FREQUENTLY ASKED MANUFACTURED HOME LOAN QUESTIONS

CREDIT QUESTIONS

1.   What Credit Score is Needed for a Manufactured Home Mortgage?
2.   What does the Credit Score Represent?
3.   How Can I find Out My Credit Score Before I Apply?
4.   What About Consumers with Poor or Fair credit?
5.   Where Can I get a 2nd Chance?
6.   I Have Accounts being Paid through Consumer Credit Counseling Service, Can You Help?
7.   Does getting a CCCS Completion Certificate guarantee approval?
8.   I Have Collections Appearing on My Credit Report, Can You Help Me?
9.   I Recently Filed Bankruptcy, Can You Help Me?
10. I have Unpaid Child Support Showing on My Credit Report, Can I get Financing?
11. What About Tax Liens & Judgments?
12. How Are Accounts that have been Charged Off viewed?
13. What About Repossessions and Foreclosures?
14. What if the Bad Credit is Not My Fault?
15. I Have Bad Credit. Can I use a Co-Signer with JCF Lending Group?
16. Can I Finance a Manufactured Home for My Family Member with JCF Lending Group?
17. Does JCF offer a First Time Buyer program?
18. What If I Always Pay Cash and Don't Use Credit?

DOWN PAYMENT QUESTIONS

19. Can I obtain 100% Financing for a Manufactured Home?
20. What are JCF's Down Payment Requirements?
21. Can I Borrow My Down Payment?
21. Can the Seller Help with Down Payment?
23. Do you Accept Gifted Down Payments?
24. Can I give a Cash Down Payment?

INCOME QUESTIONS

25. What Does My Debt Ratio Need to be?
26. What Are Acceptable Sources of Income if I'm Employed ?
27. What Are Acceptable Sources of Income if I'm Retired?
28. What are Acceptable Sources of Income if I'm Self-Employed?
29. What Are Acceptable Sources of Income if I'm in the Military?
30. Do You Consider Child Support?
31. What About Part Time or Seasonal Employment ?
32. What Income Sources Do Not Qualify?
33. Can I use Income from Rentals or Money I receive from a Roommate?

PURCHASE QUESTIONS

34. How Long does it take to get Approved for Purchase Financing?
35. What States Do You Offer Purchase Financing in?
35. What Types of Manufactured Homes Qualify for Financing?
37. Are there any Fees associated with Applying for Purchase Financing?
38. Is an Appraisal Required?
39. How Long is the Loan Process?
40. What are JCF's Foundation Requirements?
41. Why won't JCF Finance Manufactured Homes that Will Be Moved?
42. How are Down Payment Amounts Determined?
43. Does JCF Offer Land & Manufactured Home Financing?
44. My Manufactured Home is in a Park and/or on leased land, Can You Help?
45. My Manufactured Home is in a Co-Op Park where You Own the Land. Can you help?
46. My Manufactured Home is on an Indian Reservation, Can You Help?
47. Does JCF Finance Brand New Manufactured Homes coming from a Dealer?
48. Can I go through a Mortgage Broker when Financing with JCF?
49. Can I Buy a Manufactured Home Directly From a Home Seller or do I have to Use a Realtor?
50. What is the Minimal Amount you will Finance, and what are your Terms?
51. Is Escrow required in order to Close a Loan?

REFINANCE QUESTIONS

52. Should I Refinance My Manufactured Home?
53. How Long does it take to get Approved for a Refinance Loan?
54. What States Do You Offer Manufactured Home Refinance Loans in?
55. What Types of Manufactured Homes Qualify for Refinancing?
56, Are there any Fees associated with Applying for a Refinance Loan?
57. Is an Appraisal Required?
58. How long is the entire Loan Process?
59. Does JCF Offer Land & Manufactured Home Refinancing?
60. What are the Advantages of Refinancing my Manufactured Home?
61. I have a Clear Title on my Manufactured Home. Can I Borrow against it?
62 . My Manufactured Home is in a Park and/or on Leased Land. Can You Help?
63. My Manufactured Home is in a Co-Op park where You Own the Land. Can you refinance this?
64. I live on an Indian Reservation. Can I Refinance my Manufactured Home?
65. What is the Minimal Amount you will Finance, and what are your Terms?
66. Is Escrow required in order to Close a Loan?
67. When is a Refinance Not Advisable?

