For any experts out there who has done it before…What are the steps I should take to finance a MH for a buyer? It’s not a Lonnie deal because I don’t own it. I am just acting as the bank. I assume we need an application and ask for all the standard relevant information. I would forget the credit check in this case because they already told me that their credit was shot to heck the last few years due to some legal problems. They supposedly have one steady fixed retirement check from the husband approximately $1700/mo and the wife works and nets another $1700-$1800/mo. If I could confirm that, would you hesitate loaning the money out? They are buying a 2004’ MH at $93,000 and planning to put down $10,000 as deposit. (Yes, they cost that much in Calif.) Lot rent is $375, so I figure if I could work their payment to around $1,000/mo, it should be comfortable enough for them being that will approximately be 1/3 of their take home. Please let me know if this thinking is on track.
Other than if I should do this deal. What I need help with are the forms I need to do this transaction. What else do I need besides an application and perhaps make sure the MH is physically there for purchase. Do I need to do title search? Where do I go for that? Where could I go to get the right form to do the loan part of this deal. (The Truth in Lending equivalence) that shows the specifics of the loan, ie, interest rate, term etc.
Also, what do you recommend is a good rate to charge so that I won’t violate any usury law. The borrower and the MH are both located in California. Do I need to have some special license? permit? to do this deal?
Any help you could provide would be greatly appreciated.
Thank you in advance.