Aerial view of a singlewide mobile home on land North of San Antonio.
For many people buying a home on a secluded, quiet piece of land with an amazing view is the ultimate goal. No neighbors, traffic, or noise. The tough part about making this dream happen is knowing which route to go to purchase the land and home together. This can be a very intimidating task.
Often, our team is asked how to go about this process so we put together a list of the options you will have as well as some tips to make the process go as smooth as possible.
1.) Buy land from a manufactured retailer
It is very common for retailers to have land they have purchased and will resell to customers. This process can get you land much faster without having to do all the additional shopping around. The down side to using this option is that the retailer has bought the land at the same price you could have bought it for but they now have thrown on their marked up cost to make a profit. If you have the time and patience to search for land then this would not be the route to go.
2.) Owner financed land
If you do not have the credit available to purchase land from the bank a great option would be to find a piece of property where the owner will finance the cost of the land with a low down payment. Depending on the seller you may pay a little more in interest but, in the future when you qualify you can get a loan from the bank for the land at lower rate. Owner financing the land will help you to own the land immediately.
To get the seller to hold the land while you go through the approval process for the home you can leave a down payment, or earnest money (Always, make sure you get everything in writing). You do not want to finalize the purchase of the land until you have closed on your loan with the bank for your home.
One down side to going this route would be that you would not be able to finance all the land and utility work (base pad, water, electric, sewage, etc.) into the loan so this would most likely have to be paid from you out of pocket. A way to avoid this would be to find a piece of land where a home has been on before and that already has everything set up and ready to have a home delivered.
3.) Let a realtor help you find land
The ideal option when finding land would be to use a realtor that is familiar with the area you want to live. This route would prevent you from paying a higher interest rate for owner financing and keeps the cost low instead of paying for the retailer’s mark ups.
To go this direction you would need a pre approval from the bank where you are getting the mobile home from. Let your sales rep for the mobile home know you want to have the land included with the loan of the home. You would need to tell them the area you want to live as well as the desired land size. With this information they will estimate how much the total project will be and get you preapproved from the bank.
Once you have the approval, a realtor can do all the hard work for you and narrow down a few options to look at. Usually the manufactured home retailer will have relationships with realtors they trust. If you decide to use your own realtor do not do an application with them, as most the banks do not work with manufactured home loans, and very few realtors are familiar with the manufactured home loan process. Let your mobile home retailer be the expert when working with the banks
Another positive when going the direction of having the land and home on the loan is that you can include most site and utility work needed. No need to pay a huge contractor bill upfront.
Thank you for reading. If you are in the market for a new manufactured home and need an honest team to help you out with the process please visit our website at braustin.sanantoniosalescoach.com to view our publicly posted, no haggle, upfront pricing.