I have never gotten a loan before. I am interested in a piece of property that I am confident I can resell for profit. The property is land only w\septic installed. I own an acre with a 3 bedroom 2 bath mobile, worth about 40,000.00. It is completely paid off, leaving only a yearly tax obligation paid by me. I am sole owner and have bad past credit of apx. 5 years ago (apx 8000.00), of which I have no way of clearing at this time. I am married with my husband as the sole income provider. What kind of loan, if any is available to me.
thanks
Rain

The one piece of information that would make the most difference is “how much is the land that you are interested in being sold for?”. You also did not mention if there were any liquid assets available.

Being that there is a little equity in the mobile home, there is probably someone out there that is willing to lend on that. Of course, this will place that property at risk as well as create a debt service. But will the amount of equity that you can get out enough to make the deal happen? I guess what I am trying to say here is that $20,000 of extracted equity will not be enough to buy $200,000 worth of land, but it might be enough to buy a $40,000 lot.

You could also get a break on the expenses if you were to use your house as additional collateral in the form of a pool of properties. Some lenders are weary of getting involved in lending to primary residences as it requires a lot more paperwork.

So far all I have gone over is pretty much structure, but the difficult part has not even started. That is, how is the deal going to make sense from a repayment standpoint. Having your husband with the income involved would be a plus, but then it would depend on his level of income and personal cash flow after living expenses.

How about some kind of seller financing?

The land which I hope to purchase is around $20,000.00. My mobile home I am guessing worth 10,000.00. My personal mobile and land a total worth of around 40,000.00. Husband makes around 28,000.00 a year.
Living expenses run around 14,000.00 year.
Rose

If you can live with the additional risk of having a loan in your mobile home, and your husband is willing to sign on the loan, getting a loan on it and the land should be the cheapest source of money.

Take into consideration that most lenders only lend if the mobile home is attached to the property.


By the way, this is a lot of educated guessing as I have never underwritten a residential loan, much less one for a mobile home.