TIPS ON BUYING A USED MANUFACTURED HOME

68. How to Determine What the Manufactured Home is Worth?
69. How to Choose a Realtor/Dealer?
70. Which Manufactured Home is Right for Me?
71. How do I get the Best Deal on a Used Manufactured Home?
72. What if there are Items in The Manufactured Home that Need to Be Repaired?
73. I Found a Manufactured Home. What's Next?

DOCUMENT & LOAN SPECIFICS

74. How Long are Your Loan Approvals Good For?
75. Do Your Loans Carry Any Pre-Payment Penalties?
76. Why is My APR Rate Different from My Loan Rate?
77. Can I Ever Move My Manufactured Home if I Finance with JCF?
78. With My Documents there is a Power of Attorney For Me To Sign, Why?

 

MANUFACTURED HOME LOAN CREDIT QUESTIONS

Q:What Credit Score is Needed for a Manufactured Home Mortgage?
A: JCF Lending Group is an A paper lender and we require good to excellent credit. Currently, our minimum credit score for purchase financing is an Equifax 660, straight refinance Equifax 660 and cash out or consolidation requires an Equifax score of 700+. Manufactured Homes 1970 - 1975, in California only, requires an Equifax 700, for both purchase & refinance. JCF primarily uses Equifax Credit, but may also use Experian and Trans Union. We will look at lesser scores on a case by case basis. In all situations, you must have a minimum of 4 years of credit history in order to qualify for a manufactured home mortgage. There are no exceptions.

Q: What does the Credit Score Represent?
A: Simply put, the lower the score, the more likely you are to file bankruptcy. The higher the score, the less likely you are to file bankruptcy. Keep in mind the bureaus have no idea of your monthly income, but use other factors to determine your score. The most important factor used in determining your score is your credit card limits in relation to your outstanding balances. The higher the limit, with a low or zero balance, the better. Likewise, a consumer with credit cards at or near the maximum credit limit will equate to a lower credit score. It is also important to know that currently all credit bureaus score somewhat differently. We have seen as much as a 100 point difference between bureaus.

Q: How Can I find Out My Credit Score Before I Apply?
A: You must keep in mind that there are three major credit bureaus. They are Equifax, Experian and Trans Union. You can click on the credit bureaus above to obtain a copy of your credit report and score. You may also correct information appearing on your report that is incorrect at that time. Remember, it normally takes 30 days for the correction, but can take as long as 90 days for inaccurate information to be accurately reported on the bureaus.

Q: What About Consumers with Poor or Fair Credit?
A: Unfortunately, our low rates do not allow for us to make risky loans. But it is also important to understand why. Recent studies have shown that Seventy percent of manufactured homes that have been repossessed in recent months have been owned by people in the sub-prime category, those people with fair to poor credit records. Of the 7,000 repossessed in the last three months, nearly 5,000 were on sub-prime mortgages. Those figures jump dramatically when you look at a two year time span. Nearly 90% of consumers with poor credit will be seriously late or will have gone into collection on their Manufactured Home mortgage.

Q: Where Can I get a 2nd Chance?
A: Not with JCF Lending Group. The window for obtaining a loan with fair or poor credit is slowly closing. Most lenders that lent on fair or poor credit are no longer in business and the ones that still are request large down payments, charge outrageous closing fees and are charging 12% - 19% interest rates. Most consumers would consider this unfair, but can you imagine gambling in a casino that advertised that your odds of winning are 10%? Most people would simply find those odds unacceptable. We feel that lending to consumers with bad credit is not good for the consumer or the manufactured home industry.

Q: I Have Accounts being Paid through Consumer Credit Counseling Service, Can You Help?
A: No. If you are currently in a CCCS program or any other type of similar program, we cannot assist you until you receive your letter and/or certificate of completion from that particular program. You must keep in mind using a credit/debt counseling service is comparable to filing a repayment type bankruptcy. Legitimate programs such as CCCS will have you sign an agreement that states you will not procure any new credit when you are in the program.

Q: Does getting a CCCS Completion Certificate guarantee approval?
A: No. First and foremost, you must realize that there are several programs out there offered by legitimate services such as CCCS and other non-legitimate services that do more harm than good. All programs have one thing in common, they retain a portion of your monthly payment as a commission and/or fee. This comes directly out of the creditors pocket and may be reported to the credit bureaus, in many cases, as "Settled for Less Than Balance" or in some cases the accounts will show "Charged Off". In other instances, your service and/or program may not pay your credit accounts by the due date, causing multiple late payments to appear on your credit reports that will be reported for up to seven years.

