What Effects Your Credit Score?

Posted by admin · Leave a Comment 

Everyone has a credit score, whether they know it or not. Your credit score is used by lenders to asses the risk involved with lending to you. By now, you are probably wondering  what your credit score is. Getting your credit score is very easy, and free if you cancel the service right after getting your score. One of the most popular credit score websites is Free Credit Report, you have probably seen one of their obnoxious commercials. The next question is how your credit score is formulated, which is a big secret, but we do know some of the really important factors:

  • Payment history (35%). Your score is negatively affected if you have paid bills late, had an account sent to collection, or declared bankruptcy. The more recent the problem, the lower your score — a 30-day late payment today hurts more than a bankruptcy five years ago.
  • Outstanding debt (30%). If the amount you owe is close to your credit limit, that is likely to have a negative effect on your score. A low balance on two cards is better than a high balance on one.
  • Length of your credit history (15%). The longer your accounts have been open, the better.
  • Recent inquiries on your report (10%). If you have recently applied for many new accounts, that may negatively affect your score. Promotional inquiries don’t count.
  • Types of credit in use (10%). Loans from finance companies generally lower your credit score. FICO says this is most important when there isn’t a lot of other information upon which to base a score. Although this is a good guide as to what credit scoring companies deem important, keep in mind that some companies may consider different factors.

As long as you keep on top of these five considerations, your credit score should be respectable, and when you need to get financed for a Chevy Camero, new pool and Spa, Apple computer, or  mobile home loan, you should be deemed lendworthy.

Banks Remain Tight on Lending Standards

Posted by admin · Leave a Comment 

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.

Manufactured Home Finance or Refinance: Get a Credit Report

Posted by admin · Leave a Comment 

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.

Renting vs. Buying a Manufactured Home

Posted by admin · 1 Comment 

Renting vs. Buying a manufactured Home

Renting vs. Buying a manufactured Home

How do you know what makes more sense, renting an apartment or buying a mobile home? There are many factors that come into play, and the process of analyzing can be overbearing. So, here is a short and sweet post about where to start.

Not everyone is a CPA, and knows how to calculate the feasibility of buying a mobile home over renting an apartment. So, it is important to keep things simple. It comes down to two questions you must ask yourself if you want to own a manufactured home. If so, you must qualify for a manufactured home loan? Click to apply now.

If you decide that you don’t want to own and live in a manufactured home, stop reading now. If you are interested in becoming a homeowner and investing in your future, then read on.

Does it make Financial Sense?

First, take your current rent and multiply it by 12 (months) and then multiply it by 20 (years), then multiply it by 1.25 (to loosely account for rent increases). Now you know how much you will spend on rent over the next 20 years, and have nothing to show for it. If your rent is currently $500 per month, then you will spend about $150,000 over the next 20 years.

Do you trust the Real Estate Market?

In this market, it may be difficult to see real estate as a sound investment. But if you look at the big picture, it has traditionally been very strong. However, even with the recent housing market slump there has been about a 100% increase in housing prices. This means that if your $500 rent payment was made towards a mortgage, you could have a home worth $300,000 after 20 years, rather than nothing.

Can you get Approved for a Manufactured Home Loan?

The financial market meltdown has certainly made it more difficult to get financing for a manufactured or mobile home. However, there are still lenders and brokerage firms that know how to get you approved. You do have to be a very low risk to the bank, though. You must have good credit, no bankruptcy in the past 4-5 years, a down payment of atleast 10%, and a verifiable income. Taking all of this into account a mobile home mortgage broker can configure your ratios, and you are on your way to owning your very own manufactured home.

Are Mobile Home Loans more Difficult than Real Property Loans?

Posted by admin · Leave a Comment 

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

Posted by admin · Leave a Comment 

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 – Quick Tips

Posted by admin · Leave a Comment 

Are you thinking about refinancing your mobile home or getting a loan to purchase a mobile home or a manufactured home?
Make sure the lender you are working with is Qualified to lend in your state and that they have a good standing reputation.
Here are some Important questions to ask your lender:

What licenses do you have to lend in this state?
Are you a member of any Manufactured Housing Associations in the state?
How long have you been in business?
What state are you located in?
What state will my loan be processed in?
Are You Able to Lend your own Funds?
Are You Equipped to Service Loans In-House?

Another One Bites the Dust

Posted by admin · Leave a Comment 

According to a recent LA Times article, Green prefab architecture firm Michelle Kaufmann Designs is closing it’s doors.

