Frequently Asked Questions
Our most frequently asked question:
Our clients often ask us how best to expedite their loan approval. By far the most effective way to do this is to provide us with each and every requested document as quickly as you can, particularly those required in the pre-funding packet. When we send you this packet it will include a list of the documents required for your specific loan, but if you would like to get a head-start on gathering what we will need from you, let us know--our staff can send you a comprehensive list as soon as you submit your application. The graphic below illustrates the process from start to finish.
Other Frequently Asked Questions
Appraisal - The appraisal for a manufactured home today is very similar to any conventional home appraisal. The appraiser will use comparable sales within the last 6 months (not listings) within the community. These comparable sales will be adjusted against the buyers subject property to determine fair market value. This value is then used by the lender to determine the loan amount. Any buyer should always demand to know the exact appraised value on the property being purchased.
"Buy For" Program - Purchasing a manufactured or mobile home for someone else. The home will not be occupied by the buyer.
Cash Out Refinance - Obtaining a new loan to pay off a current note holder (if applicable) plus cash out for debt consolidation, improvements, vacations, etc.
"Chattel Loan" Consumer Loan - A manufactured or mobile home loan in a rental/lease park. This loan finances the home only. Rates and terms are normally different than a real estate loan.
Credit Report - There are 3 major credit reporting agencies: Experian, Equifax, and Transunion. Using a credit report the lender will review current debt current past payment history, deliquent credit, etc.
Credit Score - Each credit reporting agency has a credit scoring system ( i.e. "fico" score). The system is fairly complex but it primarily looks at your payment history and credit balances within the last 24 months. The score can range from 450 - 850. The higher the score the better. Normally, the higher the score the better the rate and term the buyer will receive.
Escrow - An escrow company is a neutral 3rd party between buyer and seller. California state law requires an escrow company be used on any non-cash transaction. The escrow company will complete titling, tax clearance, fund distribution, etc.
Home and Land Combination - Combining the financing of a piece of land and the manufactured home into one mortgage. This is a real property loan.
Home Only on Private Land - A loan financing only the manufactured home on a piece of private land. This is a chattel consumer loan.
HUD Home - Manufactured homes built after June 1976 are considered HUD homes - Homes built prior are considered pre-HUD homes.
In Park Financing - The financing of a manufactured or mobile home located in a rental/lease park.
Rate and Term Refinancing - Obtaining a new loan to pay off a current note holder. No cash back to the borrower.