Q: I Have Collections Appearing on My Credit Report, Can You Help Me?
A: First, any collections appearing on your report will need to be paid prior to the time of close, which means that funds from your loan, in the case of a manufactured home refinance consolidation loan can not be used to pay the outstanding collection(s). Assuming your collection(s) are paid, the type of collection can greatly affect your credit score. An unpaid hospital or doctor bill would have less effect than a utilities collection. Overall, collections have a very negative impact on your credit score and profile. JCF will require a customer explanation on all collections and will require that explanation in writing.

Q: I Recently Filed Bankruptcy, Can You Help Me?
A: In general, your bankruptcy must have discharged for a minimum of 4 years before JCF Lending Group would consider your application. You must keep in mind that there are two common types of bankruptcy, Chapter 7, where your debts are wiped out completely upon the discharge date. There is also a Chapter 13, where you pay a portion of your debts over a period of time, normally 3 - 5 years, after which time the bankruptcy will be considered discharged. Meeting the 4 year minimum does not guarantee approval. Consumers must have re-established their credit after the discharge date, have an installment loan for a minimum of 2 years and cannot have any derogatory credit after the bankruptcy. An installment loan is normally, but not limited to, a car loan.

Q: I have Unpaid Child Support Showing on My Credit Report, Can I get Financing?
A: JCF, along with most lenders cannot or will not lend to consumers with outstanding child support payments due. To qualify for financing, you would need to show that your child support has been brought back to current and we would need written proof of this prior to the funding of any loan. Lenders look at child support as a monthly obligation, just like a credit card or car payment. In the case of a refinance debt consolidation loan, funds from the loan can not be used to pay the child support obligation.

Q: What About Tax Liens & Judgments?
A: JCF requires that all judgments and liens, to include tax liens, be paid in full. We will not consider consumers who are on or have made a payment agreement with the sources involved. Also, it is important to point out that the very reason for posting the judgment or lien is stop a person from obtaining credit prior to payment of such lien or judgment. In the case of a refinance debt consolidation loan, funds from the loan can not be used to pay liens or judgments.

Q: How Are Accounts that have been Charged Off viewed?
A: Overall, very negatively, by both JCF and the credit bureaus. Because an account has been charged off, we will not require that account be paid. We will, however, look at charged off accounts on a case by case basis. The charge off must have occurred at least 24 months prior to applying for credit. Multiple charged off accounts will result in a decline. Charged off accounts are one of the most damaging items that can appear on your credit report and/or profile. Normally a charged off account means that all collection efforts attempted by the creditor were ignored and the creditor felt that the debt was un collectable.

Q: What About Repossessions and Foreclosures?
A: There is always an understandable reason why your car or home was repossessed or foreclosed upon, but the impact on your credit could not be worse. As a rule, a recent repossession will be considered as cause for an automatic decline. We may consider repossessions as long as the repossession occurred at least four years prior to application. Again, this is on a case by case basis. Foreclosures appearing on your credit report are always cause for an automatic decline. Your home and your primary transportation should always be your first concern.

Q: What if the Bad Credit is Not My Fault?
A: Bad credit normally never is, as far as what we have been told. The culprit is normally an ex-spouse, business partner, girlfriend, boyfriend, or family member. In the last few years, identity theft has risen to the top of the list. It is your responsibility to check all three of your credit reports annually to check for inaccurate information. Unfortunately, even consumers who fell behind due to illness have to meet our credit standards. If your name is on an account, either as a co-signer, authorized user, or on a joint account, you are legally responsible, even if the other person agrees to pay by way of verbal agreement, contract or divorce decree. If this person does not pay the debt, you are financially responsible, and the lending institution can come after you for the unpaid balance. This can greatly affect your credit rating and score.

Q: I Have Bad Credit. Can I use a Co-Signer with JCF Lending Group?
A: No. Every applicant must meet our credit criteria. We would caution potential consumers looking for this solution, as most upscale parks and leased lot communities will not grant approval for residency for consumers with a poor credit history. Normally, all occupants over the age of 18 that plan to live in a manufactured home park or leased lot community must pass both a credit and criminal background check.

Q: Can I Finance a Manufactured Home for My Family Member with JCF Lending Group?
A: No. All applicants must live in the manufactured home. Many times consumers will apply for a manufactured home mortgage stating that the manufactured home they wish to purchase will be their primary residence. If we discover within a one (1) year period of time that the applicant(s) that initiated the loan do not, in fact, reside in the manufactured home, your loan agreement allows us to repossess the manufactured home and retain any down payment and/or equity that may be present. Your application will be considered fraudulent and possible criminal charges may be initiated. We have several ways to verify residency. Also, it is important to realize most parks and leased lot manufactured home communities require ownership of the manufactured home in order to live in the park or community.