“Kaufmann, who worked for Frank Gehry and Michael Graves early in her career, was a pioneer in the so-called modern prefab movement of recent years. She was also one of the first architects to make a persuasive case that prefab design, which reduces construction waste and damage to building sites, among other benefits, was in a number of ways synonymous with sustainability.”

“Kaufmann’s own efforts, she said, were undermined by the economy’s rise and its fall. During the last few years of the housing boom, as she was starting out, many factories were so busy making money with conventional prefab construction that they saw no reason to experiment with more innovative designs. As the economy has soured, many of those same factories have gone out of business entirely. And lenders, who during the boom looked for excuses to approve even the most exotic mortgages, have taken on the kind of conservatism that formerly marked prefab builders.”

Although lending on mobile homes, manufactured homes and pre fab homes has tightened up, financing is still easily available to qualified home buyers and home owners. Now more than ever, it’s important to have a trustworthy, licensed lender, with a great reputation, like CAMHF, on hand.

Helpful Hints: Maintain the Condition & Value of your Manufactured Home or Mobile Home

Posted by admin · Leave a Comment 

The Manufactured Housing Institute has issued a helpful guide for Manufactured home buyers. This guide shows buyers what to expect from start to finish, when purchasing a new Manufactured Home. The guide even includes information about qualifications and information that buyers need to know when considering a Manufactured Home Loan.

Today we are sharing one aspect that was highlighted  in this guide;  Manufactured Home maintenance.

MHI believes that “All homes require a certain level of maintenance to protect your investment, maintain their beauty, and keep the home in good operating condition.

At least once a month:

Check/replace furnace filters

Clean range hood filter

Check weather stripping around door and window seals

Check AC A-coils to ensure they are not clogged

Clean vinyl floor coverings and vacuum carpets

At least twice a year:

Inspect shingle roofs for missing or damaged shingles. Vents and flashings and caulked joints should be resealed once a year or as needed

Check dryer vents to ensure they are working and free of debris and that they are not vented to or leaking moist air under your home

Check AC condensation drain to ensure it is working and not clogged

Clean out floor heat duct registers

Check the underside of the home and repair any openings in the special material that protects the home from moisture

At least once a year:

Wash exterior siding

Inspect roof; clean off debris; rinse off with water

Check exhaust fan systems

Check anchor ties for snug but not overly tight fit

Check heat tapes for proper operation

Clean/check furnace

Check/clean air conditioner

Inspect and replace, as necessary, caulking around windows, doors and other openings

Clean gutters

Lubricate window guides with a silicone spray and ensure window latches are adjusted as needed

Professionally clean carpets

Long-term absence from home:

Turn off water supply: during winter, add approved anti-freeze in kitchen, lavatory and toilet traps

Turn off water heater

Close and lock windows

Adjust thermostat accordingly for winter or summer months”

For More information, visit the Manufactured Housing Institute Website here.

Now may be a great time to refinance your Mobile home or Manufactured home, or pull out some equity, to perform these repairs and ensure that your home stays in great condition. This maintenance helps you to avoid costly damages or repairs down the road. Contact California Manufactured Home Finance for more information on accessing the equity in your mobile or manufactured home.

Manufactured Home Builder Clayton will pay mortgage if buyer loses job

Posted by admin · Leave a Comment 

According to The Daily Times, the manufactured home giant Clayton has plans to boost sales this year.

“We’re making this commitment: If someone buys a home and then loses their job because of the economic downturn, we will make payments on their home for three months,” said Kevin Clayton, president and CEO. “It won’t cost the buyer a dime.”

“We hope no Clayton homeowner ever needs this help, but we know by offering this benefit we can help ease some concerns and help more families become homeowners,” Clayton said.

The article reports that this program seems to have been manufactured with potential first-time home buyers in mind, who can also take advantage of the $8,000 tax credit passed as part of the Economic Recovery Act.

“Similar programs to help home buyers have given them a tax deduction, in effect reducing their taxable income,” said Clayton. “This program actually reduces the taxes they owe dollar for dollar over a three-year period. That’s a huge difference.”

The Daily Times reports that “Clayton’s Payment Protection Program, which will continue for 24 months, is applicable for new homes purchased between now and the end of June. If the monthly mortgage payment includes homeowners insurance and property taxes, Clayton absorbs those costs as well.

Chris Nicely, vice president of marketing, said the Clayton Homes program differs from some others that suspend payments after a job loss but add the missed payments to the back end of the loan.”

“The big difference is there is no cost to the consumer,” Nicely said. “If you happen to lose your job, even for a week, we will make three mortgage payments to help you get back on your feet.”