Are you looking to purchase a mobile home and are not sure where to turn for a loan? In this video, we are joined by Real Estate Agent, Jayson Mellott, who also owns Mobile Home Settlements! Together, we will discuss the settlement and financing options you have if you are purchasing a mobile home!
Residential Real Estate vs. Mobile Homes
There are key differences between mortgages on residential real estate and mobile homes or manufactures homes. The major difference is that you’re buying a home that is not on its own property and is instead on leased land. This would be a mobile home that is in a park; you own the home but not the land it is sitting on. It is the reason why most residential lenders don’t do these types of loans. Additionally, it explains why a traditional settlement company doesn’t work because there’s nothing to write title insurance on.
Mobile home loans are also not the same a car loan or a car title transfer. You do not pay yearly taxes on a car but you do in a mobile home just like you would a house. The transfer of taxes when buying or selling a mobile home is something that often presents a lot of problems as well. Because there are not settlement options for mobile homes many people find that they are doing this on their own. If the taxes haven’t been transferred correctly, this is something can haunt the seller or the buyer years down the road.
Financial Process for Mobile Homes
The financial process for a mobile home is very different and there are few lenders that will do these kinds of loans, my team included. They are considered higher risk loans and typically involve a dry settlement situation. This is where you sign everything ahead of time at your closing and it gets sent back. After that, the funds are sent which usually can take two days to a week. A dry settlement in this process is something to be aware of so as you sit at your closing you are not freaking out when you are not getting checks.
Our team receives inquiries about mobile homes all of the time and we always refer people to Jayson. He is connected with the better lenders in the area who do these loans.
“I handpicked some of the better mortgage operators out there. So you have a pleasant experience all the way through.” Says Jayson
Stress Free Mobile Home Purchase
Jayson handles all of the important things to make the purchase or sale of your mobile home simple and stress free. He begins by prorating the taxes to make sure that everybody is paying their fair share. Then, he checks with the parks to make sure there’s no outstanding bills that the buyer is going to inherit when they take over the property. Finally, he transfers the title himself.
Mobile Home Settlements does all of this for one, flat, reasonable fee and it will often save you money in the long run. As they are a newer service, it is common that previous buyers have not transferred the taxes correctly because it does fall primarily on them to do. This can result in $2500 or more in back taxes that the new buyer will then have to pay.
“Even today when I was visiting a tax claim office certifying taxes, we found out that the home has $2500 worth of back taxes that would have been due to the buyer once they purchased the property.” Jayson Revealed.
Mirroring the Residential Real Estate Process
The best part is you can do this with or without a real estate agent. Often many real estate agents don’t know where to turn to help their clients who want to purchase a mobile home because it’s not the traditional sale of real estate. Even though it’s not traditional real estate, those who choose to purchase a mobile home are still purchasing a home. For Jayson, it didn’t sit right with him that people had to go through a different process and do most of the work themselves.
“It didn’t feel right to me that clients who are purchasing mobile homes had a different process than a normal homebuyer. To me, I felt like it should all be the same. It shouldn’t feel like they’re going and buying a used car from a car lot somewhere.”
The process Jayson created mirrors that of a home settlement purchase to give people that same experience. So, when clients come to the settlement table, they sit down, sign the forms, get the checks, the buyer gets the keys, and everyone goes about your merry way. It looks exactly like a regular home purchase.
Serivce You Can Count On
Jayson Mellott is the only real estate expert who has created this experience for those purchasing mobile homes and since my team can only provide financing for mobile homes on purchased land, we always refer these calls to Mobile Home Settlements. Jayson is wonderful to work with and even travels to where the client is for settlement.
If you have any questions about settlement and financing options for mobile homes please reach out to the Rebecca Foote Mortgage Team at (717) 609-4044 and we can get you in touch with Jayson and Mobile Home Settlements!