I am looking for a loan on a 3-bedroom 2-bath, 1200' 1995 Fleetwood Manufactured home. I have qualified for a $10k loan for a new roof & other improvements but the interest rate is 42%. In California, these homes that are located parks (Senior Park, in my case) are considered real property because the land is not owned by the home owner. I have less than stellar credit but own this home free and clear. The home is fully insured and their are no other liens against this real property. Is there a strategy to obtain a different type of loan?

  • 1
    Unfortunately you probably simply need "a personal loan". (ie an unsecured loan.) It will be "a high rate" but nothing like 40%.
    – Fattie
    Aug 20 '18 at 6:27
  • 42% per year? Are you sure about that? Or 42% total?
    – RonJohn
    Aug 21 '18 at 18:37
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    @RonJohn If I pay minimum payments for 72 months, the $10,000 loan + fees results in a total amount of $29k and some change. Since the loan is needed for less than 1 year, I have no penalties for early pay off.
    – PascaL
    Aug 22 '18 at 19:46
  • $10K at 42% APR for 6 years is $119K (with interest computed monthly). What you describe is an 18% loan.
    – RonJohn
    Aug 22 '18 at 20:24
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    Annual Percentage Rate 44.9875%
    – PascaL
    Aug 22 '18 at 21:13

Unfortunately, manufactured homes (aka mobile homes although they are rarely moved after their initial siting) are usually considered by banks to be on par with unsecured loans:

  • you often don’t own the land beneath the building
  • the building is often of very cheap quality
  • finding a buyer can be difficult and often only for much less than the initial purchase
  • people who live in manufactured homes are often in precarious financial straits to begin with

A manufactured home is (usually) not a good investment as it will never appreciate in value — and the situation is much worse if you don’t own the land beneath it as then you are not in control of the rent charged for the land and hookups, so you cannot easily forecast whether it’ll be better than renting an apartment (which you would be able to easily leave if the rent went up).

This is why banks are loathe to lend. That said 42% is usurious. You might try your local credit union but you’re essentially getting an unsecured loan so you’ll get the worst rate.

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    Also the OP states its in a Senior Park, meaning that residents have to be, typically, 55 or older. This makes it even more difficult to sell.
    – user71659
    Aug 20 '18 at 22:40

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