Hard Money For Manufactured Housing In California
By G. David Lapin On June 28 2023
Hard Money Loans For Manufactured Housing In California Is Possible. Even Pre 76'.
Hard money loans for manufactured housing in California is possible, but it's important to understand the implications and considerations involved. Hard money loans are typically shorter, asset-based loans that are secured by real estate. Here are some key points to keep in mind when considering hard money loans for manufactured housing in California:
Loan Requirements: Hard money financing focuses more on the value of the property rather than the borrower's creditworthiness.. The broker will need to know the year built in factory, ratio of home to land, 433 A recorded,single,double,triple wide and model type.
Higher Interest Rates and Fees: Hard money loans generally come with higher interest rates compared to traditional loans. Since they carry higher risk for the lender, the interest rates can range from 8% to 12% or more. Additionally, there may be additional fees associated with the loan, such as origination fees and closing costs.
Shorter Loan Terms: Hard money loans are typically shorter in duration, usually ranging from six months to a few years. They are designed as short-term financing options, often used for real estate investments, fix-and-flip projects, or bridge loans. Longer term loans are avaibale case by case.
Loan-to-Value Ratio: Hard money financing usually base the loan amount on the property's value, as determined by an appraisal . The loan-to-value (LTV) ratio for manufactured homes may vary depending on the lender's policies, but it is typically lower than what is offered for traditional homes. Lenders may provide funding up to 65% of the home's appraised value. Hanovermc will consider pre 1976 built. (must own the land)
Exit Strategy: They often require a solid exit strategy, which outlines how the borrower plans to repay the loan. This could involve selling the property, refinancing with a traditional loan, or using other funds to repay the hard money loan.
Due Diligence and Inspections: Hard money brokers may conduct thorough due diligence and property inspections before approving the loan. They want to ensure that the manufactured home meets their criteria and has sufficient value to serve as collateral for the loan.
Please note Hanovermc can only consider manufctured housing that has land as part of the transaction.