There are many things you need to know before you can even qualify to purchase a mobile home in a Simi Valley or Moorpark mobile home park. Many prospective buyers are not aware of the many rules and regulations set by these mobile home parks.
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My First real estate sale ever was a mobile home. As I was showing properties at all of these parks, I decided to take pictures and create a web page that would be a review of all of the parks in Simi Valley and Moorpark. Over the years, this page has become very popular. I get calls from it every day from people who are curious about Mobile Home Parks. With rents so high here in Southern California, it is natural to see more interest in the parks.
The reason I am doing this podcast and writing this post, is I am hoping to direct callers to this post, and hope that they have a listen, and they can get the information they are looking for and more, on mobile home parks before they call me.
First, Mobile Home Parks are not the dumping ground for the poor and downtrodden. They are for the most part, really nice places. Pools, Community meeting rooms with card tables, pool tables, cooking and banquet facilities for a special occasion. Pools, spas, some with tennis and basketball courts nice places.
So what I’m saying is if you are thinking about moving your ex wife into a nice mobile home park or maybe you have a crazy relative or drug addicted child you want out of your house. You can’t do that. There are very strict standards that these parks stick to, and tenants must agree to abide to the rules in the lease that you sign with the park.
Lending on Mobile Homes
Due to the fact that Mobile Homes or Modular Homes are considered Personal Property rather than Real Property, lending on Mobile Homes Requires Large Down Payments, Higher Interest Rates and Shorter Repayment Terms.
I Get questions on 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. That is why they are treated as Personal Property.
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. For a comprehensive up-to-date list of mobile home lenders, send an email to me, and I will send you the list.
The buyer of the mobile home must be the person living there.
When you buy a mobile home, the park expects you to live there. They are not interested in having someone buy the unit, and rent it out, lease it out or move in someone other than that buyer. Parks also want to know about other adults living in the same unit. You might think to yourself that more adults means more income for the household, but what if the presence of that extra adult actually brings down the spending ability of the household? It does happen, and when it does, the park wants to know about that too. If it is a 55 and older park, a senior community, park management as well as park homeowners will be keeping a wary eye out for people living with residents who are under 55. They are allowed to stay with Grandma and Grandpa, but not for extended periods of time.
The Buyer Needs a Good Credit Score
A park applicant needs to show a Credit score of 650-675 or better to qualify for most parks, but there are some exceptions. Some parks will look at the entire picture of someones credit background. If the applicant was going along just fine and then, they had a foreclosure due to a job loss, then they got a job and went back on living a credit worthy life, you may find some parks will make exceptions.
The Buyer Needs to Show a Good Income to Debt / Expense Ratio
You need to prove to the park, that you make enough money to pay for your space rent and possibly your mortgage, if you finance the mobile home. So, the management will look at your Income to Debt Ratios. There are utilities, basic food and necessities to be added in. Car payments and gas and insurance. All of these things are factored into the equation to enable the park manager to decide if this applicant is park worthy.
So to qualify you will need to bring in tax returns and current bank statements, pay check stubs and the like. You will be asked to read and sign a lease with the park.The Park will also want to monitor your financials 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 financial well being.
Some may decide that you will need to be evicted and give you 2 months notice to sell your home or they can take possession of your home and ask you to move it. Then they can move it themselves and have another moved to that location, or fix up the one they just evicted you from and sell it themselves.
Parks Have Pet Restrictions
Parks have regulations and restrictions on the number and size of your pets. Most will limit the homeowner to one dog or one cat. Some breeds are discouraged and large dogs can be rejected. Many people think that discriminating against a certain breed or size dog is wrong, but let’s look at the situations the park management puts themselves into. Let’s say that a tenant is walking their small dog along the street in the park and coming in the other direction you have a smaller sized tenant with a really big dog. A dog who wants to taste the smaller dog. This scenario unfolds every day in parks near you. The park management is responsible for keeping the park safe, and that includes large, unruly dogs. Some parks have to allow comfort animals, but not all.
Restrictions on adding on to your unit
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, after a couple of warnings, the park can, and probably 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.
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, 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 Real Estate broker in Ventura County. Century 21 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.
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