Manufactured Home Move-Ons

MANUFACTURED HOME MOVE-ON LOANS: There are ways to finance a new or used manufactured home that you want to move on to land your are buying or land that you already own.

You can own the land all ready, or you can purchase the land at the same time you purchase the manufactured home and combine the transaction. Either way, you may want to put a manufactured home on your lot.

These are manufactured home construction loans.
1) There are Institutional or Private Money Investors who loan 60-65% of the Future Value of the Home in order to move a manufactured home on to your lot.

The Future Value means the value given after all the work is done and the new home is in place. It is accomplished by comparing your manufactured home move on with the value of the properties owned by nearby property owners with similar square footage manufactured home construction.

In addition to the loan you get to move a manufactured home on to your lot, you have to put some money down too. How much you need to have in cash depends on the equity you have in your existing lot.

Manufactured home move-on loans are similar to construction loans for "stick build" properties, but the time to set up the new Manufactured Home is far far less so you home is ready much sooner and therefore, the construction loan interest rate costs are less.

Manufactured home construction loans - Here is an example:
The lot costs $40,000
The home costs $54,000
The other Fees and Utilities cost $31,500
Permanent Foundation and Flat Work cost $10,000
So now your total Costs are $135,500

At this time, you can borrow 90% of the total costs to build, and finance 90% of the loan costs, so your loan amount would be $145,000.

Included in the loan amount is a 4% contingency reserve that will be returned to you if you don't need it.

You would need to bring approximately $18,000 cash into escrow to close both
the purchase of the land and the construction move on financing. Included in the $18,000 are appraisal, title and escrow fees that you pay cash for, and proration's or tax payments that may be required.

In this example, the move on fee, to get the home to the land, was arranged by the new manufactured home seller. If you are moving a pre-owned home on to the land, you will ask the contractor to arrange for the sub-contractor that moves the home to the land.

If you give me your particular numbers, like cost of land and costs to build, as they are different for every City/County, I will do the calculations for you.

In addition to this article regarding how to move a manufactured home on to
your lot, please read other financial articles on this web site regarding manufactured home financing. Manufactured home construction loans vary a great deal. And to move a manufactured home on to your lot is a specialty loan for sure. It is best to call me so we can discuss manufactured home move on
loans using your particular fact situation.

New Home

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