Q: Does JCF offer a First Time Buyer Program?
A: Yes. We do not require previous manufactured home ownership for an approval. This does not mean that we can can approve consumers with limited credit, as stated, we are an A paper lender. Unfortunately, this term is normally used by consumers with less than perfect credit. Buying your first manufactured home should not be confused with trying to purchase with fair or poor credit. We do require a minimum of four (4) years of credit depth, with no less than two (2) years of Installment credit, which is normally, but not limited to an automobile loan. An applicant who is 20 years old, even though they have established credit, and paid their bills on time, would not meet our criteria because of the limited credit depth.

Q: What If I Always Pay Cash and Don't Use Credit?
A: We hear this question quite commonly and the answer is quite simple. If you have always made your large purchases with cash, then continue by paying for your manufactured home purchase with cash. Many consumers live their lives, avoiding credit cards and paying for automobiles with cash from savings. Lenders make credit decisions based on your previous credit experience, no experience, no loan. Something interesting to point out, recent studies have shown that 80% of the consumers that say they "Have no credit", normally have negative items appearing on their credit reports that have stopped them from obtaining credit. Another 10%, do not have credit due to, recent extending prison terms, the social security number they are using is not their own and most commonly their are illegal aliens, using a purchased social security card. Finally the remaining 10%, truly use cash as an option of choice.

MANUFACTURED HOME LOAN DOWN PAYMENT QUESTIONS

Q: Can I obtain 100% Financing for a Manufactured Home?
A: No. We require a minimum 5% down payment on all purchase transactions. We should be clear that a 5% down payment may not be acceptable in all cases. The final determination if a 5% down payment will be sufficient will be determined by either an Advanced Book Value Report or an appraisal. The year of the manufactured home determines the maximum LTV or loan to value of the manufactured home in question. Manufactured homes 15 years and newer should qualify for the 5% down payment program, but in some cases, an older manufactured home will qualify for this program as well. For example, a 1982 manufactured home that appraises for $100,000, but the sales price is $50,000, should qualify for the 5% down payment because of the equity involved. The appraisal or book value report can offset the needed down payment either positively or negatively.

Updated Policy: Consumers with multiple current mortgages and/or residences, to include vacation homes, will now be required to have a minimum down payment of 20% on all purchases. This policy change is due to the recent influx of consumers wishing to walk away their current home, in favor of more affordable housing. This policy is only a temporary change until the housing market has recovered. Consumers wishing to purchase a manufactured home as their primary and only residence can still enjoy down payments as low as 5%.

Q: What are JCF's Manufactured Home Down Payment Requirements?
A: As stated above, we require a minimum of 5% down payment for our manufactured home purchase program with rate breaks at 10% & 20%. We require that consumers provide two (2) recent bank statements to support that the proceeds were in the bank and not borrowed. We also must see all down payment checks as a condition of funding. If the down payment is coming from a 401K account or a home sale, we will need to see a paper trail to support the down payment proceeds. If you are in doubt, please contact customer service for more information and/or clarification.

Q: Can I Borrow My Manufactured Home Loan Down Payment?
A: No. Your down payment can never be borrowed in the form of another loan or from a 3rd party expecting repayment. If we discover in the loan process, that your down payment was in fact borrowed, your loan will be cancelled and you will not be eligible for a refund of any appraisal or inspection fees paid to others to secure your manufactured home loan with JCF. Keep in mind that many consumers wishing to purchase a vacation manufactured home assume they can take a 2nd out on their current home for the down payment. This again will not qualify. The only exception to this rule would be funds borrowed again a 401K or pension. This will need to be approved on case by case basis.

Q: Can the Seller Help with My Down Payment?
A: No. The seller can never participate with the down payment. The seller can rebate and/or assist the buyer, such as splitting appraisal costs, or closing costs, however any monetary credit(s) can not be in lieu of down payment proceeds. Many times throughout a year we discover this, which ends badly for all parties. Your loan will be cancelled and you will not be eligible for a refund of any appraisal or inspection fees paid to others to secure your manufactured home loan with JCF. You may also risk the loss of your earnest monies, depending on your purchase agreement and applicable laws.

