the loan officer you work with understands multi-family loans and all the requirements one needs to get the loan approved. Otherwise, you’re better off working with someone else — a different lender who knows what they’re doing and knows the ins-and-outs of this complicated type of loan. Vacant Land / Vacant Lots: One would think that buying a piece of land with nothing on it would be the easiest loan to obtain. However, it’s actually incredibly difficult. Banks prefer not to loan on vacant land because the market is so much smaller. Furthermore, if there are issues after the lot purchase, the buyer is more likely to simply walk away because there is nothing there of any material value. It doesn’t mean that a buyer can’t get approved for a loan to purchase vacant land or vacant lots. However, the requirements are very strict. The lenders often want more money down and use stricter credit requirements. If your buyer is going to be seeking a loan on vacant land or a vacant lot, make sure that your lender knows what he/she doing and understands all the intricacies of a vacant land loan. Mobile Homes: Once again, you’d think mobile homes would be easy, but nope. Mobile and manufactured homes present more complexity in obtaining a mortgage loan because a mobile/ manufactured home will depreciate in value so much faster than a traditional home. This makes the underwriter’s job more difficult as there are a lot more items to check off on the list than there would be for a traditional home. The age of a mobile home is probably the biggest factor in a mobile home mortgage. If the home is old, outdated, or in poor condition, the lender may not approve the loan. Lenders have various requirements for how old a mobile home can be before the loan will automatically be rejected.
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