Loan Types
Purchase
When you buy a new or used manufactured or mobile home, you will usually need a loan for part of the purchase price. You will be asked for a down payment that can range anywhere from 10% to over 40% depending on the age of the home, your credit history, and your income. There are two sources of financing available—Private and Institutional (Banks). If your FICO score is above 650 and you have been on the same job for at least 2 years, then you will probably qualify for the lower interest rates that a bank can offer (generally from 8% to13%). If you have some dings on your credit and your FICO score is below 650, that doesn’t mean you can’t get a loan. You will need more down payment and can expect to pay as much as 16% interest. The length of the loan is from 10 years to 25 years—shorter for older homes and longer for newer homes.
Refinance
If you would like to reduce your interest rate to get a smaller monthly payment or want to convert some of your equity to cash, then you should consider refinancing. The maximum loan-to-value is usually 70% based on today’s market value, not what you paid for your home. The qualifying criteria are the same as for a Purchase loan.
Debt Consolidation
You can borrow against the equity in your home to pay those medical, school, or credit card debts that have been piling up. A debt consolidation loan is similar to a Refinance, except that the debts are paid by the escrow company. You don’t actually get the money in your hands. The debts are paid for you. Sometimes there will be extra money left over for you. Because the interest rate on your loan is often lower than the interest rate on your credit cards, your monthly payment might actually go down. And the interest that you pay on a loan secured by your home may be tax deductible.
Bridge Loan
Sometimes a borrower’s credit score is just below 650. Or maybe they haven’t been on the job for two years. In this case, we can provide a Private Funding Loan at a higher interest rate until you qualify for a Bank Loan. Maybe it will take a year or two, but you will be able to buy that home that you want today. We will refinance you to a lower interest rate in a couple of years. This is a long-term solution to good credit management. Because a Private Funding Loan never has a prepayment penalty, this is a very cost effective way to increase your credit score and reduce your total monthly payments.
Inventory Financing
Flooring loans are available for manufactured home dealers in Southern California. These loans can be used for the purchase of homes from the factory. These convenient short-term loans can help a dealer better manage their cash flow while expanding their inventory.
|