Q: Do you Accept Gifted Down Payments?
A: Yes, although when all or part of the down will be gifted, the minimum down payment now raises to 10%. We will require a paper trail for the gifted down payment along with a letter from the person providing the gift, stating that the gift will not need to be repaid. The donor will also need to provide a copy of the canceled check written for the gifted down payment, and a copy of their bank statement showing the gift monies in their account. The gift can not be from the seller(s), realtor or dealer. The person who gifted the monies must be a relative or personal friend. We do not accept city, county, federal or a private down payment coming from an assistance program.

Q: Can I give a Cash Down Payment?
A: You can, but you will be required to supply a paper trail of where this down payment money came from. It is always best to use cashier's checks from your bank so you have a track record of the transaction. Under the Patriot Act, we must provide proof of all down payment proceeds and where they came from. This is a Federal Requirement, not a JCF Lending Group requirement. We will also need to get a receipt from the seller stating they received the down payment from you in the form of cash.

MANUFACTURED HOME LOAN INCOME QUESTIONS

Q: What Does My Debt Ratio Need to be?
A: JCF Lending Group actually uses two different income formulas, both based off of your gross monthly income. Both formulas were conceived so that your house payment is affordable, making long term manufactured home ownership a reality. First, we look at your housing ratio. This is all payments attributed to the cost of the manufactured home you are buying or residing in, plus any other mortgages that you may be responsible for. Most of our clients live in leased lot communities where lot rent is a factor. Your new house payment plus lot rent with $50.00 added for insurance should not exceed 34% of your gross monthly income. We also consider your Debt to Income Ratio, commonly referred to as DTI. Your debt to income ratio should not be in excess of 45% of your gross monthly income. To come to this figure, we add all monthly debts appearing on your credit report, along with your new house payment, space rent and $50 insurance and divide your gross monthly income into that figure to come up with your DTI. Consumers with high credit scores can sometimes exceed these requirements on a case by case basis.

Q:What Are Acceptable Sources of Income if I'm Employed ?
A: You will need to provide to JCF Lending Group a copy of a current or your most recent paycheck stub showing year to date figures, a W-2 for the previous year, and a Verification of Employment letter on Company Letterhead stating your hire date, and current position. This letter needs to be signed and dated by a representative of your employer. JCF Lending Group will sometimes require 2 years of W-2's from your employer depending on your hire date. If you have been in the same line of work for 2 years, but at your current job for less than 1 year, we will need to obtain a W-2 from both employers, both previous and current, and letters of employment from both employers. Also, if you have been on your current job for less than one (1) year, and had a large time period between jobs, we may not be able to assist you until you have been at your current job for one (1) full year. If you are new to a job, and it is a different line of work than your previous employment, we would not be able to provide financing until you have been there for one (1) full year.

Q: What Are Acceptable Sources of Income if I'm Retired?
A: There are many types of income for retired persons. JCF Lending Group will determine what type of proof you will need to provide depending on the source. If your source of income is Social Security, we will require an award letter from the Social Security Administration, and proof of receipt of income, usually 2 months bank statements if the income is direct deposited. In the case of annuities, pensions, or withdrawals from an IRA account, we will need to see the statement sent to you by the source showing the balance, and 2 months bank statements showing the deposits. All income sources need to be deposited and/or paid on a regular basis. Simply having money in savings and/or on deposit does not by itself qualify as monthly income.

Q: What are Acceptable Sources of Income if I'm Self-Employed?
A: If an applicant is Self-Employed, JCF Lending Group requires 2 years tax returns with all schedules. A customer must be in business for a minimum of 2 full years. Our bottom line is what is being reported on Schedule C, averaged over 24 months. We cannot use gross receipts, etc. that appear on your returns. In the case that a customer owns a company or corporation and personal bills are paid through and by the business, we will require both 2 years of personal tax returns (Form 1040), and 2 years of the company or corporate tax returns

Q: What Are Acceptable Sources of Income if I'm in the Military?
A: For those customers that are currently in the Armed Forces, JCF Lending Group will require a Leave and Earnings Statement (L.E.S.) which shows your enlistment date, current rank and pay grade, and salary information. If this customer is on active duty, we will not ordinarily require a Verification of Employment letter, as this information is reported on the L.E.S. Statement. In the case where a customer works for the Military, but is considered a Civilian, we will require a paycheck stub, W-2, and a Verification of Employment letter by the Supervisor of the department.

Q: Do Your Loans Consider Child Support?
A: Yes. Child support is considered a source of income. The most basic requirement is that the support must last a minimum of 24 Months from the conception of your new loan. There are two types of child support that have different requirements. Below we have addressed both types of child support income.

