How to Qualify to Buy in a Simi Valley Mobile Home Park/Community

What You Need to Know About Simi Valley and Moorpark California Mobile Home Parks; How to Qualify; Park Rules and more…

My First Real Estate related sale ever was a mobile home….Really, it was!

People call me all of the time after landing on my webpage and they have all kinds of questions. I am doing this podcast in the hope that I can direct callers to this post, and they can get the scoop before they call me. You can listen to the Podcast By clicking the player above.

Mobile Home Communities in Simi Valley and Moorpark, California

First, Mobile Home Parks are not the dumping ground for the poor and downtrodden. They are for the most part, really nice places. Mobile home communities have Pools, Community meeting rooms with card tables, pool tables, cooking and banquet facilities for a special occasions. Many of these communities, especially in Simi Valley and Moorpark have Pools, spas, some even have tennis and basketball courts. These are pretty nice places my friends.

So what I’m saying is there are rules against moving in your  crazy relative or drug addicted child you want out of your house. There are very strict standards that these parks stick to, and tenants must agree to those rules and follow them as well.

The Buyer of the Mobile Home Must Be The Person Living There

If you are buying the mobile home with the thought of renting it out to a tenant, you cannot.  Mobile home management will not allow you to rent or sublet your mobile home. On top of that, park management wants to know who is living in your mobile home.

Parks want to know about other adults living in the same unit. Especially if it is a 55 and older park, Like in a Senior Mobile Home Community.

They want to know about each adult living on the property.  So if you have your brother move in, or you get married, management wants to know the financial situation of of the new occupant. Will he or she be a benefit to the collective, or will they be a burden on the mobile home owner.

The Buyer Needs a Good Credit Score

When you make an appointment with the park to see if you qualify,  you will need to bring in tax returns and current bank statements, pay check stubs and the like. Your credit score must be 650-675 or better to qualify for most parks, but there are some exceptions. They look at your credit history and determine that you had a steady record for your whole life, then life happened and things went south, only to be corrected within a reasonable period of time. Blips in credit history are not uncommon and often they can be factored in.

Yearly Credit Checks

Some parks also may want to monitor your financial situation to make sure you can continue to keep paying. Some of these parks require that you bring in proof once a year as to your state of financials.

The Buyer Needs to Show a Good Income to Expense Ratio

You will need to prove to the park, that you make enough money to pay for your space rent and possibly your mortgage including utilities, food, a car payment and insurance, all the necessities of life.  All of this without having to resort to eating cat food.  This is serious business and it is a business. If the park cannot collect space rent and money for utilities that the deliver to your doorstep, they can take immediate action to remove you from the park. With or without your home in tow.

We had a listing where the buyer had cash to purchase the mobile home. It was the one he grew up next to when he was a kid. He even remembered the trees planted by his dad on the side of the property, now 30 plus feel tall. He had just sold his condo in Woodranch and had a pocket full of money,  but his credit score was awful. The park denied his application. Just like that!

Parks Have Pet Restrictions

Simi Valley and Moorpark Mobile Home Parks have restrictions as to the number and the size of your pet.  You are limited to one dog, a limited weight and limited size. Smallish. See each park for details. You may be limited to breed as well. Cats? One…maybe two. Pigs???? Not!!!

Restrictions On Adding on to Your Mobile/Modular Home

Parks Frown on Expanding or Building on Your Space

Building a structure on your lot separate from your existing home, fences or  an outdoor office space is strictly prohibited and frowned upon. If you are cited, after a couple of warnings, the park can, and probably will begin eviction proceedings where the parks legal fees will be paid by the homeowner. The homeowner, even if they own the mobile home free and clear, can be forced to sell the unit in 60 days, or walk away. It costs too much to move a mobile so it will either be worked on and sold by the park, or removed and a new unit will be put in by the park, and they will find a new tenant or buyer. Sounds cruel doesn’t it?

and finally………………

Lending on Mobile Homes is Different Than Lending on “Real Property”

Lending on Mobile Homes Requires Large Down Payments, Higher Interest Rates and Shorter Repayment Terms

First of all, mobile homes are considered personal property not Real Property. That means they are considered more like a car than a house. Down payments are larger and terms of the loan are shorter.

 I Get questions all the time about financing of mobile homes. Mobile home lenders are different breed of lender. Mobile homes for the most part used to be registered with the DMV. They had vehicle license tags, axles, the whole 9 yards.

Mobile homes that were built before June of 1976 are known as Pre-HUD mobile homes. Homes built after June of 1976 are called modular homes and are of course, post HUD. Pre HUD Mobile Homes were built from less safe materials. The safety standards were improved greatly in homes built after 1976.

Lenders therefore will require at least 25% down on a mobile home built Pre HUD. You will find that interest rates are higher and loan terms are shorter for mobile homes of any age. Generally 10-15 years at the longest.

So let’s review

  • Lending on Mobile Homes is different from a regular home loan.
  • You must qualify with any park you move into.
  • The buyer of the home must be the person living in the home.
  • The park needs to know about any adult living in the unit.
  • Senior Parks are very strict about minors staying too long with their grandparents.
  • There are limits on animals.
  • You need a 650-675 or better credit score.
  • You need to prove your income and have good income to debt ratios and make enough $$
  • You need to follow park rules and the contract you sign when you apply for the park.

Okay. Now if after reading through all this, and listening to my Podcast if you think you would like to buy a mobile home in Simi Valley or Moorpark California, Call me at 818-426-6415 and let’s see what I can do for you.

That’s all I have for you today on the Southern California Real Estate Answer Man Show. Thank you for listening all of the way through. I I want to remind you that if you are looking to buy or sell a home in Simi Valley, Moorpark or Thousand Oaks, in The San Fernando Valley Burbank or Hollywood, I am a real live Real estate Agent and I would be pleased to assist you in your Real Estate endeavors. I work along with my lovely wife Debra Kessler, also a Top Producing real estate agent with Troop Real Estate. We work with the latest tools in the Real Estate Industry; we are tech savvy agents. We make and produce our own YouTube videos and podcasts. We use you tube to market your properties.   We have the tools and the experience needed for you to have a smooth and successful real estate transaction. We are backed by the largest and most successful Independent real estate broker in Ventura County. Troop real estate is a full service brokerage with Escrow, Title and Mortgage bankers as well. And Debra and I have a support team that would make others blush. So what I’m saying is, we want to be your Real Estate Agents for Life. Give us a call at 818-426-6415 and visit our website at www.barrykessler.com,  watch my YouTube Videos, listen to all of my podcasts and read my blogs about real estate buying and selling as well as places to visit in Southern California. And while you are at it, peruse the properties on my website and have fun.   

 I have restaurant reviews as well as neighborhood reviews and information. If you have any questions or if you have a question that you would like me to answer in an upcoming podcast, send me an email and maybe your question will become my next episode of the Real Estate Answer Man Show.

Until then, happy house hunting and I hope to be handing you the keys to your new home.

Thanks for listening, and please join me again for another episode of the Real Estate Answer Man Show.