documents for a manufactured home loan

Documents Needed for a Manufactured Home Loan

by Learn

To make sure your loan process is a smooth and easy one, it’s important to know the documents needed for a manufactured home loan. Here’s a simple guide to help you get everything ready:

  1. Proof of Identity
  • What It Is: This is to show that you are who you say you are.
  • Examples: Must be a picture ID like a driver’s license, passport, or state ID. The ID must be unexpired. If the ID is expiring in the next 30 days – you’ll need to renew it.
  1. Proof of Income
  • What It Is: Lenders want to see that you have steady income, that will last into the foreseeable future, to repay the loan.
  • Examples: If you’re working, you’ll need to provide pay stubs from your job (usually the most recent 30 days) and W2s. If you’re receiving Social Security, you’ll need to provide your Benefit Verification Letter from the Social Security Administration (SSA) and if you’re receiving a pension, a pension statement and proof of pension deposits into your bank account. If you’re self-employed, you’ll need to provide tax returns from the most recent two (2) tax years. You should know – things like, workmen’s compensation, unemployment or short-term disability will NOT be considered.
  1. Proof of Down Payment
  • What It Is: This shows you have the funds to pay your down payment.
  • Examples: Most recent bank statements, retirement account statements, or even a gift letter from family or friends who plan to gift you your down payment funds. If you’re purchasing a manufactured home to place on land you own – you may even be able to use your land equity for your down payment – in this case a land appraisal or similar would be needed.
  1. Proof of Park Approval and Lot Rent
  • What It Is: If you’re purchasing a mobile home in a park community – you’ll have to be park approved before your loan finalizes. Your lender will also need to confirm the lot rent amount.
  • Examples: Your lender will usually have a form for the park to complete, verifying the lot rent amount and that you’ve been approved to live there.
  1. Proof of Ownership
  • What It Is: Lenders must make sure that the person selling you the manufactured home is the owner of record or that owner’s legal representative.
  • Examples: If you’re buying a manufactured home in park a community – you’ll need to get a copy of the mobile home title. If you’re buying a manufactured home on private land – a title company will usually do the legwork of verifying the seller’s ownership.
  1. Proof of Real Property (if applicable)
  • What It Is: If you’re purchasing a manufactured home on private land –  in order to be eligible for financing like FHA, VA, USDA, or a conventional loan – there must be proof that the home is real property (or real estate) and not personal property (which what a home on leased land in a park community would be).
  • Examples: This proof is usually going to be in the form of an Affidavit of Affixture filed with your state’s Secretary of State or county recorder.

Why All This Matters

Knowing what documents are needed for a manufactured home loan will make your loan process a smooth one. Tip: Make sure all your documents are up-to-date and accurate. Double-check everything before you submit it! By getting these documents together, you’ll be one step closer to owning your new manufactured home. Contact us at Midwest Mobile Home Loans today!

calculate income for mobile home loan application

How to Determine Your Monthly Income

by Learn

Determining your monthly income is an important step on the path to financing a mobile home. When you apply for financing – your income is one of the most important factors to getting approved. So, understanding how lenders calculate your monthly income is critical. Here’s a step-by-step guide to help you determine your monthly income for a mobile home loan application.

Gather Your Income Documents

If you’re a W-2 worker – start by collecting your paystubs. Select your MOST RECENT pay stubs and make sure you have 30 days’ worth. If you’re paid weekly, that means your last 4 stubs. If you’re paid biweekly, that means your last 2 stubs.

If you’re a 1099 worker or own your own business – things are a bit trickier. You MUST have 2 years of tax returns – gather your 2 most recent tax returns (specifically Schedule C – Profit or Loss from Business).

Calculate Your Gross Monthly Income

Use our income calculator to easily calculate your gross monthly income – that’s your income before taxes if you’re a W2 worker.

If you’re a 1099 worker or own your own business – find the net income, for your most recent 2 tax returns, on your Schedule C (Profit or Loss from Business) form – line 31. Take the two net income amounts – add them together and then divide them by 24. For example, if your net income (from line 31 on Schedule C) for 2023 was $30,000 and 2022 was $21,000 – take $30,000 + $21,000 = $51,000 divided by 24. The result is $2,125 per month.

Include Other Sources of Income

If you earn Social Security, or SSI or VA disability or a pension or court ordered child support – or any other PERMANENT, documentable income – then add that to your monthly income. Permanent income does NOT include unemployment or workmen’s compensation, or short term disability, etc.