Court Ordered - In this situation, we will need a copy of the court order or divorce decree, showing the child support amount and the terms of support. We will also need proof that 12 months of support has been paid and received. Proof of payment can be a statement from the court, if paid by the court or county. If paid by check from the obligated parent, 12 months bank statements or cancelled checks are normally sufficient.

Voluntary - This can be accepted on a case by case basis. We must see proof that the support payments have been paid consistently for a minimum of 24 months. As mentioned above, proof will normally consist of 24 months bank statements or cancelled checks. Child support payments with no paper trail or irregular payments cannot be considered.

Q: What About Part Time or Seasonal Employment ?
A: Part time or seasonal employment can be used for income purposes. We do require a minimum of two (2) years job time on any job considered part time or seasonal. For income determination, we average the last 2 years income derived from the part time or seasonal employment. We will require two (2) years of W-2's provided by your employer, a copy of your most recent paycheck stub, and a Verification of Employment letter on Company Letterhead stating your hire date and current position. This letter needs to be signed and dated by a representative of your employer.

Q: What Income Sources Do Not Qualify For a Manufactured Home Loan?
A: There are several sources of income that cannot be accepted: Unemployment insurance payments, both State & Federal temporary disability insurance payments, workers compensation or any employment or job where you are paid under the table or monies not declared for tax purposes cannot be considered. State and Federal disability, unemployment insurance, and workman's compensation are all considered a temporary source of income, and cannot be used or added into your monthly or annual income.

Q: Can I use Income from Rentals or Money I receive from a Roommate?
A: You can, as long as this income is declared on your tax returns. For rentals, we will require the appropriate schedule from your 1040's for a minimum of 2 years showing rental monies received, depreciation, repairs, taxes, etc. You can use income received from a roommate, again, as long as it is declared on your tax returns. We cannot accept canceled checks or letters stating the roommate pays money to live there every month.

MANUFACTURED HOME PURCHASE FINANCING QUESTIONS

Q: How Long does it take to get Approved for Manufactured Home Financing?
A: If you apply by phone, normally 15 minutes. If you apply online, normally 24-48 hours. Some applications may take slightly longer in cases where additional information is needed. If additional information is needed, we will contact the appropriate party by phone and/or email. If you need an answer fast, simply call us at (866) 967-0143. The manufactured home loan approval you receive will be valid for 60 days and cannot change in that time period.

Q: What States Do You Offer Manufactured Home Financing in?
A: We offer manufactured home financing in the following States: ALABAMA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, DELAWARE, FLORIDA, GEORGIA, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MARYLAND, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN and WYOMING.

Q: What Types of Manufactured Homes Qualify for Financing?
A: JCF Lending Group finances manufactured homes, mobile homes and park "RV" models. We can finance single and multi-section homes as follows, single section manufactured homes can be no older than 20 years. Multi-Section manufactured homes can be no older than 1977, with the exception of California, where the multi-section mobile homes can be 1970 & newer. All manufactured homes must be in good condition, and must not need major repair, to include roofing, skirting, siding and carpeting. The manufactured home must have been previously titled and cannot be a brand new manufactured home being sold by a dealer. If the manufactured home must be financed and then moved, we are not the lender for you.

Q: Are there any Fees associated with Applying for Manufactured Home Financing?
A: No, JCF Lending Group does not charge an application fee. There may, however, be fees associated with the manufactured home loan program that you choose. Once you are approved, your loan representative will go over all fees that will be financed into your new manufactured home loan. The most common out of pocket expenses would consist of homeowners insurance and the cost of an appraisal and/or inspection. If the manufactured home is in a leased lot community, there is commonly the first months rent to pay, along with a security deposit. Contact the park for details.

Q: Is an Appraisal Required For A Manufactured Home Mortgage?
A: An appraisal may or may not be required, depending on the NADA book value of the manufactured home and the amount you want to finance. An inspection is always required on every transaction. An inspection will give the overall condition of the manufactured home, and additional options of the manufactured home, such as decking, awnings, garages, etc. If we have enough value booking the manufactured home out using the inspection, an appraisal is not required. An appraisal is required if we do not have the value using the above method. Appraisals take into account recent sales from the same community, and surrounding area, community adjustments, and location to determine the value. An appraisal is almost always needed and recommended in the State of California. There are a handful of other states where an appraisal is required. Contact a JCF customer service representative for more information.

