Common Questions About Loans for Manufactured Home and Land Packages

Did you know you can finance a manufactured home with land? If you’re unfamiliar with Vanderbilt, you might not know all the possibilities there are for your potential land and property. Let’s check out how these loans work and dive into a few of the questions you might have about the details.

When purchasing a new or used manufactured home, you may want to include the purchase of land in your mortgage loan. In addition, there may be an opportunity to use land you already own as collateral. There are plenty of scenarios in which you might find yourself able to get a home loan with land involved. Here are some common questions you might have.

What are the benefits of a purchasing a manufactured home and land in the same loan?

There can be many advantages to a land and home mortgage. Here are some of the main benefits:

• One application and approval
• Depending on the state, there may be an option to bundle the taxes for both the home and land.
• Can potentially finance in land improvements such as: a septic system, well, garage, driveway, or permanent foundation.
• Possibility of converting your manufactured home title to real property (depends on state requirements)

What are some example land situations in which Vanderbilt customers pair their home with land?

The most common land situations are:

• Owned land
• Land you have payments on
• Finding land to buy

In this context, owned land means you own it free and clear, whether you paid cash in full for it, paid off a land loan or it was given to you. At Vanderbilt, you may be able to offer that land as collateral , which provides security to the lender while you repay the loan. Land as collateral is referred to as land in lieu which means that you use your land value in place of or towards a down payment. This may be a good option for qualifying customers that want to use less money up front. Be sure to ask your Loan Specialist for more details.

Next, for land you’re making payments on, this means you may already own the land and you owe another person or entity, payments. At Vanderbilt, you may be able to pay off the existing loan and lump it into your new home loan with a new mortgage. We sometimes refer to this as a “purchase payoff.”

Lastly, you can search for land to pair with your home. You might look at local listings online, check with parks for availability if you’d like to be in a community or you might work with a manufactured home center to find land for your home. In these cases, you would buy the manufactured home and land together with one loan.

Can a manufactured home center help me find land?

Yes! If you’re looking for land to go with your new manufactured home, you may be able to find it through a home center. Home centers often have two land avenues: land owned by a home center or connecting you with a trusted, local real estate agent. Check with your local home center to see what’s offered in your area.

• Many home centers have move in ready, new manufactured homes set up in subdivisions or communities that they own which they can offer to customers. These options depend on the location, availability and qualifications. Each area has local codes and rules that must be complied with. Your local home center knows these well and will help you every step of the way.
• If you find a new manufactured home and want it placed on local land, your home center most likely can help you find a local real estate agent. Of course, if you already have someone in mind, you can utilize them as well!

If you have more questions, please visit your local home center to see what options may be available to you.

What should I consider in choosing land?

There’s a lot to consider when choosing a location for your home. Here are a few things to get you thinking:

Accessibility to Land

• Trees and power lines that will impede transport
• Zoning for a manufactured home
• If in park, rules and regulations
• Lot size
• Are utilities, waste, and water present, or will any need to be added?
• Route for home
• What permits are needed (examples: septic, building, transport/moving)

Preparing the Land

Some home centers will navigate the land prep through contractors for you. In other situations, you may have to hire contractors yourself to prep your land. Typically, they level the land and check the soil type. They will lay whatever foundation is needed (if the home site needs it), and prep for utilities if not previously done. Then they usually will hook everything up and test connections. Looking for more details? Check out our article on prepping your land to get started in your process or research.

Those are just a few answers to the most common questions, but we hope that they help you in your consideration of a land and home mortgage. As you weigh the options, be sure to be preparing financially as well. Check out our guide to help you prepare, so no matter what you choose – you’ll be ready!