Have you decided to take the plunge and purchase our new mobile home within the greater Sarasota Florida area?
If so, then great!
Before you move any further ahead we, at The Mobile Home Dealer, would suggest you are knowledgeable about how the mobile home that you are planning on purchasing will be paid for.
Sounds silly, we know, but many times Sarasota Florida mobile home Buyers are not aware of the ways mobile homes on leased land can be purchased.
Mobile homes that are located within mobile home parks in and around the Sarasota Florida area are viewed as and taxed as personal property and not real property. What that means is that the mobile home you may be looking at could very well follow the same purchase process of that as a vehicle and not a traditional stick and brick home.
In Florida, since the mobile home is on leased land and viewed as personal property then many traditional financing options will not be available to the Buyer.
The reason why is that many traditional lenders will only lend on a mobile home in the Sarasota Florida area if the land is included in the purchase, if not then more than likely they will not approve the loan.
Lenders usually want to see the land included in the purchase price and not on a leased land because, whether accurate or not, they tend to believe that if you default on the loan then you could trailer up your home and hit the road leaving the lender with no way to obtain anything back from the money they lent you on the mobile home.
To further complicate this belief, in Florida, mobile homes need to be 20 years old or newer to legally obtain a transportation permit. This means that if the home you are buying is older than 20 years old it can not be legally moved from where it is currently sitting making the concerns the lender has that much more obsolete.
Regardless of these facts, nearly all traditional lenders will not lend on a mobile home when it is located on leased land.
Currently, there are a handful of larger third party lenders that will lend on a mobile home when it is located in a mobile home park on leased land. These lenders are referred to as third party lenders.
Third party lenders have different credit score requirements, down payments and loan terms then traditional loans do and vary quite a bit from each third party lender.
Another way to look at getting a mobile home on leased land financed is through seller financing. This is the method used when the Seller of the mobile home acts as the bank and loans the amount owed on the home to the Buyer themselves. When considering this option always look to make sure you understand the full loan limits that Seller is willing to lay out so that there is no confusion as to what is owed to who and when the payments are due.
When looking at buying a mobile home on leased land in the greater Sarasota Florida area cash purchases are the most common method of payment but if you are in the market for financing be sure to understand exactly what options there are and how they can be utilized.
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.