Q: How Long is the Manufactured Home Loan Process?
A: Manufactured home sales normally take 2-3 weeks, depending on if an appraisal is required. Keeping the communication channels open with your loan officer can normally always expedite the manufactured home loan process. Your loan officer will provide you with a list of items, called stipulations, that we will need you to fax or email to us. Once we have these items and your appraisal/inspection has been completed and cleared, we will be ready to send out closing paperwork.

Q: What are JCF's Foundation Requirements?
A: JCF Lending Group has no specific foundation requirements, as previously mentioned, the manufactured home must be set-up and in move-in condition, to include functioning electrical and plumbing. The manufactured home can be on blocks, iron pier settings, ground set or on a full foundation with basement. We finance the manufactured home, not the land, so we are not concerned about the manufactured home being tied to the land by way of foundation.

Q: Why Won't JCF Finance Manufactured Homes that Will Be Moved?
A: From our past experience, the amount quoted to move a manufactured home by a mover is 75% of the time inaccurate or grossly off. This might not be intentional on the part of the manufactured home mover, but it leaves many consumers with an unexpected cash outlay that they may or may not be able to come up with. The current average approximate cost to tear down, move, and re-set up a single wide manufactured home is $4,000.00. That is if the manufactured home is moved 5 miles or less. When the manufactured home is a multi-section home the average cost jumps to $10,000.00. These costs do not include the multiple fees paid to the county for trip permits, escorts, or multiple inspections that will be required before you can reside in the manufactured home. Again, many times the cost jumps dramatically higher than the quoted figures above, leaving the consumer with a manufactured home in pieces or not set-up, which they cannot legally live in.

Q: How are Down Payment Amounts Determined?
A: Our minimum acceptable down payment is 5% of the selling price. This should not be confused with loan to value, also called LTV. The value is determined by appraisal or book value which will be determined by your loan underwriter. All LTV percentages include all fees that are financed into the loan, including taxes & insurance, if applicable. As a basic rule, manufactured homes that are fifteen (15) years old or newer have an LTV of 95%, manufactured homes built from 1976 to 1994, have an 85% LTV. California mobile homes between the age of 1970 and 1975, have a 75% LTV. Overall, value times LTV equals the maximum amount to finance, including all fees.

Q: Does JCF Offer Land & Manufactured Home Financing?
A: No. JCF Lending Group is a manufactured home only lender. If there is land or acreage involved in your transaction, we are not the lender for you. JCF is not licensed to finance land or the combination of land and manufactured home. We can only finance the manufactured home when it has not been deeded together with land. Most of our customers live in manufactured home parks, communities or rented/family land situations.

Q: My Manufactured Home is in a Park and/or on leased land, Can You Help?
A: Yes. JCF specializes in this type of manufactured home financing and/or loan. In fact, this is what the name of our URL (www.chattelmortgage.net) means, a loan for a manufactured home not attached to property by way of deed or title. We offer the lowest rate & fee combination Nationwide.

Q: My Manufactured Home is in a Co-Op Park where You Own the Land. Can you help?
A: No, not at this time. Co-Op parks are not considered real property and they are not considered personal property or Chattel, the correct term. In a Co-Op park each owner buys a share. The share gives them ownership of a percentage of the park, including the roads and common areas. The land sitting under a manufactured home in a Co-Op park is not owned by the manufactured home owner, but rather all share holders in the park. So, for example, if the park has 300 homes, the ownership of the park is divided up into 300 shares. Our type personal property loans, commonly called Chattel Mortgages, have foreclosure solutions that consist of selling the manufactured home at it's current location or moving the manufactured home out of the park or from its current location. Because of the multiple owners of the land, we would need each shareholder's permission to accomplish this, which is not feasible. There are proposed law changes that may open Co-Op parks to personal property loans in the near future.

Q: My Manufactured Home is on a Indian Reservation, Can You Help?
A: No, not at this time. Indian Reservations are unique as the true ownership of the land is the Tribe, similar to a Co-Op park. As the tribe grants you land, they retain the ultimate ownership of that land and access to the reservation. In the past, we have made loans in reservations with the agreement of the tribal counsel that we could enter the reservation and/or property in the event of default. We have found that a decision by the current tribal counsel can be overridden by a future counsel, making our previous agreement null and void, leaving us without the right of repossession in the event of default.

Q: Does JCF Finance Brand New Manufactured Homes coming from a Dealer?
A: No. There are several reasons why we do not finance brand new manufactured homes from dealers. First and foremost, our approvals are only good for 60 days. Normally, it takes between 90-120 days to have a manufactured home built and delivered. Our approval would not be valid at the time of delivery. Second, the dealer is responsible for any and all warranties, either written or implied. When a lender agrees to finance a brand new manufactured home, they are, as well, bound to any promises made by the dealer. If the dealer goes out of business or does not fulfil their obligation, the lender must do this. Finally, reputable dealerships have contracts in place with lenders that pay the dealership for application origination.

