This is a bit of a catch-22 where land is involved because the real value is retained in the land, not the home. A reduced amortization period on any property serves to increase the required monthly payment because the lender wants the home fully repaid while it still retains its value. However, in the absence of an appraisal or information indicating otherwise, the REL on a manufactured mobile home will be deemed by most lenders and CMHC to be 40 years less its age. Yes, today's building standards for manufactured homes are much higher than homes built pre-1992. Manufactured homes on steel frames (mobile homes) are perceived to depreciate much faster than other homes, and in that regard old mobiles in particular are extremely hard to finance, often with higher payments. So the newer the home, the easier it is to finance. The general rule is, the maximum amortization available for a loan is it's REL less 5 years. Age and condition of home - for resale financing, lenders look at the Remaining Economic Life ("REL") of all homes (site- or factory-built) before they agree to finance them.From a lender's point of view on any property they finance, their primary concern (risk) is, if they have to foreclose, will they be able to 1) sell the property quickly, and 2) get all their money back. The higher potential to appreciate makes financing real property much less risky for lenders hence lower interest rates are available. Where the land is owned, the home and land is considered "real property", which tends to appreciate in value over time much more so than personal property on leasehold land. Land ownership - is the home on leased land (called "leasehold") or owned-land (called "freehold")? Lenders can put a "mortgage" on freehold lands via the Land Titles Registry, or if you don't own the land a "chattel loan" is registered on the home in the Personal Property Registry.For an excellent primer on factory-built home foundations from our friends south of the border, see this link. Many lenders require the home be fixed to a permanent foundation (not blocked) and the more permanent the foundation is perceived, the better for financing. Foundation type - is the home sitting on a foundation considered temporary, such as wooden blocks, or a more permanent foundation such as a cement basement, or cement footing? While the CSA z240.10.1 installation standard speaks to various acceptable foundation methods, it is important to understand that lenders have their own rule books.For owned-lot financing, please continue reading. If you are looking for a loan for a manufactured/mobile home on a rented/leased lot, sorry to say but - as mortgage brokers - we currently have NO lending options available. For leased land, the lending options are fewer, generally more expensive. When you own or will own the land, there are many competitive mortgage lending options. Financing factory-built houses depends on a number of variables, with the most important being whether you are situating the house on land you own, or land you lease such as in a Land Lease Community (a.k.a.
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