Will manufactured home trade-in value and land-in-lieu value be credited on a loan for a new mf’d home?

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I currently have a mortgage for a manufactured home which sits on my own land. My husband and I want to buy a larger manufactured home using land-in-lieu of cash down payment. If the trade-in value on the old home is $ 20,000 and the the land appraisal is $ 20,000, will $ 40,000 be credited against the new loan amount?

My wife and I are currently looking at a manufactured home with 1.8 acres of land in South Carolina, it is a doublewide home, on a permanent foundation, currently it is “unhabitable”, in that the sinks have been removed and may need some electrical work. Trying to find a mortgage is killing us. Our credit scores are in the low 700’s. We have been pre approved for twice as much as this purchase would be. Are there other options like getting it as an investment property or doing a land loan on it? I need to know if this is even possible, or if there is a way to beat the loan system that is making it super hard to get a loan on a manufactured home.

9 Comments
  1. Reply
    Chickie!
    January 31, 2011 at 8:49 am

    No. You will get the credit for the 20,000 trade in. The value of your property will just be put up as collateral for getting the loan. It will not reduce the price. The lender is taking a greater risk since you do not have a suitable down payment. This way if you default, they can repo the trailer and the land.

  2. Reply
    michaelb31061
    January 31, 2011 at 9:19 am

    You will only get credit for the trade-in value less the payoff on the trade. Hopefully you have enough equity left to cover your down payment. FHA loans require a down payment of 3.5 percent. Also, make sure the allowance they are giving you for your trade is not being added to the price of the new home. I can sell a new 32 x 80 Horton Home in Milledgeville, GA for $ 79,900 + sales tax, delivered, setup, and a Trane a/c.

  3. Reply
    sudha k
    January 31, 2011 at 10:04 am

    Hi Friend getting loan is very easy…Just take look at the link below to get free loan quotes

  4. Reply
    lepr0kan
    January 31, 2011 at 10:52 am

    It is possible although in this market may be quite difficult, especially on a manufactured home. Look into getting an investment loan for the property. The house will still need to appraise at what your buying it for though. Then once you’ve done the renovations and it is livable look into refinancing, then you’ll be able to get a lower rate and it will be easier to find a home loan. Good luck.

  5. Reply
    Sabrina Lynn
    January 31, 2011 at 11:25 am

    keep in mind, manufactured homes values go down, not up, ever. i think you could be better off buying a small cottage and fixing it up, and making more money than you would if you sold that manufactured home and lot 5 years from when you bought it, in almost new condition.

  6. Reply
    petey00petey
    January 31, 2011 at 11:43 am

    WHY NOT TREAT IT AS A LAND ONLY ACQUISITION….THE HOME ,WETHER IN GOOD CONDITION OR NOT,IS IRRELAVANT….

  7. Reply
    Mortgageman
    January 31, 2011 at 11:45 am

    You won’t find a bank willing to invest in that property. I would start with the local credit union and see about a lot loan. You may have to come out-of-pocket with sizable down payment.

  8. Reply
    Lateisha Sallah
    June 23, 2015 at 3:15 am

    I have 2011 singlewide trailer i have lived here for 3 years but now i need a 4 bedroom home should i try to sell or can i trade it in for a land home package?

  9. Reply
    Cheyena
    December 11, 2015 at 12:44 pm

    I have $50,000 cash for a new manuf home and interested in moving to a manuf home park. I own outright my land 1/2 acre and 2005 Manuf home, but wish to use it as a trade. I live in Oregon. Is this possible to do? Which manuf home companies trade ?

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