Manufactured Home Mortgage Loans / Financing:
Whether you want to live in it yourself or rent it out to tenants, you have options. Alternative lenders are more interested in the equity involved than your credit score or any other metric. The amount of equity available in the manufactured home will generally drive the decision. For example, if you’re buying a $150,000 manufactured home and have $20,000 to put down, and also own land value at $100,000 in which the RTM will be secured. Once a new appraisal is completed the value of the RTM and land would likely come in at over $300,000. In simple theory you would begin your Manufactured Home Mortgage Loan with $150,000 in equity and increase it with each monthly payment. The manufactured home lender is concerned with what would happen if you went into default and the house had to be sold. In that instance, the appraisal would indicate whether having over $150,000 in equity; therefore a very secure investment for a private lender.
In some cases you can get an interest only manufactured mortgage home loan while you either save up the rest of the balance to pay the loan off at the term, or you can amortize the home for up to 30 and even 35 years. Obviously, you’re paying a lot more over time because of the added interest expense, but if you can take advantage of prepayment privileges that some lenders offer, you will end up ahead of the game.
If you’re looking at putting your manufactured home up in a rural community, be aware that most alternative lenders require an LTV ratio of 55% to 65% depending on location, although in some cases it can go as high as 70%.
If you already own the land and just want to buy the home itself, Amansad Financial has some connections to lenders who will simply provide a cash take out on the land to be used to purchase the RTM. Again, equity is the driving force in such a decision.
Advantages to building a RTM manufactured home:
There are some advantages to building an RTM manufactured homes rather than having a site-built home built on your land.
Financing For Manufactured Homes
Amansad Financial has built relationships with a number of lenders who finance RTM home purchases. Give one of our alternative financing specialists a call, and we can connect you with the best lender for your situation.
(Amansad Financial does not provide financing on stand-alone Ready to move manufactured homes without security from existing land.)
Amansad Financial Process
Application sent to applicant(s)
Application returned & reviewed
Appraisal Completed & Commitment Issued
Commitment returned & sent to DLGN
Commitment signed by DLGN & instructed to Lenders lawyer
Most Other Brokerage Firms
Applicant sent to applicants
Applicant returned & reviewed
Applicant sent to 1 private lender for underwriting
Underwriter sends to Lending Committee for review
Commitment returned to brokerage firm if approved. If not approved, go back to step 3 with new lender
Commitment Issued by Brokerage firm to applicant(s) with summary of terms and conditions
Commitment returned to brokerage firm
Commitment sent back to Private Lender by Brokerage Firm
Lender Committee completes final review
File Instructed to Lenders Lawyer for closing provided key conditions are satisfied by applicants.
8 TOP REASONS TO USE AMANSAD FINANCIAL PRIVATE LENDING SERVICES
1. Fast & Efficient
Amansad Financial has a large DLGN (Direct Lender Group Network) that will fund mortgages throughout select provinces in Canada and will generally provide a response within 24 to 48 hours. Our process is generally 50% faster than most other competitors. From the initial assessment to closing with the lawyer, our transactions move extremely quickly.
2. Private Lending Expertise
Amansad Financial specializes in providing great insight and solutions for customers that do not qualify for traditional bank mortgages. A high majority of the customers we assist have either bad credit and/or simply require a fast mortgage.
3. Extended Lender Relationships
In addition to the DLGN, Amansad Financial also has established relationships with numerous MIC (Mortgage Investment Corporations) across the county that are able and willing to fund large amounts with fair terms.
4. No Upfront Costs To You
Amansad Financial does not charge an upfront fee to complete an initial review and assessment. We do not collect any monies direct from our customers. All applicable fees are deducted from the proceeds of the mortgage and completed by the lawyer.
Note: A Commercial Mortgage Application may be subject to a Letter of Engagement and a Retainer Fee after an initial review of the file.
5. Independent Legal Advice
Amansad Financial requires that all our customers get ILA (Independent Legal Advice) on all mortgages.
6. Transitionary Credit Improvement Services
In Cases where private lending is required primarily due to bad credit, we have strong relationships with 3 rd Party Credit Improvement Companies that will provide you the tools to improve your credit so that you can get back to traditional financing quicker. Private mortgages are not meant to be long term. A Private Mortgage is a means to get you from point A to point B.
7. Transitionary Mortgage Professionals
Amansad Financial Services has partnerships with excellent professionals within the brokerage firm; Brokers for Life Inc. They will be available to assist you to transition you from a private mortgage to a traditional or semi-traditional mortgage before your mortgage renewal.
8. Ongoing Communication
Even after your private mortgage is in place, Amansad Financial will stay connected with you and always be available to address any questions.
If you’re going to take out a private mortgage, you’re starting a relationship with a lender that will work a little differently than what you can expect from a bank or other traditional lender. Let’s take a look at some of the key differences, so you’ll know what you have in store.
Most people take out a private mortgage to get started on home ownership while they’re still repairing their credit. Private mortgages generally have short terms (often one to two years) and sometimes just allow interest-only payments. Private lenders do not have to renew mortgages when the term expires, so you want to keep your options open by making your repayments on time. Your credit score will improve (increasing your chances of a transition to a bank or other traditional lender at renewal). If you realize that you need to adjust your withdrawal date for a particular payment, give your lender at least a week’s notice.
If you change employers during the term of a private mortgage, there are no requirements mandating that you update that information. However if you do provide that update, you strengthen your relationship with the private lender, showing that you are serious about bettering your financial situation. Even if you haven’t notified your private lender of the change, that will be a requirement for extending or renewing the loan in many cases.
Improving Your Credit
If you took out a private mortgage while you intended to improve your credit, there are improvement counselors who can help you get that score up. The purpose of this is to help you qualify for a bank loan when the private mortgage term expires – which will save you tens of thousands of dollars over the amortization of the entire mortgage.
Obtaining New Credit
Try to avoid opening new lines of credit, and keep your credit inquiries to a minimum during the term of your private loan. These activities can affect your score adversely, which definitely will not help you when it’s time to shift from a private lender to a bank or traditional lender.
The Value of Communication
Remember – a private lender is entrusting you with a great deal of capital. The clearer your communication is, the stronger your relationship will be. Private lenders are much more willing to work with borrowers who are honest and upfront.
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