- May 1, 2011 at 2:02 am #23012
I need a loan to buy a mobile home and I want to use the land I already own as collateral. Are there any mortgage companies or banks that are known to take land as collateral as a down payment or to secure the loan? (p.s. I live in Oklahoma)May 1, 2011 at 2:47 am #114812
There are a few that will allow you to buy a mobile home and attach it to your land and they would then have the lien against the whole thing.
But as a rule they do not loan money against raw undeveloped land at all.May 1, 2011 at 3:19 am #114813
You may borrower money and use your land as collateral. These are called land loans. There are several companies you might use. Google land loans followed by the city and state in which you reside. Land lenders would normally lend you a maximum of 50% loan to value of the property.
Once you have secured the land loan this becomes a debt on your credit report and might raise some eyebrows when you apply for your mortgage loan as this would be a recent transaction on your credit report. This debt would also affect your ratios, the formula used by mortgage lenders to determine the amount of house you would be qualified to purchase.
Also most mortgage lenders would want to have what is normally called seasoning of the money you would want to use as the down payment. This seasoning is normally 90 days or more in your possession or bank account.
If you are going to purchase a mobile home, you might not need a land loan. You should contact the mobile home dealer you would consider purchasing your mobile home from. Inform them that you currently own the land you would want to place the mobile home.
There might be a program where you would not be required to make a down payment. The mobile home seller might take in consideration that you currently own the land.
I hope this has been of some benefit to you, good luck.
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