http://co-plan.net Economic Outlooks |Stock Market |Financial |Earnings |World Market Tue, 22 May 2012 03:32:31 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 http://co-plan.net/changes-in-mobile-home-lending/ http://co-plan.net/changes-in-mobile-home-lending/#comments Tue, 06 Jul 2010 09:09:58 +0000 admin http://co-plan.net/?p=764 Mobile properties may not be a staple of the housing market in New York. But according to an industry trade group, they made up nearly a quarter of all new homes sold for less than $200,000 nationally last year, making them a key component of the affordable-housing sector.
Many of these mobile homes have features similar to those found in site-built conventional houses, like natural wood finishes, eat-in kitchens and even skylights. But the way to finance buying a mobile home is usually far from conventional.
There are two kinds of loans available to the borrowers. For people who do not secure the loan with land, the most common is a personal property loan. These represent at least 60% of the lending activity for this housing category.
For those who own the underlying land, they can take out a conventional mortgage. But the lenders often charge fees that can add as much as three-quarters of a percentage point to the interest rate. The fees are passed down by the lenders from Fannie Mae and Freddie Mac, which buy the loans and typically regard these borrowers as riskier than conventional borrowers, even if their credit profiles are actually otherwise identical.

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