Prepare Your Documentation

Organize your income documents and be prepared to provide them to your lender during the loan application process. This will help expedite the approval process.

Seek Professional Advice

If you’re unsure about how to calculate your income or navigate the loan application process, contact us here at Midwest Mobile Home Loans – we’ll help!

Calculating your monthly income for a mobile home loan is an important step in the loan application process. By getting a sense of your income and understanding your financial situation, you can increase your chances of qualifying for a loan and achieving your goal of owning a mobile home.

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black couple with wedding registry for mobile home fund

How to Put a Mobile Home Fund on Your Wedding Registry

by Learn

Today, wedding registries are changing to include creative gift ideas, like a mobile home fund. Some people who are about to get married have lived on their own in rented apartments or homes and have already gathered essential household things. So, rather than asking their wedding guest for things they don’t need – more couples are deciding to ask for nontraditional gifts – like a fund for a down payment on a mobile home.

Let’s take a look at whether chattel lenders allow gifted down payments and how to set up a down payment fund on your wedding registry.

Do Chattel Lenders Allow Down Payment Gifts?

Yes! Pretty much all chattel lenders will allow you to use gift funds for your down payment. This is good because unfortunately – down payment and closing costs assistance programs currently can’t be used to obtain a chattel mortgage. So – if you have family and friends who are willing to gift you funds towards your down payment or even closing costs – it will help you secure your dream mobile home.

Is It Ok to Ask for Money on a Wedding Registry?

Once a upon a time it might have been taboo – but in the age of GoFundMe and the like – it’s acceptable to ask your guests for cash for the practical purpose of buying a new home. It’s important though to make sure you create a wedding website or online registry that presents all of your information, makes the payment process as simple as possible and explains your situation so that guests understand.

How to Set up A Mobile Home Down Payment Fund on Your Registry

There’s a good amount of wedding sites and registries available to couples – here’s a list of a few:

The Knot

The Knot helps couples make a free wedding website with all the important details for their guests. On your website, you can create a list of gifts you’d like and combine lists from other websites. This includes the option to have different money collections, like one for buying your first mobile home.

With The Knot, you can write a message to your guests which can be helpful for couples who might not feel very sure or comfortable asking for money.

Zola

Just like The Knot – Zola allows you to create a free wedding website, combine lists with other registries, and create a cash fund.

Same as with The Knot – you can write a message to your guests explaining your need for the fund.

Joy

Joy is another option – they market themselves as having zero fees for their cash fund option. Joy allows to you add physical gifts and cash funds for a variety of needs and experiences.

How to Explain Your Down Payment Fund to Guests

When explaining to your friends and family about why you’re asking for funds for a down payment instead of having a “regular” registry – be honest and let them know why this fund will be more helpful and useful to you as a couple.

You can say things like:

  1. “Just being with us on our wedding day is enough, but if you want to help with our future home, feel free to give to our down payment fund.”
  2. “Instead of a regular wedding registry, we made a house fund to buy our first home together. If you’d like to give us a gift, you can contribute to our down payment fund.”
  3. “We’ve got all the things we need for our future home. The only thing missing is the home itself! If you’ve been wondering, we’re asking for help with our future home instead of traditional wedding gifts.”

Say it in a way that feels true to you, your personality, and your story. Everyone is different, and some people might find it easy to use an online cash fund registry, while others might feel unsure or worry about what others might think. Some people might not want to make a payment online.

Make sure to tell your friends and family that they don’t have to give a gift, and your request is for those who want to help. Money can be an awkward topic, but guests like knowing where their contributions are going.

Being honest and truly grateful is important when dealing with money gifts as graciously as possible.

Reach Out To Midwest Mobile Home Loans When You’re Ready

Once you have those down payment funds secured – reach out to us here at Midwest Mobile Home Loans and apply for prequalification. It’s the first step in the home buying process and shows agents, sellers and parks that you’re serious and have the means to purchase your dream mobile home.

 

Photo by: Md. Aftab
Source: Compass Mortgage
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How to Sell Mobile Homes in Parks

How to Sell Mobile Homes in Parks: A Guide for Real Estate Agents

by LearnMobile Home Home 101 - For Agents

Real Estate Agents or Soon to be Agents! Let’s discuss how to sell mobile homes in parks. This is your chance to learn about the unique dynamics of this niche and how to corner your local market and become an expert in the field. Let’s explore the ins and outs of selling mobile homes in parks!

