With the increased prices in real estate running wild throughout the country, we are now starting to see the dramatic rise in mobile home prices throughout the Sarasota Florida area as well.
Financing a mobile home may be more difficult than ever before, as banks are becoming stricter on their loan requirements. Those looking to purchase a mobile home must now provide proof of a steady income, and the total amount of the loan must now be insured by a bank or other financial institution.
Additionally, buyers must also demonstrate that they have at least a 20% down payment set aside in order to secure the loan. This is proving to be a huge obstacle for many potential buyers as they attempt to break into the market and find their perfect mobile home. With the rising prices of real estate, it is becoming increasingly difficult to find an affordable mobile home that fits within a reasonable budget.
With the rise in mobile home prices starting to emerge in the Sarasota Florida region some Buyers are just now starting to get priced out of buying in this hot mobile home market.
We, here at The Mobile Home Dealer specialize in selling one product, mobile homes on leased land within mobile home parks.
When a Buyer buys a mobile that is located on leased land then, in the state of Florida, they are technically buying personal property and not real property as the Buyer does not own the land that their home sits on.
This type of purchase is viewed and taxed in the same way a vehicle is purchased in Florida.
The reason why this is important to note is that, when buying a mobile home on leased land, many traditional loan avenues are not available to the would-be Buyer.
Most traditional lenders will loan on a mobile home if the mobile home that is being sold includes the land that the home sits on. The reason for this is that the lender can then justify that they are lending on real estate and not personal property.
When potential Buyers look for lending opportunities lenders may be shy about lending on mobile homes that do not have the land attached as the lender tends to think that the home can be picked up and moved at any point in time to any location the Buyer wants to take this.
This is simply not true.
The reason for this is that within the state of Florida, a mobile home can only be permitted to be moved if the home is twenty years old or newer.
Most of the homes in the greater Sarasota Florida area are quite a bit older than this but the lender does not care, their rules are their rules.
So with many of the traditional funding routes dried up, how can a mobile home Buyer purchase a mobile home on leased land if they do not have the cash for the purchase?
The answer is simple, third-party financing companies.
Currently, there are around three different companies that will lend on mobile homes that reside on leased land throughout the United States.
Most of them will require a certain amount as a down payment and a home inspection to be completed.
In our experience, most of these lenders will look to lend on mobile homes that are the year model 1976 or newer.
While most mobile home purchases that are on leased land are cash purchases it is important to know that the Buyer may have financing options through these outside lending companies in order to still be able to purchase their new mobile home in the Sarasota Florida area.
There are also other options for buyers that don’t have cash like chattel and personal loans.
The Federal Housing Administration also offers mobile home loans through its mobile home loan program. This includes Title I and Title II loans.
A Title I loan can be used to finance the purchase of a new or used mobile home or refinance a mobile home purchase. Lenders can offer Title 1 mobile home loans even if the mobile home sits on a rented lot. There is, however, a maximum loanable amount of $69,678 for mobile homes only without the lot, and $92,904 for mobile homes with the lot.
Title II loans are applicable only for mobile homes with the lot, have a minimum floor area of 400 square feet, and the house must be constructed after June 15, 1976.
Although there are available loan programs for mobile home buyers, having said that, financing a mobile home has limited options than traditional homes. It is therefore recommended that being financially prepared is always the best thing to do before deciding to buy a mobile home. Many mobile home buyers prepare two to three years prior to buying a mobile home. This means that they are doing their best to save money within these years before they move forward to purchase their new home. They may not save enough money to pay the full cost of the mobile home but at least they have money for a bigger downpayment. Others also take private personal loans like borrowing from friends, family members, and relatives.
While we at The Mobile Home Dealer, are not loan brokers or any type of financing experts, we do suggest Buyers look at this route should their cash budget not work in the rising mobile home buying market.
The Mobile Home Dealer are licensed mobile home broker in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, don’t hesitate to get in touch with us by clicking this link. You may also visit our Facebook Page and send us a message.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
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