Main House Is Stick, 'guest' House Is Manufactured

[timd354]

I didn't realize log cabins were tough to finance. We've been approved for an ARM, I just can't believe a manufactured taints the well as much as it does.

I work for a mortgage insurer and log homes are not all that difficult to finance. Plenty of lenders accept them and so does Fannie Mae and Freddie Mac. Manufactured homes are a different story....most lenders don't want to touch them because they are not easy loans to sell in the secondary market and the default rate on manufactured home loans is much higher than on other types of properties.

Best of luck to you in financing your purchase.

 

[Amy Perkins]

First post. My wife and I signed a purchase agreement to buy a property in Idaho that has a large log cabin as the main house and a manufactured house on a foundation and designated as real property as a guest house. It sits on 5 acres. Even though the property would assess at our agreed to purchase price with the main house alone, lenders will not offer us a fixed rate mortgage because of the mfg. home. We've been told that we can redeclare as personal property but it needs to be removed from the foundation. Why should it even matter? Am I missing something here?

Call Wintrust Mortgage, they are like a bank but without the hassle and talk to Micheal Carlyon (805) 856-9756 he is the manager.

 

[Terrel L. Shields]

Plenty of lenders accept them and so does Fannie Mae and Freddie Mac.

I never appraised one back when I did secondary market that there were not significant issues to getting it financed. I would think in the area the OP is in, it would be significantly different. But there is and has almost always been some resistance to financing them, geodesic domes, A frames, and bermed or under ground homes.

One issue with logs was a spate of log homes built in the early 1980s that were built from logs taken out of the blowdown area of Mt. St. Helens volcano. These trees suffered shakes and splits and were a real mess structurally. That didn't help their reputation. And they cost more and with any resistance to financing, a home has to sell cheaper to make the cut. The result is that they often sit on the market for longer periods and have to be discounted more to get financed.

 

[Michigan CG]

Many local credit unions keep loans in house. Farm Credit is also an option. Any lender selling on the secondary market is a waste of time for this property. I wouldn't get an ARM as rates are only going up from now on.

 

[Vermonter]

I never appraised one back when I did secondary market that there were not significant issues to getting it financed. I would think in the area the OP is in, it would be significantly different. But there is and has almost always been some resistance to financing them, geodesic domes, A frames, and bermed or under ground homes.

One issue with logs was a spate of log homes built in the early 1980s that were built from logs taken out of the blowdown area of Mt. St. Helens volcano. These trees suffered shakes and splits and were a real mess structurally. That didn't help their reputation. And they cost more and with any resistance to financing, a home has to sell cheaper to make the cut. The result is that they often sit on the market for longer periods and have to be discounted more to get financed.

Remember appraising log homes was a PITA late 90s early 2000s. Can't be as difficult to finance anymore....because the extra stips on them disappeared. Not exactly sure what changed.

MHs on the other hand....