Have you decided to purchase a mobile home within the greater Sarasota Florida area? If so, congratulations! Mobile homes offer significant cost savings—sometimes up to 40% compared to traditional homes—depending on whether you choose a single, double-wide, or triple-wide model.
Before moving forward, it is important to understand how your mobile home will be financed. Many buyers are surprised to learn that mobile homes on leased land are considered personal property rather than real property. This distinction affects the types of lending options available.
Understanding Traditional vs. Non-Traditional Lending
Most traditional lenders prefer to finance mobile homes only if the land is included in the purchase. When the home sits on leased land, banks are hesitant because, theoretically, a borrower could move the home and leave the lender with no recourse. Additionally, Florida law requires mobile homes to be 20 years old or newer to obtain a transportation permit, which mitigates some of the lender’s concerns, yet many traditional lenders still refuse loans for leased-land homes.
Third-Party and Seller Financing Options
Currently, third-party lenders provide financing solutions for mobile homes on leased land. These lenders vary widely in credit score requirements, down payments, and loan terms. Alternatively, seller financing offers another viable option. In this method, the home’s seller acts as the lender, providing a loan directly to the buyer.
- Pros for Buyers: Faster closings, flexible down payments, and an option for those who cannot obtain bank financing.
- Cons for Buyers: Higher interest rates, possible due-on-sale clauses, and balloon payments after several years.
- Pros for Sellers: Ability to sell “as-is,” potential for better returns on investment, retention of title if the buyer defaults, and faster sales.
- Cons for Sellers: Regulatory restrictions like the Dodd-Frank Act, risk of buyer default, and potential repair costs if the property is returned.
Making an Informed Decision
When considering how to finance a mobile home in Sarasota Florida, cash purchases remain the simplest method. However, understanding third-party and seller financing options is essential for buyers who need financial assistance. By knowing the available options, you can confidently navigate the purchasing process while avoiding unnecessary complications.
This is Mark Kaiser with The Mobile Home Dealer, helping mobile home buyers and sellers get to a better place in life.
See Also:
- 3 Things You NEED To Know Before Renting Your Sarasota Florida Mobile Home!
- Why Are Fences Not Allowed In Sarasota Florida Mobile Home Parks?
- 3 Reasons Why Sarasota Florida Mobile Home Lot Rent May Go Up Each Year!
- What Are Land Owned Mobile Home Parks In Sarasota Florida?
- Is It Possible To Finance A Sarasota Florida Mobile Home?