Financing property with mobile home

[Tommy Sessions]

Does anyone have experience buying property with a trailer house on it? I’m looking to purchase a lot with a house and trailer house on it. We would pay cash initially but do a cash out refi after renovation just curious if anyone has had experience with getting banks to loan on the property with a trailer on it. The trailer is not on a foundation but has its own separate power pole. Thank you

[Ashley Cash]

In order to get funding for a lot with a trailer, the trailer must have the wheels removed & be fixed to the foundation. You also need to make sure the trailer was deeded to the land. Many first time buyers do not realize a trailer is personal property until it has been released and deeded to the land making it real property. You can't just buy the property and assume you are buying the trailer too. They are actually 2 separate sales until the trailer is "fixed" to the real property & deeded over. This is done through the Department of housing & urban development. Your Title Co can give you the docs that need to be signed by the Seller and Buyer and filed with HUD to effect this transfer.

Once the trailer is part of the “real” property, some commercial lenders will lend on it if the trailer is less than 10 years old.

Your best bet is always to find a private lender to finance it for you. If your plan is to rent the house or owner finance it, you can either pay lender fixed PITI payments or do a cash flow split over time with shared appreciation when sold. Your options are endless with private lenders and very limited with commercial lenders.

Hope that helps!