Other types of loans?

Question

I have a single wide mobile home sitting on its own land, tied down/on a slab under contract. Could not go conventional because it’s a single wide. FHA eventually realized the house was on a well with nine other homes and this broker says it’s not doable FHA.

I called another broker and he said if the well is on an LLC there is a workaround for FHA. I went back to my real estate agent and asked her to double check if the well is on an LLC and all she said was "we cannot do an FHA loan." 🧐

Is it worth calling around to other brokers and/or mobile home lenders to see if someone has any kind of work around? Or is this deal over? I figured private lenders would want a shorter term loan than 30 months. I don’t really want that, I what day low monthly payment. Still waiting to hear if they will do owner financing. Thanks in advance for any tips or advice.

PS I was planning on living on the property with a roommate. Eventually renting if necessary. It would positively cash flow.

Kelly Beasley · Answer

Thank you @Rachel H., great ideas!

Kelly Beasley · Answer

Lol, thanks @Doug Pintarch!

Kelly Beasley · Answer

Thank you, @Doug Pintarch. I have called a couple, waiting to hear back. My curiosity is this. Are ALL loans backed by the government that are available out there, unless they are personal loans?

Or are there other lenders who do loans that, from my limited understanding of how it works, aren't backed by the gov somehow? I don't know what to call them or if there's another official name for another loan type that isn't FHA, Conventional, VA, or private.

I also wonder if my agent only says we can't do FHA because she's trying to keep my using the people she's recommended I use. She gave me three names to call to see if they could somehow wrangle a conventional loan. (But conventional won't finance a single wide, so what mysterious runaround could this be?)

Could she be getting a kickback/back scratch from her people somehow and not telling me all of my options?

I'm so frustrated at this point. I have put offers in on two properties, had inspections done on both (Traveled over 900 miles TWICE to come see the properties, too), only to find out AFTERWARDS that 1. the first property house wasn't ever permitted and can't be financed and 2. this property's well shared by 9 houses won't qualify for FHA.

Is this stuff that the agent should be checking for before I put in an offer? Or at least before I pay for inspections? I mean, who is responsible for making sure a place qualifies for financing? I have now wasted over $1000 on gas money and inspections on two properties only to find out I can't get them financed.

Should I clear a particular property with the lender BEFORE putting in an offer?

Frustrating and money wasting to say the least. I sure am learning a lot, yes, but it's costing me quite a few bucks.

Kelly Beasley · Answer

Ah yes, the portfolio loan. I remember hearing about this. So it sounds like it's worth trying some local places. Thank you @Doug Pintarch.

Kelly Beasley · Answer

Wow, now that's a creative idea, @John Laine! Thank you. I'll have to look into that one. And yes, sounding like it's pretty much going to have to be a cash-only deal. Unless someone can get it financed with a VA loan. I don't know the terms of those.

Kelly Beasley · Answer

So NOW I have found two brokers who say they can do the loan. It will be a conventional non-conforming loan. Fingers crossed.

Kelly Beasley · Answer

Oh, and for the benefit of future readers, The one who thought they could do conventional for me could not. Apparently Covid has tightened down certain restrictions, and conventional won’t go single wide, and FHA won’t go with more than four on a well. Thanks, COVID.

Rachel H. · Answer

@Kelly Beasley You may have better luck talking to a few mobile home dealerships in the area since they're in the business everyday. They may have some insight for you and a few referrals on some lenders to work with. Also, check with your local manufactured housing association. They may have a few referrals of mobile home lenders as well. In the past, I've found both to be good sources of information and referrals. Hope that helps!

Kelly Beasley · Answer

Interesting- so now I am being told by another broker that you CAN finance a single wide MH using a conventional loan. (And with this one, the well only has to be recorded under an LLC or incorporation, etc.)

I am confused now after being told we couldn't go conventional because 'they won't finance single wide homes'. Is this something each individual lender 'decides' is a problem or isn't a problem? (loaning on a single wide) Any experienced mobile home investors out there that can speak on this two-sided information from experience?

Doug Pintarch · Answer

You are correct again, @Kelly Beasley!    Now go get financed, you damned hippy chick!!  (I just read your profile...very cool!!)

Other types of loans?

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