Frequently Asked Questions?
Try our FAQ search!
What is a "BANK REPO" manufactured / mobile home?
[A
bank "REPO" (repossessed) manufactured / mobile home is a home that
the registered owner (the buyer/borrower) could not full-fill the
mortgage payment so that the legal owner (the bank/lender) has to
repossess the home. The process is very similar to foreclosing a
real estate property; Manufactured homes are personal properties
therefore the term "repossessed" is used instead of "foreclosed".]
Is purchasing a bank REPO home any different with buying regular
listed homes?
[To
the buyer, buying a bank REPO home is no different with buying a
regular home listed on the MLS listing, mobile home board listing,
or just listed by a real estate / mobile home professional. You can
either get a loan or pay cash for it. Basically, it's considered
buying a pre-owned home. The only noticeable difference is that bank
REPOs are always vacant/ready-to-move-in and usually, not always,
renovated.]
What are other costs & fees associated with the purchasing other
than the price of the REPO home? Do I have to pay for them out of
pocket or can I finance them as well?
[Buyer needs to pay
for the closing cost including escrow fees & other miscellaneous
fees. All the fees will be detailed on the escrow instruction prior
to close of escrow. A sample of estimated fees can be provided
before committing to buy. If you are financing rather than paying
cash, there will be a loan fee & possible appraisal fees (please see
the "Financing & Qualification" section of FAQ for details on loan
fees). If there is any kind of inspections requested by the buyer at
any time, the buyer needs to pay for its costs out of pocket to get
the inspection results right away.]
How is a Bank REPO manufactured / mobile home priced compare to the regular listed homes?
[The home is usually priced with the previous owner's outstanding loan balance, plus the cost of necessary repair works, paperwork & marketing. There is also marketability factors involved in the pricing decision. The price is subjected to change at anytime without notice. Buyers are recommended to do their own due-diligence prior to making any commitment to purchase. "For Sale" homes in the same park or area are the best comparables for you to use to determine the value of our REPO properties.]
Questions regarding: "Financing & Qualification"
Do you offer financing? Can I
arrange my own financing?
[Yes. We have a fully loaded
financing department that works with varies different lenders. You
are welcomed to arrange your own financing anywhere else. We can
coordinate with any other loan brokers/direct lenders for your
purchase.]
What are your loan fees? Do I have to pay for them out of pocket
or can I finance them as well?
[We charge a flat loan fee
regardless of the loan amount. Most of our regular lenders have no
additional loan fees. However, if we cannot get you approved with
the regular lenders due to your credit or income situation, and you
are still willing to try, there are specialty lenders who have lower
qualifications but charges additional loan fees. We can submit your
application to them with your understanding that even if you get
approved, the interest rate might not be desirable. Most part of the
fees can be financed in most cases, however, there are exceptions.]
What is the absolute minimum down payment required by the
lenders?
[Most regular lenders will take applications
with as low as 5% down payment. Buyers need to understand that the
lower the down payment, the harder to get approved. And of course,
with a higher loan to value ratio, your interest rate and payment is
going to be higher and may not be desirable to you.]
What is the current interest rate for mobile homes & what can
affect my interest rate?
[Currently, it is at 8.75% to
14.00% & up range. People with normal condition would qualify for 9%
- 12%. The lender decide your interest rate base on the amount of
down payment, the length of the loan period, your time in current
job & total time in same line of work, your credit score & history,
your total outstanding debt amount, and many other factors. Among
all these, the only 2 factors the borrower has control over at the
time of buying are down payment and length of the loan. The higher
the down is, the lower the rate is; the shorter the loan period is,
the lower the rate is.]
What is the absolute minimum credit score you start working with?
[We
can work with as low as 580 FICO score. Please be advised that if
your score is lower than 640, the chance for getting approved is
very low, the interest rate can be very high, and the loan fee can
be higher than usual. However, we do work with credit repair agencies where we can
introduce the buyers to. If your credit is not excellent, do not
panic, because we find that a good number of entries in a person's
credit report can be mistaken.]
How do I know if I & my family can qualify for a loan?
[If
you have no bankruptcies or other severe negative entries on your
credit report, you are in the normal guideline. In a normal
guideline, a debt to income ratio should not exceed 40% to 45%; and
2-year or more on the same job or at least on the same line or work
is almost a must. Debt to income ratio is defined as follows: Debt
is the total minimum monthly payment of your current outstanding
debt, including car payment, credit cards & so on, plus the
prospective mortgage payment & space rent on the home you are
buying; income is the monthly gross income determined(averaged) by
your year-to-date income & last year's W-2. Caution: If you have
self-employed income, only the net income counts. Giving or
receiving child support will decrease/increase your income
considered. So your debt (monthly payments) cannot be more than 40%
to 45% of your monthly income. If you do not fall into the normal
guideline, then we have to work with you on a case by case basis.
Please understand that even if it seems like you are within the
normal guideline, we cannot guarantee your approval because lenders
have more sophisticated guidelines that we cannot explain in few
words. The above guidelines are provided for your best reference
only and do not guarantee any approval under any circumstance.]
What do I need to know about co-buyer / co-signer?
[Many families have the situation that one person has the credit and the other has the income. All we can say is that it's possible to get you approved, again, with no guarantee. We have to work with you on a case-by-case basis.]
How come the interest rates are so high comparing to real estate loans?
[Manufactured homes are considered "personal properties" rather than a "real estate". There are lots of similarities between manufactured homes & conventional homes, however, the lenders looks at real estate as more stable collateral for the money they lend out. So not only the interest rate, but also loan qualification & loan to value ratio requirements are totally different.]
Questions regarding: "Mobile Home Parks"
What is a "Family Park" or "All Age Park" and what is a "Senior Park"?
[A family park (all-age Park) is a mobile home community that allows residents of all ages. A typical senior park requires at least one person on the deed/title (owns and lives in the home) is at least 55-year-old of age. Other family members who intent to live in the home can be as young as 18-year-old. There are many senior parks however, requires other family members to be at least 45-year-old. Park rules & regulations can be subjected to change at any time without notice.]
How do I know if I & my family can qualify for the residency of a certain park?
[Qualifications for all parks are very similar. All parks require proof of income, credit and background check, and letters from previous landlord. Some park has minor additional requirements and we will assist you with them when the time comes.]
