Finance 20 Acres With Mobile Home

by Peg
(Nebraska)

Ask Kate: Finance 20 Acres With Mobile Home
Contact Kate about problems financing 20 acres with mobile home...I am looking to finance 20 acres with a mobile home on it. No one wants to loan on a mobile home that is not on a mobile home lot. No one wants to loan the money on acreage with "just" a mobile home on it.



The mobile home has been permanently set down with the wheels taken off, built onto and is a 1997 model.

Why is it so difficult? Any suggestions?

I live in Nebraska and the land is at a good price.

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Finance 20 Acres With Mobile Home

Dear Peg,

Why financing a mobile home on 20 acres can be difficult...

Mortgage lenders anticipate mobile homes on acreage becoming difficult to sell. So, financing mobile homes on acreage, even during a hot real estate market, has been a specialty of local banks who understand their particular real estate market or lenders charging higher interest rates.

Keep in mind, in the future as the owner of this real estate, your prospective buyer might run into similar mortgage road blocks you are experiencing today.

Suggestions...

1- Many mortgage companies shy away from financing more than 5 acres. This property with 20 acres could be narrowing your financing choices. Look for lending companies who specialize in excess acreage.

2- You mentioned that the mobile home has been built onto. Does Nebraska require a final permit through a specific government agency for alterations? Alterations can include remodeling, a permanent foundation or a simple attached patio. Have you done your homework?

3- Although customs vary throughout the US, I witnessed many mobile home on excess acreage financed by sellers.

Food for thought since one day as the homeowner, you might need to sell the mobile home and acreage.

Best wishes and good luck,
Kate

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