1976 Mobile On Acreage. How To Finance/insure
Hello,
I am new to this forum. We have had our eye on a 1976 (pre-hud)mobile on just shy of 2 acres. We LOVE the acreage and would eventually replace to mobile(dispite the age, it is in very good conditon). I have a couple of questions.
1 almost nobody will finance. They are unable to appraise because of lack of value on home. The land is worth less that the price by almost 1/2.
I can''t imagine how they are going to sell, No one seems to be able /willling to finance.
There must be some way. Unless people have cash.Does anyone have any ideas?
2 how about insurance.? Is that usually a problem.?
Thank you for you time..
Deborah :-?
Will the owner finance it?
The insurance shouldn't be too big of an issue...
If "almost nobody" will finance, that means someone will? Is that so bad? Probably it's paid for, so you have some leverage to ask for seller financing. Make sure the home still has the title, or you'll have problems. If it's owner-occupied, insurance shouldn't be too hard. It may be a little higher since it's a riskier structure; in a worst case, you may need to use your state's gov't run "pool," insurance which can be pricey.
How sure are you that no one else will buy it? No matter how nice the MH looks, it's nearly 30 years old and has lived longer than most similar homes. If you can handle it, you might consider waiting another month or two--winter doesn't help sellers to stay optimistic--and make a lowball offer; maybe phrase it in a way that doesn't offend the seller's efforts to keep their home looking good, but you'll probably build there and you won't be able to sell the MH for much. It's just the way the market usually is.
Thank you for your answer. I just talked to a cousin who had to insure her mobile through a govt run pool. She said she can answer more questions about that.
The reason I said most would not is because I hadn't ased one last person. I will be doing so today. I tallked to the realtor last night and we (the potential buyers) have decided to wait to make an offer. We live in an area that is way off the beaten path and it would take just the right person to buy this particular property.
I will keep reading the posts on this site. I am learning alot from you. We are so used to buying a traditional house with a traditiional 30 year mortgage so we are learning about all the ways to buy . Thank you.
Deborah
No big insurnountable problem.
I am personally involved in a number of MH/land pkg deals like this, and the way they're financed is with a buyer with good DCI (down pmt, credit, income)...the usual combo for any successful loan, right?
That buyer then puts up his DCI and buys the MH/L pkg.
And if he (and YOU) don't have the good DCI, then he has to figure out who he knows who'll trust him enough to work with him in doing this, with you, for some reasonable little piece of the pie.
I've just this week seen a classic little example of this, where a young couple with OK income, but weak credit, got a 2d D/T secured loan on their SFR for fixup purposes.
Because of their problems with the Big C, they had to go find a friend with 700+ credit to cosign. Don't know what they agreed to do for the friend, but clearly they did persuade him to be the cosigner.
"Go ye and do likewise, sayeth the sage"
John,
You are oh so helpful. Esp since I live in very close proximity to you. It helps when someone is only a county away. W
We have very good credit and will have a good chunk of money when we sell our home. Enough for a good downpayment. Unfortunately we just found out there is a divorice involved and one of them just passed away, so might be tied up. Oh well, gives us longer to work on our home to sell.
You really made things alot clearer for us.
Deborah
Nobody has brought this up yet, but why exactly are you buying the property? From what you've said so far, it sounds like a personal investment rather than a business one, so buying at a discount is not as important (though still a good idea).
Anyway, what I'm trying to get at is why do you think the property is worth the asking price? The reason I ask is because you mention that the land is worth less than the price by almost 1/2. Well, in essense, all you are buying is the land. a 1976 MH has almost no value, and would add very little to the value of the land. The water and septic would add more value than the actual home, but these should be considered when valuing the land, not the mobile.
So before you go trying to figure out how to finance, you might want to decide if it's worth financing at all.
Roger
Thank you all.
Someone just paid cash for the deal. I am not sure the land made it worth it. Thank you for all your input, I am learning alot.
Deborah070