Investing in a Park Model Vacation Home Down Payment
The days of zero down loans has gone by the wayside. Investing in a park model vacation home now requires a size-able down payment to qualify for a loan. Usually a minimum down payment is considered to be 5%, but for those who are looking to investing in a Park Model vacation home and already have some other mortgages or mobile home loans, the number quickly rises as high as 20%.
There are several reasons why lenders are now requiring loan applicants investing in a Park Model vacation home to not only show up with a sizeable down payment – in addition to a good credit record – but even want proof that this down payment has not been borrowed from a third party or even their own home’s equity. To make loans a bit more palatable, sellers and even financiers oftentimes make deals with qualified loan applicants to make the deal just a bit sweeter.
This usually refers to splitting appraisal fees, discounting closing costs for the loan, or even waiving certain fees and costs altogether. This does not lessen the importance of using personally available earnest money when investing in a Park Model vacation home. It only ensures once the money is spent, the client is not left without the means of affording to see the transaction through to the end.
Of course, with currently low interest rates, it is not surprising there are plenty of applicants and that banks are willing – and able – to continue lending on mobile homes for those looking for their vacation properties.
Tags: financing options, manufactured home sales, mortgages, park model