buying a second home, with land
- Thread starter bueller
- Start date
bueller
Moderator
Got kicked in the balls by the bank earlier this week when they called to say that they wouldn't be able to give any appraisal value to the manufactured home on the property. They will not loan on anything "mobile". I explained the legal difference between mobile vs manufactured and that per the state and county definitions that this home is considered to be on a permanent foundation and it is taxed as such. They won't budge. They want to loan a certain percentage of the appraised value of the land, garage, and even the shed, but not the mobile. That means many more dollars down for us but we can swing it if they appraise it at what they estimated they would. Waiting to find out their actual appraised value now.
Tree Spud
5 year old buck +
Check with the county tax assessor. See if they are including the mftrd home as a part of the property tax value. That may sway the banks thinking.
so the property has a mobile home on it or manuf home?? The bank is right. zero value. Make sure to understand what the property is zoned in and how it could change. If the SEV of the property is locked based upon age or classification of property it could jump based upon the sale. I know in Michigan anytime a property changes hands it goes to the SEV, which could be significant.
Also... the tax assessor will have ZERO to do with determining the value of the mobile home. My only argument would be with the bank would be securing the property on one note and putting the value of the mobile home on a 5 year note. I would think they would agree to that method of financing. Mobile homes are zero value to a bank.
Also... the tax assessor will have ZERO to do with determining the value of the mobile home. My only argument would be with the bank would be securing the property on one note and putting the value of the mobile home on a 5 year note. I would think they would agree to that method of financing. Mobile homes are zero value to a bank.
Tree Spud
5 year old buck +
He stated that it is a Manufactured home, not a mobile home ...
West Branch
5 year old buck +
I was talking to someone about similar homes recently. Isn't a manufactured home basically a mobile home that was built after 1976 to higher standards? Even though they may be on a permanent foundation I think they can still be moved with some work. I think that some people think of manufactured homes as modular homes which can be much different.
manufac... glue together.. pre fab.. what ever you want to call it. It's NOT stick built on site. The "home" arrives via "mobile" and it's Placed on the foundation. The bank views that as "mobile". Zero value or LOW value. They won't secure a note to most of them or if they do it's for a VERY short period of time and usually they need collateral to secure the lien.
Not a banker just went through all this when I built my camp, which was stick built. ONce I heard the bank didn't put value on them, I dropped the idea.
Not a banker just went through all this when I built my camp, which was stick built. ONce I heard the bank didn't put value on them, I dropped the idea.
bueller
Moderator
Yep this manufactured home is definitely part of the property tax value however even with this being known the bank doesn't want to touch it. On the plus side if we pull together the large down payment our monthly payment will be considerably lower.
bueller
Moderator
There is a nice mix of young and old timber but not wanting to do a cut anytime soon. If it was a park like setting we would probably be doing this. Great idea though, thanks.
bueller
Moderator
Spot on. 1976 was the last year "mobile" homes were manufactured. They are now called manufactured homes and are built to HUD standards. Bank is afraid someone could free it from the foundation, put the axles, wheels, and tongue back on and pull it away. Complete BS but it is what it is.
Tree Spud
5 year old buck +
Ummmm ... there are more pre-fab homes being built today than "stick built". Two or three of my home builder buddies are building 4:1 in pre-built vs stick.
If it is considered a taxeable improvement on the property, the bank must consider ... or the bank has issues.
Tree Spud
5 year old buck +
Bueller ... are you dealing with a local bank in the community you are trying to buy the property in or an out of town bank?
bueller
Moderator
Badgerland Financial. Not your local small town bank but they are supposed to be known for loans of this nature which is what attracted me to them. They told me that if it was a double wide on a slab foundation they would've given it some value, but because this is a single wide nadda .
M
MoBuckChaser
Guest
I go through this with potential buyers all the time. Banks do not want to loan money on a house that has a title card from the DMV. Go to GreenTree Financial. They specialize in these types of loans, but you WILL pay a higher interest rate. Most Trailer homes in the trailer parks are financed through them. Good Luck!
Also, get pre qualified from a lending institution before you make an offer on any property. That letter to the seller, means you are ready to close, very important! I just had another "dreamer" not a buyer, get shot down at the bank after telling me how good his credit was and a loan won't be any problem. Good credit means nothing if you don't meet the banks criteria for making the payments. Once again, Good Luck!
bueller
Moderator
I was pre approved for well over the purchase price and the loan was never going to be anywhere near that amount. Even now the bank has no issues with our credit or ability to make payments. The problem surfaced when the appraiser for the bank stated that she was not able to give any value to the home and the bank agreed with her.
Hopefully like I mentioned before, the appraisal on the land and garage gets us up to the estimated value they mentioned. If so we can swing it and will be going forward with the purchase. Hey money in the bank isn't doing us any good anyways right.
M
MoBuckChaser
Guest
Pre "Approved" to find out how much you can borrow and make payments on, is not the same as getting pre "Qualified" to purchase a property, within the banks restrictions. When you get pre qualified, the bank will tell you what properties you can and can not purchase to be able to use there money. Thus ending the wasting of everyone's time! Sorry just the facts. I hope it works out for you. The waiting game sucks for all parties!
Tree Spud
5 year old buck +
Sorry, the banks will not tell you what properties you can buy. They will tell you borrowing "ability". They will tell you what you are qualified to borrow based on assets, credit rating, and income. They will look at your debt:equity ratio and ability to provide collateral based on the loan you are requesting and the risk it presents.
Once you present an item you want to borrow against, they will evaluate it's value. Realize that banks differ in how they go about this. Some are into adding debt, some are looking to shred it.
Many banks these days are themselves over extended on their D:E ratio and are looking for risk free loans. Has nothing to do with the borrower.
I would look for a local community bank. They are usually more solvent and understand the local economy, real estate market, and need to move money and property. Usually they know they have to help those who want to sell, so they can pay off a mortgage, by providing financing to those who want to buy.
Bueller ... good chance this bank is trying to add a positive asset to their base by forcing you to put more cash down than you need to. I would shop around ...
