Randall 's Blog

FHA has no problem insuring single wide manufactured homes.  The problem is that the FHA lenders, as of the writing of this blog, will not touch them.  Even with the FHA insurance, the lenders won't touch them.  Very few non-FHA lenders will touch them either.  My list of single wide lenders is down to about 4 now!

My best guess is that historically, people that purchase single wides are less well off and more suseptible to financial peril the the rest of the home buyers.  Secondly, the single wide manufactured homes probably depreciate more than block homes and double wides.  This makes it easier for the borrower to get "up-side-down" and more apt to walk away from a bad investment.  Finally, if a lender is taking back, through foreclosure, a vastly higher percentage of single wides, it is simple math.

If a buyer can put a good chunk down, to protect the lender from depreciation and to give the borrower "something to lose," there are some ways out.  Right now, in Florida, we need at least 20% down.  And I cannot help people in other states, sorry.

Double wides?  All day long!  They are easy to go FHA with a 3.5% down payment and some closing costs.     

I just heard a touching story of a recently widowed lady who was left with next to nothing.  A home paid in full and a pile of bills and funeral expenses.  Since she intended to live in the home from here on, the answer was simple.  She applied for a home equity - reverse mortgage.

She caught everything up and had access to more of the equity in her home if she ever needed it.  Talk about piece of mind!

The great thing is that, unlike the typical mortgage, the qualification process is a walk in the park.  The credit score and income are irrelevant because the senior doesn't repay the loan.  The loan is repaid after the senior leaves the home.  No payments are ever made until then!

If you need a reverse mortgage in Florida or Georgia, call Randall at 863-604-0169

The husband passes away suddenly.  The funeral expenses are mounting.  There is not enough money to keep up with the mortgage.

Why not apply for a reverse mortgage?  A senior can receive a lump sum to pay off the existing mortgage, pay the back bills and NO monthly mortgage payment is ever paid!

The loan gets paid off after the senior leaves the home and the rest of the equity goes to the senior or the heirs.  What could be better in a situation like this?

Randall - 863-604-0169

I've done tons of home loans for First Time Home Buyers and have done most of them with very little money out-of-pocket from the buyers.  It's important to understand that even with 100% financing, which is difficult to structure these days, there are still closing costs, pre-paids and reserves to contend with.

Closing Costs - Beyond the cost of the home, buyers are responsible for paying an underwriter, mortgage broker, property appraiser, surveyor, title company, state and county taxes, recording fees, inspectors and credit reporting companies to name a few.  Sure, the buyer can pay some or all of these to sweeten the deal, but these are costs to consider.

Pre-paids - These are things that need to be paid before we can close.  These are items like a full year's homeowners policy, the loading of escrow accounts and whatever pre-paid interest is required.

Reserves - Probably THE most important of the three.  Basically, reserves are what money is available in case of a mishap or emergency.  Financially responsible borrowers have a few house payments set aside in case of a serious auto accident or a job lay-off or other unexpected occurrence.  The last thing a lender wants to here is that there won't be a nickel left after the moving van is paid for. 

A good mortgage broker like me can show you how to best present your loan if a cash deficientcy is an issue, but money in the bank is a great idea, even if you don't need it!

For mortgages in Florida and Georgia, call Randall at 863-604.0169 

I've done tons of home loans for First Time Home Buyers and have done most of them with very little money out-of-pocket from the buyers.  It's important to understand that even with 100% financing, which is difficult to structure these days, there are still closing costs, pre-paids and reserves to contend with.

Closing Costs - Beyond the cost of the home, buyers are responsible for paying an underwriter, mortgage broker, property appraiser, surveyor, title company, state and county taxes, recording fees, inspectors and credit reporting companies to name a few.  Sure, the buyer can pay some or all of these to sweeten the deal, but these are costs to consider.

Pre-paids - These are things that need to be paid before we can close.  These are items like a full year's homeowners policy, the loading of escrow accounts and whatever pre-paid interest is required.

Reserves - Probably THE most important of the three.  Basically, reserves are what money is available in case of a mishap or emergency.  Financially responsible borrowers have a few house payments set aside in case of a serious auto accident or a job lay-off or other unexpected occurrence.  The last thing a lender wants to here is that there won't be a nickel left after the moving van is paid for. 

A good mortgage broker like me can show you how to best present your loan if a cash deficientcy is an issue, but money in the bank is a great idea, even if you don't need it!

For mortgages in Florida and Georgia, call Randall at 863-604-0169

As predicted, a new wave of highly qualified borrowers are calling to refinance their mortgages at the new low interest rates.  Life is good for a well seasoned mortgage broker these days.  Will the rates hold for a while longer?  I sure wouldn't bet on it. 

My recommendation would be to look into getting any financing necessary in the works ASAP and try to lock a rate at a near term low and CLOSE!  If you try to pick the bottom, it could really cost you.

If you need a great mortgage broker in Florida or Georgia, call Randall at 863-229-1235

HUD, in June of 1976, began regulating how manufactured homes would be built.  Previously, it was every manufacturer for themselves and some homes were great and some, not so much.

All post 6/1976 homes have minimum wind speed restrictions and several other requirements.  Through the years, and especially after hurricane Andrew, FHA has found ways to make these homes extremely safe. 

If you need a loan on this type of property in Florida, call a seasoned pro!          Call Randall at 863-229-1235

In a word, NO!  After all I've seen in our markets over the last six months, I'm not betting the farm on anything.  But, 30 year fixed mortgages in the 3's seems a lot to wish for.

Why be greedy?  Rates are advertised widely in the mid to upper 4's lately, and that can change in a flash.  I receive rate updates throughout the day and I know how fast rates can move in the right conditions.

If you need to borrow for a purchase or refinance, DO IT NOW.  If rates get better, it won't be much better.  If rates get worse, there is no telling how much worse. 

If you need a mortgage in Florida or Georgia, call Randall at 863-229-1235

I just off the phone with a very established and worthy borrower.  She said she wants to reduce her low interest rate from 2003 to a lower rate for 2009.  Plus, we are going to pay off a 7.5% HELOC she used to build an addition last year.  Her monthly savings will exceed $500!

I have to believe she is the tip of the iceberg with mortgage note rates under 5.0% in many cases.  Man your phones mortgage brokers, news travels fast!

For mortgage solutions in Florida and Georgia,

call Randall at 863-229-1235

Most first time home buyers don't realize how important their credit history, or a lack thereof, is.  To do a mortgage, we look at how a borrower has paid his past obligations, to project the future.  The weight is on the most recent history and history older than 24 months is almost useless.

I can't tell you how many first time buyers have NO credit history.  It's not impossible, but this is going to be a difficult loan.  If someone would have instructed these borrowers on how easy a "Secured Visa" could work miracles for them.

Go to most any bank and tell them you need a "Secured Visa".  You give the bank $200 to hold as security and they give you a REAL visa card with a $200 limit.  If you don't pay the bill, the bank keeps the money.  If you do pay the bill, they report tons of good news to the credit bureau. 

It's an easy way to a great credit history!

Randall "Super Broker" Schrader - 863-229-1235