Borrower’s Cost of Buying a Manufactured Home
By Martha Pacheco – Senior Loan Officer – Bank of England
Appraisal (Out of pocket fee) – Cost $625.00 Appraiser’s do not work for the bank. They are independent and they set their own fees. Borrowers will complete a credit card authorization and we collect $625.00 at the beginning of the loan process.
Engineer Certificate (Paid at closing) – Cost $450.00 Manufactured units (All) will need an engineer inspection . (FHA) engineer inspection will be in the crawl space, which.requires the vapor barrier (0.06 plastic) covering all dirt and above the unit flooring. Piers cannot be dry stacked, They must be cemented with surewall. Tie downs must be below the frostline. (Conventional) requires the engineer inspection to cover any structures attached to the unit. ex: decks, railings, carports, etc.
IBTS (Out of pocket fee) – Cost $125.00 per each item needed Manufactured units have HUD tags attached to each end of the unit outside. They have compliance certificates inside the laundry room or the one of the kitchen cabinets. The appraiser will note if these items are there or missing. If they are missing we will have to order the IBTS for each missing item and it will be $125.00 for HUD tags and $150.00 for Compliance certificates. This takes 3-7 days to receive so we need to order as soon as we know something is missing. For a RUSH order or next day the fees will be higher.
Homeowners Inspection (Out of pocket fee) – Cost is determined by inspector. Realtor will order this inspection. As a lender we highly recommend you follow the recommendation of your realtor.
Estimated Closing Cost Fees
Attorney Fees (Varies) $1000.00 – $1500.00
Credit Report (Varies) $45.00 – $250.00 Sometimes we have to improve borrowers credit score so the cost would increase so this is why the large range.
Deed Preparation fee (Varies) $150.00
Title Work Preparation Fee (Varies) $400.00 – $650.00
Recording Fee (Varies) $95.00 – $140.00
Prepaids (Varies) This depends on your loan amount.
*Homeowners Insurance
*Property Taxes
*Prepaid Interest
*Mortgage Insurance (if applies)
Escrow Prepaids (Varies) If you are going to have an escrow account you will pay additional closing cost to set up the account; however the attorney will collect the months the lender requires. This changes each month since it is determined by when the real estate taxes and homeowners insurance is due for the year.
Closing Cost Estimate Closing cost all depends on the loan amount. A good rule of thumb is to estimate 4 percent of the loan amount.
Credit Score Requirement
Credit Ranges
Tier 1 580 – 619
Tier 2 620 – 680
Tier 3 681 – 725
Tier 4 726 – 800+
Your credit scores determine the interest rate you will receive for your loan. Better your credit score the better the rate you will receive for your loan.
The above Tier’s are the ranges that lenders use to determine the rate.
Tier 1 – LOW credit score range. In order to get approved at this low credit score you would need to have a larger down payment and reserves. Ex: 10 percent is usually enough to get the approval. Also 2 -3 months reserves for the total home payment.
My recommendation is to try and increase your credit score.
Tier 2 – FAIR credit score range. This credit score is very possible to still get an approval with the minimum down payment with whatever loan product you are using. Best to have at least 1 to 2 months reserves for total payment but not mandatory to get an approval.
Tier 3 – GOOD credit score range You can get approval with minimum down payment with whatever loan product you are using. No Reserves required usually. .
Tier 4 – EXCELLENT credit score range. You will get the best rate available with the minimum down payment. No reserves will be required.
If you have any further questions feel free to call me at the number below
Martha Pacheco
Senior Loan Officer
828.768.1103
mpacheco@boemortgage.com
www.marthapachecoboe.com
APPLY ONLINE
boeapply.com/Martha