The Special World of In Park Sales

To sell mobile homes in parks involves a different set of rules. Parks have a mix of homes, a close-knit community, and specific regulations that set them apart from regular homes. As a real estate agent, understanding these dynamics is crucial for successful sales.

Navigating Legal Waters

Selling mobile homes in parks involves dealing with some legal details. From park-specific regulations to lease agreements, you should be well versed in these matters. This ensures that your sales process stays compliant and avoids any unnecessary hiccups. Here are few legal things to know if you’re listing mobile homes in parks in Michigan:

  • To act as an a agent or broker for mobile homes (in parks or unaffixed to land) you must obtain a Mobile Home Dealer license through the Bureau of Construction Codes. Many parks will require you have this to list/sell in their park.
  • A mobile home in a park must have a title to be sold – the seller of a mobile home should have this in their files – if they can’t find it they’ll have to order a replacement through Secretary of State.
  • When buyers purchase a mobile home in a park – the park will require the buyer to either sign a lease agreement (to rent the lot/land) which usually last 12 months or rent the lot on a month to month basis (which usually means higher lot rent). Buyers will usually also have move in costs when buying a home in park (these costs generally include a security deposit and 1st and last month’s lot rent).
  • A mobile home can’t be moved while under a lease – and a mobile cannot be moved if it currently has a lien on title (ie. Owner has a mortgage on the home).

Building Strong Park Connections

In this field, building good relationships with park management is key. They hold the keys to important information about park rules, policies, and any restrictions. A harmonious partnership with park management can make your sales process much smoother. After you have your Mobile Home Dealer license – if you’re a listing agent – contact the park and introduce yourself, let park management know which home you’re selling, confirm lot rent, park approval process and rules for in park sales. If you’re a buyer’s agent – make sure you confirm lot rent for your client (as many parks increase lot rent on a new buyer when a home exchanges hands) and their park approval process so you can share this with your client.

Valuing Mobile Homes with Precision

To successfully sell mobile homes in parks requires putting the right price on the home using an unique approach. While traditional real estate comparisons are important to highlight neighborhood value, you also need to consider park amenities, location within the park, and the overall park condition. This detailed understanding helps you set accurate prices for maximum impact. If you can’t find any comparable home sales in the park you’re working in – try MHVillage.com – to find list/sold prices in the park or area. Do NOT use single family home comps in your mobile home valuations (that’s an apples to oranges comparison!). BTW Datacomp is an appraisal company for mobile homes – you can and should encourage your sellers to purchase a listing appraisal if you’re in doubt about value.

The Power of Community

Understanding the value of the park community is crucial. Buyers aren’t just purchasing a home – they’re joining a unique community. Highlighting the benefits and amenities of park living and fostering a sense of belonging can greatly influence buyers’ decisions.

Market Like a Pro

Promoting mobile homes in parks requires a tailored approach. Utilize online platforms (like Facebook Marketplace and Buy/Sell Group and Mhvillage.com, local events, and park-specific marketing to reach potential buyers effectively. Building strong connections within the park community can also lead to valuable referrals. Some mobile home parks have their own Facebook groups – search for these and ask if you (or your seller) can post homes for sale there.

Embracing Uniqueness for Success

Selling mobile homes in parks is a niche within a niche, and mastering it can set you apart as the go to agent for selling mobile homes in your market. By diving into the unique dynamics, you can open doors to new opportunities and excel in this specialized segment of the real estate market.

As a real estate agent, your journey into selling mobile homes within park communities can be a rewarding and profitable one. Let Midwest Mobile Home Loans be your financing partner as you take that journey!

