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What banks loan on mobile homes that are located on leased land in Sarasota, Florida?

Is it even possible to obtain financing for a mobile home when you are buying the home, but not the land as well?

We were recently confronted with a Buyer who was interested in several of our listings. This buyer had gotten park approval from several local parks in the Sarasota area and was looking to purchase a mobile home using traditional financing instead of making a cash purchase.

After working with the Buyer for several days, showing them nearly a dozen properties, we finally were able to narrow them down to the one they wanted! I decided to contact the loan officer within the lending institution that the buyer was using to see what I could do on my end to help with the loan process.

Here’s what I found out.

Lending is very hard to come by on a mobile home where the land does not come with the home.

Mobile homes with leased land in the state of Florida are viewed and taxed as personal property, not as real estate.

This is the exact way a vehicle is taxed as well.

Lending agencies will not lend on any mobile home that is older than a 1976 model. The reason why the year 1976 is such a big deal in the mobile home industry is that in that year, HUD came into the manufactured home industry and began adding regulations to all mobile home manufacturers making sure that they all built the homes to a set safety standard.

Mobile homes that are older than a ’76 will need to have both, a home inspection and a mobile home four-point inspection completed before the funding of the home.

banks loan

Coachman RV Resort

The Buyer identified a home that was older than a ’76 and ahead and ordered the inspections that were required by the lending agency. Upon the completion of the home inspections, there were a handful of repairs that needed to be addressed in the report. The lending agency required that the buyer have these fixed and provide receipts and photos showing that the work had been done. This agency stated that even after the repairs were done and proof showing them that they were done, they still may not land on the mobile home as the home had previous damage.

So, is funding for mobile homes on leased land available through traditional financing options? Yes, it is, but get ready for tons of hoops to be jumped through to obtain financing. And even if you can do all of this, the lending agency may not fund the home in the end.

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 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 before 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.

Guys, 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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