MIND YOUR BIZNESS
the land used as collateral as well as the home, but the liens will be released when the loan is paid in full.
Prefabricated and Manufactured Home Loans
Some lenders will accept land as collateral provided the land has equity value that meets a certain percent of the sales price and the land is free and clear of all existing liens. The amount of equity required is based on the borrower's creditworthiness, the loan program applied for and other factors. For example, if the sales price of a new home is $100,000 and the lender requires 10% equity for the home loan, the land will need an equity value of at least $10,000. The value of the land is usually assessed by a third party, like an appraiser or the local tax assessor. If the land equity does not meet the required percentage, the borrower can talk to the lender to learn about their alternative options. Typically, manufactured or prefabricated homes have a starting price that is lower than the starting price of a new site-built home with land, so they can be a smart option if saving for a down payment takes a lot of effort.
Making homeownership a possibility for everyone
Trying to secure financing can seem like a big step, especially for first-time home buyers. But there are options tailored to fit just about every need. "Our goal is to provide home financing options to customers that best fits their needs," said Eric Hamilton, President of Vanderbilt Mortgage and Finance, Inc. "If obtaining
a cash down payment is a challenge, then we have educational resources and specific programs to help those who want to reach the goal of homeownership." If you do not have any land to use in place of a down payment, that is ok too! Check out these helpful tips on how to save for a down payment.
ALL LOANS SUBJECT TO CREDIT APPROVAL
Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail Maryville, TN, 865-380-3000, NMLS #1561, (https://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loan made or arranger pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic #6911), Illinois Residential Mortgage License, KS Licensed Mortgage Co. (SL.0000720), Licensed by the NH Banking Department, Mississippi Licensed Mortgage Company, MT Lic. #1561, Licensed by PA Dept. of Banking.
"If you do not have any land to use in place
of a down payment,
that is ok too!"