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Mobile Home Financing vs. Traditional Financing

by Learn

Hey there! In this article we’ll discuss the differences between mobile home financing and traditional financing. Here’s a definition breakdown:

1. chattel (home only) loans AKA mobile home financing and
2. real property loans aka traditional financing (like FHA or conventional mortgages)

Mobile Home Financing – Let’s Unpack It!
Chattel loans are a type of financing for mobile homes (not attached to land). They’re a way for you to borrow money to buy a mobile home – being that the mobile home is considered personal property and NOT real estate (basically, because it’s not attached to land). Here are some things to know about chattel loans:

• Paying Back: You’ll need to pay the money back usually in a shorter time (usually no longer than 20 or 25 years.)
• Interest and fees: The cost of borrowing (called interest) generally is a bit higher with these loans (depending on your credit score and other things). You’ll usually also pay higher closing costs.
• Sales tax: When you buy a mobile home that’s not attached to land – you’ll usually have to pay sales tax – just like when you buy a vehicle.
• Roll it in: With a chattel mortgage – most lenders will allow you to add sales tax and closing costs to the money you’re borrowing to buy your home – so you won’t have to pay them out of pocket.
• Loan amount: Some chattel lenders will allow you to borrow as little as $10,000! Traditional lenders would never allow someone to borrow that low an amount.
• Don’t forget lot rent: Now, you don’t pay your lot rent to the chattel lender (you pay it to the mobile home community) BUT you do need to add this to your mortgage (loan) amount to get the full amount you’d need to pay for your home each month.

Traditional financing – Take a Closer Look!
Real property or traditional loans (like FHA or conventional mortgages) are for things that you can’t move, like a home attached to land or the piece of land itself. Compare the things below to what we talked about with chattel loans (above).

• Paying Back: You usually get more time to pay the money back, usually up to 30 years.
• Interest: The cost of borrowing might be lower compared to chattel loans.
• Tax: You won’t pay sales tax but you’ll usually have to pay what are called transfer taxes (which are monies paid to the government to transfer a deed into your name)
• More to pay out of pocket: With a traditional mortgage – you’ll have to save a good amount of money – because you may have to pay for several things in addition to your down payment – like closing costs.
• Loan amount: Most traditional lenders won’t let you borrower less than $50,000
• No lot rent, buuuut: You may not pay lot rent with a traditional home – but depending on where the home is located (is it in a condo community? Is it a townhome) – you will have to pay what’s called a HOA fee (not to the lender). An HOA fee is similar to lot rent – it’s a monthly amount you pay to the organization that manages upkeep of the complex or community where your home is at.

Spotting the Differences
So to sum it up: Mobile home financing is for mobile homes that are not attached to land, they may cost you a bit more, but you are able to roll several costs in to your loan so you won’t have to pay these out of pocket and you’ll usually have the ability to borrow less. Traditional financing is for things that stay put, like houses and land, you’ll often have more time to pay the loan back and it might cost less in interest. But you’ll usually have more money that you’ll have to pay out of pocket and you’ll be required to borrow more.

So, when you’re thinking about buying either a traditional home or mobile home – remember – if the home isn’t attached to land – you’ll have to get a chattel loan. It’s best to talk to a company that specializes in these loans – like us at Midwest Mobile Home Loans – if you’re thinking a mobile home is the way you’ll go. Traditional lenders don’t know much about chattel loans because they don’t offer them!

But no matter which loan you go for, it’s all about making smart choices and being responsible with your money. So get as much information as you can so you can make the decision that’s best for you (and your family!).

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Mobile Home Loan Pre-Qualification

by Learn

Hey future mobile homeowners! Are you dreaming of a cozy mobile home to call your own? Well, we’re here to help you take the first steps toward making that dream a reality. It’s all about getting ready for the pre-qualification process – which is basically just finding out how much money you can borrow. Let’s dive in!

Step 1: Gather Your Info
Before we get started, you’ll need to gather some important things. Don’t worry, these shouldn’t be too tricky to get. You’ll want to have documents which show things like:
• Your identification (like your driver’s license and social security card)
• How much money you make or get (like your paystubs or social security benefit statements or tax returns if you work for yourself or self employed)
• How much you have for a down payment (like your bank statements or info about people who will gift you money for your down payment)

Step 2: Talk to the Mobile Home Money People
Now it’s time to chat with the folks who know all about mobile homes and money. You can give us a call here at Midwest Mobile Home Loans and we’ll help you figure out how much money you might be able to borrow. We’ll ask you questions about how much money you receive or earn and how much you plan to put down as a down payment.

