Financing of Manufactured Homes can be financed as Home Only (Chattel) with the title to the home as security or Land and Home together (Deed to Property as Security).
Financing Modular Homes requires a deed to the property to complete the financing arrangements. The reason, there is no title to a Modular Home therefore the homes become part of the property and security is held in the deed to the property.
Mitchell's is signed up with every available lender for these types of homes to secure the best possible financing options for you the buyer.
Interest rates change almost daily and are not guaranteed until the Chattel approval is published or the Land/Home Disclosures are signed by the buyer.
Credit controls your ability to purchase. It controls your ability to purchase a manfactured or modular home. To purchase on credit you must have a decent credit history. Most lenders require a minimum credit score of 620.
At this moment, Mitchell's has an available lender that will finance a buyer with a credit score of 575-620. Call Mitchell's to find out more about this program. We also have a program for buyers with no credit history or those who do not score.
A perfect score is an 800 or above. The highest possible score is 840.
If you have any intention to run credit for major purchase, a lender will consider your credit score, job history, time between employments, amount of debt and your income. Debt ratio plays the most important role. Meaning you must have a sufficient income to cover the amount of debt you possess. Lender will request a copy of your most recent bank statements, last two W2's, and most recent check stubs showing a year to date amount.
If you are self-employeed and recieve a 1099 then you must turn in your last two years completed and signed tax returns. For the self-employed, Mitchell's is signed up with one lender that offers a stated income program.
Only the income of the appliant can be used. To use the income of spouse or co-applicant, both names must be on the application to be considered.
Here are a few items that greatly effect your credit rating:
The amount of times your credit is pulled is a great factor in your credit score. Don't not let everyone pull your credit. It is best to get your own credit report, which is availabe to you online free at least once per year, to know if you qualify to make a major purchase. Pre-qualification is also available.
You must have a least 12 months of postive payments with no lates.
Do not let your credit cards go above their credit limits.
With the economy in its current shape the ability to obtain financing is the most difficult even for the greatest of credit. Financing is completely in the hands of the lender. When an application is submitted a decision is given a pre-approval, denial, or counter offer. A pre-approval comes with a list of conditions that the credit manager or sometimes called underwriter deems necessary to approve your loan. This list of conditions comes with every single loan transaction in the factory built industry and also in the real estate mortgage loan industry. It can take from 3 days to 3 weeks to get a final approval depending on how accurate the conditions are and how long it takes to obtain the list of conditions. Please note, the dealer has no control over financing and a home cannot be delivered until all conditions to a loan are received and accepted by the loan originator. The dealer’s only control with home delivery comes if you pay cash.
Once all conditions are satisfied by the Lender’s credit manager or underwriter, then we receive contracts, sign and deliver your new home. To help speed up the process here is a list of conditions that are required on every loan to get a final approval. Any item that is incomplete only slows down the final approval. Each applicant may receive other conditions and will be notified as to such.
_____ Copy of DL and SSC
_____ Verify applicant’s income with a Year to Date Check Stub. (Check Stub must have YTD amt)
____ Verify Co-applicant’s income with a YTD Check Stub.
____ Verify the past 6 months income history with ytd check stub, w-2, voe and/or 1040.
____ Last two years tax returns with W-2’s.
____ Verify down payment by certified funds (Cashier’s Check).
____ Verify source of down payment. Money saved must be verified with at least two months bank statements, IRS refunds with a copy of the refund statement, sell of a current home with a Hud 1 settlement statements, etc.
_____ Trade-Ins must have a title in buyer’s name. If balance owed on Trade-In please verify with loan amount and payoff information. Gifted title must be accompanied with gift letter.
_____ 911 Address. (Must be rec. from County 911 Office and verified with Flood Certification.
_____ Verify land ownership with copy of deed.
_____ Landowner’s name, address and phone # with signature and zero rent statement if not owned by buyer.
If you have any questions about your credit report or financing a new home, please don't hesitate to give us a call at Mitchell's. We understand this part of the industry and can help guide you in the right direction. Contact us anytime at (501) 305-2360.