to provide a generous supply of liquidity to mortgage bankers looking to hedge their pipelines of committed and uncommitted loans.

We can only hope that the evolving mortgage market swings back to more responsible lending practices, especially in the mobile home market. Manufactured homes ar very difficult to finance and refinance currently, which is a sobering fact among the retired and elderly in America, because they are the majority of Americans being targeted as “risky” by lenders.

Banks were irresponsible with loose lending practices such as “stated income,” but now they are too tight in their lending procedures. Now, there are so few programs, that the entire mobile home mortgage market is at a standstill. With their retirement only a fraction of what it used to be, retired Americans cannot even pull equity out of their manufactured homes. This is because their homes have dropped in value, and lenders look for any reason to decline their loan application.

The moral of the story is that banks were too loose, now their too tight. And America is left asking: WILL LENDERS EVER GET IT RIGHT?

August 20, 2009 · Tagged with , , , , , , , ,

Finance and Refinance

Mortgage Rates Hit 6-Week Low

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“The market is finally turning the corner after a severe three-year slump” said BMO analyst Sal Guatieri before the release. Many are expecting the fourth consecutive monthly increase in home sales. This increase would be the longest string increased home sales in five years.

Average rates for a 30-year mortgage fell to a 6-week low at 5.15%, which is increasing demand for purchases, refinancing, and new mortgages to all advance. The manufactured home market generally follows the housing market trends, but has also been known to stray.

Keep a tight watch on your mobile home financing and refinancing options by coming to our blog, and also feel free to call us at (800) 882-1999 if you have any specific questions about financing or refinancing your manufactured home. We’ve been doing this for 28 years, so we kinda know what we’re talking about.

August 20, 2009 · Tagged with , , , , , ,

Finance and Refinance

Banks Remain Tight on Lending Standards

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Lenders are Tight on Home Loans

Lenders are Tight on Home Loans

“Domestic banks indicated that they continued to tighten standards and terms over the past three months on all major types of loans to businesses and households,” the Federal  Reserve’s survey of senior loan officers said.

Looking ahead, the Fed said most banks plan to keep lending standards tighter than average levels over the past decade, but that should be expected given the reputation lenders made for themselves leading up to the subprime crisis.

This is definitely expected, however very unwelcome. These tight standards that banks now hold themselves to can only be compared to a farmer that depletes all the resources from the soil as fast as possible, then blames the grocery store for their loss in livelihood. The banks have been taking supreme advantage of the loose legislation for half a decade, and they are very irresponsible for doing so. Now, the hens have come home to roost, and the banks are acting irresponsibly in the other direction. Lenders are finding phantom reasons to decline even the lowest risk loans.

In an economy that the banks are majorly responsible for ruining, they are now proceeding to decline America by acting reactively and not responsibly. A retired American with a good bank account, credit score and income cannot get a loan to purchase a manufactured home, even though Berkshire Hatheway recently came out and said that they are a lower risk than a traditional home loan.

Banks and their irresponsible tight lending practices are sending ripples throughout an already brittle economy, and the ripples are effecting the working and retired alike.

August 18, 2009 · Tagged with , , , , , ,

Finance and Refinance

Manufactured Home Finance or Refinance: Get a Credit Report

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Credit Report and Manufactured Home Financing

Credit Report and Manufactured Home Financing

If you are considering buying or refinancing a manufactured home, make sure you get a copy of your credit report and review it for its accuracy. It is possible that there are errors on your credit report, and if they aren’t corrected before you apply for a manufactured home loan, the errors can derail the entire process.  Each year as a consumer, you can request a free copy of your credit report from each of the credit reporting agencies.   You can contact them via phone to request or on line by visiting www.Experian.com, www.Equifax.com and www.Transunion.com.  Please note, these reports will NOT provide a credit score for free, only a credit report. In order to secure a par interest rate you must have a FICO score of 740 or higher. If you are looking to use FHA financing, expect the rate to be higher than conventional financing.

This morning, we are seeing the best mortgage rates of the last several weeks.  Each time rates fall below 5%, they have not remained there for very long. The last time we saw 4.875%, it was available for all of one day!  This has been a very consistent pattern since early Summer. As such, I will caution you to not get too greedy. Can rates move lower?  Absolutely, but there is much more room above for rates to go higher. Rates move much faster upward than they move lower as lenders are reluctant to pass along lower rates. If you can lock a rate today under 5% on your mobile home financing or refinance your manufactured home loan you might want to take advantage.

August 17, 2009 · Tagged with , , , , , , , ,

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