Step 3: Crunch the Numbers
After you talk to the money experts, they’ll do some math to figure out how much money you could borrow for your mobile home. They want to make sure you can afford the loan without any trouble. They’ll also look at your credit report and score – which is like a report card for how you handle money. A good score can help you get a better deal! But in general your score should be AT LEAST 550 and up. In addition – whether you’ve ever had things like installment loans on your report (basically things like a car payment or personal loan or mortgage) will be important to know – because chattel lenders require this. If you’re not sure about what’s on your credit report – pull your report for free from annualcreditreport.com and check our credit score at creditkarma.com

Step 4: Know Your Budget
Once the math is done, the money experts will tell you the magic number – that’s the maximum amount of money they might lend you. But remember, just because they say you could borrow that much doesn’t mean you have to. It’s super important to pick a monthly payment that fits comfortably in your budget.

Step 5: Start Shopping!
Now that you know your budget, it’s time for the fun part – shopping for your dream mobile home! You can look for homes that match your budget, and you’ll know exactly what you can afford. It’s like having a shopping list that helps you stay on track.

Ready to Roll!
And there you have it! The steps to get ready for a mobile home loan prequalification are pretty simple:

• Gather your financial info.
• Talk to the money experts.
• Let them do the math and check your credit.
• Find out your budget and pick a comfy monthly payment.
• Start shopping for your awesome mobile home!

Remember, this is just the start of your home-buying adventure. Take your time, ask lots of questions, and make the best choices for you and your family. You’re on your way to turning that dream of a cozy mobile home into a wonderful reality!

income needed for mobile home loan

Income Needed for a Mobile Home Loan

by Learn

Hey future mobile home owners! So, you’re thinking about getting a loan to help you buy a mobile home but you might be wondering, “Can I really get a loan? What income do I need?” Well, we’re here to break it down. Let’s talk about what you need to qualify for a mobile home loan.

Step 1: Money Talks
First things first, you need to have some money coming in over the long term aka income. This can be money from your job or other places like social security or retirement (401k) or investments (like stocks or bonds). But if you only receive things like workman’s comp or unemployment – these DO NOT count as income because they’re temporary. Same thing applies – if you receive cash only or cash under the table – this can’t be documented so it won’t count as income for loan purposes. Mobile home lenders, by law, have to make sure you have enough permanent and long term money coming in to pay back the loan. They want to be sure you won’t have a hard time making the payments.

Step 2: Show The Money
If you have a job, that’s great! Lenders like to see that you have a steady job.  They might ask you for some info about your job, like how long you’ve been working and how much you make and also proof of your income – like most recent pay stubs. Generally – you’ll need to be able to provide at least 30 days of paystubs. You won’t necessarily need to be at your job for 2 years but mobile home lenders will at least ask for your job history for the last 2 years. If you don’t have a job but are receiving things like social security, disability, child support, cash assistance, alimony – still great! These also are considered permanent and long term income. You’ll have to show proof that you receive these and for how long. How much income you’ll need to be prequalified or preapproved depends on several factors including the home price, how much you plan to put down, the minimum debt payments from your credit report, etc. Contact us to get a sense whether you have enough income to be prequalified.

Step 3: Credit Check and Debt
You’ll generally have to have a credit score of at least 550. Lender’s will look at your credit report and credit score and compare it to your income. Everyone is different in terms of how much money they earn or receive, their score, their debts (monies they owe), etc. So a mobile home lender will look at how much you’re getting in, how much money you have going out (to pay your debts), how much your loan payment will be with them and lot rent you pay to the community – to see if you receive enough money to cover it all. This formula is called your debt to income ratio. Usually – the lender will do the math to make sure your DTI is no more than 50%. In other words, no more than 50% of your income would be going to cover all your debts + new mortgage + lot rent. If it would take more than 50% of your income to cover all of that – then the lender may deny you or require you to put down a large down payment.

Putting It All Together
So, to sum it up, here are the things you need to qualify for a mobile home loan:

  • Steady Income: You need to have enough money coming in to pay back the loan and be able to show you receive that income.
    Budget: Lenders will want to make sure you can still pay for the loan after taking care of your other debts.
    Credit and debt: Usually, lender will make sure no more than 50% of your income would be going out to cover your debts and the money you plan to borrow and lot rent you’ll have to pay to the mobile home community. If it would take more than that to cover everything – the lender may deny you.

Get Ready to Move In!
Getting a loan for a mobile home is like putting the pieces of a puzzle together. Once you have these things in place, you’re on your way to qualifying for a loan and making your dream of owning a mobile home come true. Remember, it’s important to be honest about your income and your financial situation. That way, you can find a loan that fits just right for you.


Give us a call at Midwest Mobile Home Loans and start the application process now!

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