No Cost Mobile Home Loan Program

No Cost Manufactured Home Loans

No Cost Mobile Home Loans:

They are my favorite loans, simply because they are "no brainers." Even though no cost loans have a slightly higher interest...if we even lower your interest rate by as little as .5%, the savings in the payment each month & savings over the life of the loan can mean tens of thousands of dollars back in your pocket(or the way we look at it: put your own kid through college instead of a banker kid). In most cases, our no point / no fee manufactured home loans yield more than a full 1% reduction in rate.

To make the no closing cost mobile home loan work for you and your family, you must take into account the remaining years left on your current manufactured home mortgage. To realize maximum savings on a no point mobile home refinance, we must and will give you a shorter term with a lower rate....and thus the term "No Brainer." The beauty of the manufactured lending industry is the shorter the term you choose the lower the interest rate we are able to offer you.

If you have no closing costs and you lower your mobile home loan rate with a "no cost" refi, how could you lose? The "no cost" refinance is the only sure winner as it costs the borrower nothing, no matter how soon the loan is paid off. And next time rates go any lower, you do it again! Because of the smaller loan balances manufactured home loans on average  take over 2 years to recover closing costs and points.

We can provide a spreadsheet to our clients comparing the existing loan to a 1.5 point loan, a no point loan and a "no cost" loan. The calculation is rather simple.

Example:

1. Deduct the new interest only payment from the existing interest only payment to calculate your monthly savings. ($50)
2. Add all closing costs and points ($2,500)
3. Divide the total cost by the savings ($2,500/$50)
4. The result is the number of months to recover the closing costs. (50)

Now you know it will take 4 years until the refinance starts to pay off.

That's a long time, a lot can happen in 4 years:

• Rates could go even lower.
• Maybe you sell the property.
• Maybe you need cash and decide to refinance.
• Maybe your property burns, floods, blows or quakes away.

Unless you keep our sample loan for at least 4 year, you just gave away your money and you're not going to get a penny back. You could add these same $2,500 to your favorite investments. Of course, if you are SURE that you are going to keep the loan substantially longer and rates are at the all time low, get the lowest rate you can afford. Calculate your closing costs and recovery period at the time you lock. Us our mortgage tools page to do some calculations for yourself.

 Mobile Home Loans Q & A  

• What is the Fico range for good, fair & bad credit rating with manufactured lending?
  Good credit is usually defined as the borrowers with few if any past or present collections, good income & credit over 680 fico. Fair credit borrowers would have more deragatories, lower income & credit from 600 fico to 679. Generally bad credit is those clients with a previous bankruptcy or significant ongoing collections and/or leins, significant debt, lawsuits amd/or past or present ongoing foreclosure and a credit score of 599 and below. (in some cases credit score is not the only determining factor for a fair credit loan. We will always try to qualify you fair credit first)
• What is debt to income ratio?
  Debt to income ratio is the calculation used by us to determine how large of a loan balance your income can support. Typically this calculation is figured by adding all your bill's minimum payments due each month, your space rent & new mortgage payment divide by your gross income.
• What is the lowest down payment I can put down: for good credit 5% down on land home & in park. In some case we allow for 100% financing when getting the home at a significant valuation.
• What loan term will be best for me?
  This depends on your goals. If your goal is to pay off the home quicker then a shorter term is suggested. If your goal is lowest payment then a longer term is best.
• What will my closing costs be?
  Good credit borrowers never pay points & the closing cost for these borrowers is usually $1300 to $1800. Bad credit borrowers will usually have to pay points. Typically, our closing cost ranges from $2700 to $4800 depending on the loan size. (In some cases bad credit borrowers may require more closing cost depending on overwhelming negative factors)We do have no closing cost programs.
• Can I consolidate bills? Yes. In some cases we actually may have to pay bills to get your debt versus income inline.
• Can the seller assist with down payment?
  Not on good credit loans. In CA, OR & WA we have a program where the seller can assist with securing part of the risk in a bad credit mobile home purchase loan... they may also assist with closing cost, repairs, fire insurance and home warranty. We do allow gift for down payment. 
• What items must be prepaid?
  There are no pre-pay items. Typically we allow you to finance into your new bad credit purchase loan up to 2 year of fire insurace, 2 years of a home warranty program, closing cost and up to 6 months of space rent.
• How long is quoted interest rates good for?
  Called a rate lock, under normal instances we lock the rate for 60 days which is free to the client. 
• How long will the approval take?
  With a complete file and motivated client approvals take 30 minutes with loan closings in as quick as 3 days for bad credit & 7 days for good credit.
• Will the loan have a prepayment penalty?
  Absolutely not. Even with a bad credit standing we won't be assigning a pre-pay penalty. 

• Experience.
  Founded in 1999, LoanJunction.com has processed and funded 10's of thousands of mobile home loans.
• Customer Service.
  We are only as good as our last clients says we are. That's why with every customer we'll move mountains for the privilege to be your lender. With caring staff, 24 hour customer service & online account management we intend to move mountains for you for years to come.
• Financial Resources.
  LoanJunction.com is a national lender drawing upon over 4 billion in investment capital for our clients needs. 
• Track Record.
  You don't get to be a proud AAA rated Better Business Bureau company by doing things the wrong way. We intend to keep it that way.
• Community Support.
  We have a larger responsibility to support our clients long after the transaction is done. Please visit our Park Crime Prevention Page to join us in keeping our park communities safe and crime free; Also As rent control advocates, no one is more out spoken about keeping our parks free of exuberant & predatory rent increases.
• Technology.
  With an eye on the 22nd century, our client management services are second to none. Our award winning online operations coupled with 24 live customer service, automated bill pay and rate decrease notifications we stand at the forefront of mobile home lendings' long awaited technological revolution.
• Hands On.
  There are no substitutions for rolling up the sleeves to get the job done right. That's why each client is assigned a proven & considerate account executive to oversee the loan transaction from start to finish. This is your guy or gal in the trenches with their "hands on" approach.
• Accountability.
  Each staff member is 100% accountable to you and your needs. Whether the loan has unforeseen difficulties, or tough measures need to be taken, our staff from the president on down will always field your calls and/or concerns.

Last Updated:  Thursday, January 03, 2008 

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