Mobile Home Deal, Not in a Park

[Emily Thompson]

Hello,

I have an opportunity to purchase a mobile home on 1 acre of land in East Texas. This is a lake community and the subdivision has both mobile homes and SFHs. One acre lots are very desirable in this area and prices are increasing. The mobile home is 1999 double wide and appears to be in good shape (on the outside, I haven't seen the inside yet). It does not have a permanent foundation, but wheels are off and it is anchored. Additionally, I purchased a lot with a house on it that adjoins this lot. Like many others, I am having a hard time getting a loan for this property due to the mobile home. My plan is to rent it out and then maybe someday sell it and build one or two houses on it. 

1) Is this a reasonable plan?

2) Is it better to try and find a lender that will finance both (I have heard that land ag banks might do this?)

3) If I can't find financing, should I pay cash for the home (I am not excited about spending a lot of my capital on it) and then finance the land?

4) Any other solutions to this that I am not thinking of?

Thank you in advance for your help!

Emily

[Rachel H.]

@Emily Thompson You may want to check with a few mobile home dealerships. They may have a few referrals for you in terms of lenders since they work with these types of lenders all the time for their land-home packages. In the past, I've found them to be good sources of information for market research and referrals. Also, you may want to check with your local manufactured housing association to see if they have any lender referrals for you. Other avenues include local banks and credit unions. Hope that helps!