Let us assist you in obtaining financing that best suits your needs. We understand that each situation is unique. There are a few key factors that influence financing such as: How your home is classified, and record; your credit score (Also referred to as FICO score, and available lending. We encourage you to call us, or stop by our showcase of homes to discuss your unique situation.
How Your Home is Classified and Recorded
Manufactured home as Personal Property: Personal property is also referred to as “chattel” property. A manufactured home would typically be classified as personal property if its not placed on a permanent foundation. The homeowner will receive a title instead of a deed to the home. In some instances it is preferable to classify a home as personal property. For example, if the home will be sited on leased land, or if for some reason the property owner doesn’t want the home attached to their deed.
Manufactured home as Real Property: A manufactured home placed on a permanent foundation becomes part of the deed on the land where it is sited; it becomes real property. A 433 form is recorded with your county assessor’s office, which is then sent to HCD (Housing and Community Development), notifying them that the home was placed on a permanent foundation, and will not be titles as personal property.
Modular home (can only be classified as real property): All modular homes are classified as real property because they are built to specific, local building codes. There is no difference between a stick-built home and a modular home in regard to lending, or its classification.
Your credit score
It’s important that you know your credit score. Improving your credit score can help you secure more favorable loan terms and a lower interest rate on your mortgage. It can also save you tens of thousands of dollars over the life of your loan. Therefore, it is of utmost importance that you review your credit report for errors or find areas to improve your credit score.
Your credit score may commonly be referred to as a FICO Score. It has a different name at each of the big 3 credit reporting agencies: Experian, Equifax, and Trans Union. All of these scores, however, are developed using the same methods by Fair Isaac and COmpany, and have been rigorously tested to ensure they provide the most accurate picture of credit risk possible using credit report data. FICO credit scores have a 300–850 score range. The higher the score, the lower the risk. But no score says whether a specific individual will be a “good” or “bad” customer. Your credit score is one of many factors a lender will consider when determining the terms of a loan.
Until recent years obtaining credit reporting information was mystifying. However, in July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act created the Consumer Financial Protection Bureau (CFPB). The CFPB consolidates most Federal consumer financial protection authority in one place. The consumer bureau is focused on one goal: watching out for American consumers in the market for consumer financial products and services.
According to the CFPB, you don’t have to pay for a credit report. Each person is entitled to one FREE credit report per year, by each of the big 3 credit reporting agencies. Be cautious of websites that claim to offer free credit reports. A number of these sites will only give you a free report if you buy other products or services. Other sites give you a free report and then bill you for services you have to cancel. The CFPB website is an excellent and objective source of information. Visit CFPB at: www.consumerfinance.gov
To get your free credit report as authorized by law, the CFPB recommends you go to AnnualCreditReport.com or call (877) 322-8228.
Lending has changed dramatically in recent years. When the housing bubble burst lending came to a virtual halt. Now that things have stabilized we have observed that lenders are becoming more flexible day-by-day.
According to Dan Green, mortgage market expert, and author of blog The Mortgage Reports, “According to a recent Federal Reserve survey, nearly one quarter of U.S. mortgage lenders eased mortgage loan approval standards during the second quarter of this year.” In addition, investor overlays, mortgage approval standards that are enforced by a bank, but not required by the government, have been loosening as well. As an example: For an FHA loan the government will allow FICO scores of 580, or even no FICO score at all from mortgage applicants. Yet some lenders, via an investor overlay, will require a 620 FICO score at minimum.
Mr. Green’s blog offers the latest information on finance and lending in a very clear and straightforward manner. Dan Green reports: http://themortgagereports.com/14969/usda-loans-home-mortgage
Sterling Home Showcase maintains business relationships with several lending institutions. We encourage you to call them to discuss your financing options:
Land Home specializes in manufactured housing on permanent foundations. They will do interim-construction loans, which fund the project in stages, such as: permit fees, land purchase, site improvements, and home purchase. Once your home has been finalized (project is completed, and final inspection has been performed), Land Home will facilitate the transfer to a final take-out loan.
Company Website: www.lhfs.com
Richmond Chester, LHFS Loan Consultant
Phone, (800) 241-5263 ext. 130
Country Place Mortgage is dedicated to finding you the best loan for your modular, site-built, or manufactured home. They offer 24-hour pre-qualifications to get you started, and offer construction, FHA, USDA, conventional, chattel and non-conforming loans.
Company Website: www.countryplaceloans.com/chuck-swegles/
Chuck Swegles, Sr. Loan Officer, CA
Phone, (480) 397-9482
Mountainside Financial specializes in financing manufactured homes. They are a not-for-profit credit union. When you obtain your loan through Mountainside, you will also benefit by becoming a member of SACU, San Antonio Federal Credit Union. Mountainside will gladly provide you with a free quote for your new or used home, on owned land, leased land or in a park. They also provide homeowners insurance and extended warranty service plans.
Company Website: www.MountainsideFinancial.com
Phone, (877) 475-6852