 Posted 1/30/2007 12:48:31 AM
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| I am selling an older mobile home, which is very hard to find financing for (especially for more than 70% of sale price). How can I reduce the risk in providing financing myself?
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Posted 1/30/2007 10:40:28 AM
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Nora,
You can reduce the risk of seller financing by:
1) Credit Check
2) Substantial downpayment: 20 - 25%
3) Interest rate above the current "market' rate
4) Monthly payment schedule over a shorter period of time: 10 years rather than 20 years
5) Timely Payments: insist on payments on time and if late, write letter
6) Balloon Payments: this will help reduce the loan faster
7) Special clauses. The note should require payment of the attorney fees and there should be a penalty for late payments.
Our Articles Library has some great articles on this topic so to learn more about Seller Financing, go to:
http://www.owners.com/Tools/Library/MainListing/Seller+Financing.aspx
Good luck!
FSBO Guru
Owners.com
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Posted 2/2/2007 6:50:00 AM
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Nora, It's great that you're willing to carry a note to get your mobile home sold. Did you know that you don't have to keep the note yourself? You can sell it and get a lump sum of cash now. If you'd like more information on how to get cash now, give me a call 760-684-4296
Tommie
Tommie
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Posted 2/2/2007 9:40:26 AM
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Hi Nora - Yes, getting financing on a pre-HUD (1976 and earlier) mobile home can be tough. Be sure and contact lots of lenders as you may be able to get financing as high as 75/25. As far as doing owner-financing, why not do it on the down payment amount only? And then as the previous post mentioned you can sell your note if you want. If you find a really good lender to help with the financing they may be able to give you several names of those willing to buy your note.
And the very best way to sell an older moble home - cash! That's how the majority of them sell in my area. They're usually less expensive and this is an area where people want second homes. If you happen to live in such an area, then look for an out-of-town buyer wanting a vacation home.
Gretchen Blankenship, Realtor, GRI
ERA National Realty of Arizona
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