Financing

Traditional home loans include the land. Homes in our community are owned by the buyer, but the land is owned by the landlord. Thus homes in our communities are in a “land lease” community. 

A manufactured home in a land lease community is classified as personal property. Traditional home loans will not provide loans unless the home includes the land, therefore traditional bank loans will not provide loans in a land lease community.

A home with land provides a "deed" to prove ownership of the property.  A Manufactured Home in a land lease community only has a "title" as personal property to prove ownership. Most banks tend to only offer loans for homes with "deeds."

Technically, loans for our type of housing are called "chattel" loans or "installment" loans for personal property, no different than a car loan.

No. FHA will not provide loans unless the land the manufactured home sits on is also owned by the buyer, thus FHA will not provide loans in a land lease community.

No. VHA will not provide loans unless the land the manufactured home sits on is also owned by the buyer, thus VHA will not provide loans in a land lease community.

Yes

Yes

Yes

650

10%

You can use any lender of your choosing to finance your acquisition, but to the best of our knowledge, the company we identify below is the only reputable one that we know who is actually making loans on Manufactured Homes in New Jersey. Contact any lender knowledgeable in this segment of the housing market; “Manufactured Housing”. As far as we know, this Manufactured Home loan provider offers loans for MANUFACTURED HOMES in a LAND LEASE COMMUNITY in New Jersey.

First Credit  Corp of NY

518-725-5000

www.Firstcreditcorp.com

Rich D'Elia

[email protected] 

First Credit Corporation of NY is a licensed New Jersey manufactured home lender that has successfully financed homes in our communities.  However, applicants seeking a manufactured home loan in our communities can apply to any lender.

Look for a loan provider who provides loans for

A) “Manufactured” Homes 

B) in a “Land Lease” Community 

C) in New Jersey

10, 15, or 20 years. How is this decided? See next section.

Between 4.75% to 7.50% What does this depend on? Both the terms and rates on manufactured homes are influenced by a number of factors including the age of the home, the total selling price, the down payment amount, and the borrower’s credit score.  The term can also be influenced by the borrower themselves, as shorter terms offer lower interest rates and savings in the long run.

Rates are determined by evaluating the year of the home, size of the home ( single or double), the borrower’s credit scores, and the down payment amount in relation to the total selling price. Well-qualified buyers (those with higher credit scores and larger down payments ) will qualify for the best rates.

The manufactured house must have homeowners insurance. Manufactured homes are required to purchase and maintain homeowners’ insurance at full replacement cost. The first year of homeowners insurance is required to be paid in full at the time of closing and escrowed into the loan. Homes located in flood zones are also required to purchase flood insurance.

Loans are specific to a house not for a certain loan amount. Why is this? Loan approvals are specific to home rather than a loan amount for several reasons. These include factors such as the age and size of the home which affect the rates available. The applicant must also be approved by the community itself. Affordability is another factor. Lending regulations in place allow the home purchase to account for a certain proportion of the borrower’s monthly expenses.  The combination of the home payment and community lot rent can cause the home’s monthly expense to become greater than the allowable percentage in relation to their monthly income.