With mortgage rates continuing to rise and the cost of real estate at a record high in most of the United States mobile home Buyers are in need of different ways to pay for their mobile home within the greater Sarasota Florida area.
Where can a mobile home Buyer go to get financing for a mobile home on leased land in Florida?
Does financing even exist?!
This is an important topic to discuss but first we need to fully understand what type of mobile home we are looking to finance so we can best understand the financial obstacle that needs to be overcome.
Mobile homes in Florida that are located within a mobile home park where the owner of the mobile home pays lot rent are viewed as and taxed as personal property within the state of Florida.
The sale and purchase of these dwellings have titles associated with them and not deeds like traditional single family homes do.
If this sounds quite a bit like the Buyer is purchasing a vehicle then you are correct!
Since this purchase is unique to many folks, we are here to give you the 3 most common ways a mobile home in the greater Sarasota Florida area can be financed below.
Buying a mobile home on leased land in a form of cash is by far the most common way to buy. When we say cash we are not referring to physical dollar bills, but rather cashiers checks or money orders. This type of purchase amounts for over 90% of all home sales state wide and is one that is often preferred by the Seller of the mobile home.
Traditional mortgages your major lenders will not lend on a mobile home in Florida when it is located on leased land. The reason is because these homes do not qualify as real estate because the home does not include the land in the sale of the property. If you are looking at obtaining a mortgage for your mobile home purchase you will need to go to a third party mortgage underwriter who specializes in mobile home loans that with properties located on leased land.
3. Seller Financing
It is not uncommon to encounter a Seller who is willing to play banker with you as a Buyer. Here, the Seller will require some type of down payment to move in to the property and monthly installment payments that will be credited towards the remaining balance of the home. Although this is not the most common financing method we see it is certainly one to inquire about from the start to see if the Seller is willing to work with you on a payment system.
One of the many great things about buying a mobile home on leased land is that there are several different ways to purchase and move in to your new property that are not normally available to single family homes.
Having several different options and being educated in all of them will certainly put you ahead of the curve when looking at buying your new mobile home!
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.