Q: Can I go through a Mortgage Broker when Financing with JCF?
A: No. Unfortunately, due to Fair Lending Practices, all consumers based on their credit worthiness and the manufactured home they wish to purchase or refinance are given the same rate and applicable fees. JCF Lending Group offers the lowest rate & fee combination in the industry. This could not be accomplished by adding thousands of dollars to your new mortgage to pay commissions to a mortgage broker.

Q: Can I Buy a Manufactured Home Directly From a Home Seller or Do I have to Use a Realtor?
A: Yes, you can buy a manufactured home directly from the home seller and/or owner. We will provide all closing instruments, to include a purchase agreement and closing statements. JCF Lending Group provides a complete internal escrow service which is included with your new manufactured home loan. In many cases, buying a manufactured home directly from the seller saves the seller thousands of dollars, which can result in a lower selling price because there are no realtor commissions to pay.

Q: What is the Minimal Amount you will Finance, and what are your Terms?
A: Our minimum amount to finance is $20,000 Nationwide, with the exception of California, which is $30,000. Exceptions to our minimum to finance can be made on a case by case basis. There is no maximum amount to finance. Our terms range from 7 - 25 years, with the following basic guidelines. Our terms are dependent on the amount financed. Typically, for balances less than $40,000 we can provide a maximum term of 15 years. If the balance exceeds $40,000, we can offer a maximum term of 20 years. Exceptions can be made on the term on a case by case basis. Our California Pre-Hud program, which is mobile homes built from 1970 - 1975, caps the term at 15 years. No exceptions can be made on this regardless of the balance.

Q: Is Escrow required in order to Close a Manufactured Home Loan?
A: Escrow is not required in any state, with the exception of California, where it is mandated by law. Escrow in California is handled by a third party escrow company. You may opt for one of your own choosing, or JCF Lending Group also has friendly relationships with several escrow companies, if you prefer us to open escrow for you. In all other states, escrow is handled internally by our office, where we do all functions from titling the manufactured home, to cutting disbursement checks to realtors, if applicable, and to the seller(s).

MANUFACTURED HOME REFINANCE QUESTIONS

Q: Should I Refinance My Manufactured Home?
A: First and foremost, determine your goals when refinancing a manufactured home. There are only 3 realistic outcomes and these should be considered carefully. 1) Lower monthly payment. 2) Shorter Term. 3) Cash Out and/or consolidation of debt. Many consumers mistakenly believe that by reducing their interest rate, they can accomplish all of the options listed above in one transaction. Although it is possible, it would be uncommon and very unlikely. Making a decision to refinance your manufactured home is an important step, one that should not simply be a rush to get a lower rate. You need a goal and the patience to make a wise decision. You should also shop for a manufactured home mortgage wisely, avoid common pitfalls that may do more harm than good. Here we will detail some important aspects of possible goals and how to shop for a manufactured home loan or mortgage. We will start with realistic goals and move on how to shop for a manufactured home mortgage.

A1) Be Realistic - Ask yourself, is your credit better now than when you purchased your manufactured home? If the answer is No, is it realistic to expect a lender to offer you a lower rate? If your credit has declined, you are a higher risk and with high risk comes high interest rates. If you have trouble making your house payment now or are behind in your house payments, is it rational that a lender would want to jump into the shoes of your current lender. The answer to that is simple, it is not likely to happen. In today's times you must have good to excellent credit to get the better interest rates.

How long do you plan to live in the manufactured home? Are you selling the manufactured home or only plan to leave in the manufactured home for a short period of time? Then refinancing is never a good choice and should be avoided if possible. Refinancing should be considered for long term ownership. You must remember that most manufactured home mortgages carry fees and those fees are stacked onto your current loan balance. This means that every refinance loan has a break even point when the cost of the new mortgage has been paid for. Below is an example;

Total extra cost: (Escrow fee, loan fee, title fee, and so on.)	$1,500.00
New monthly savings per month:	$100.00
Break Even Point, where consumers see a positive benefit :	15 months

A2) Lower Monthly Payment - How much are you hoping to save each month? This is where reality hits, don't assume you will save hundreds monthly. Review our current manufactured home loan rates and then use a payment calculator to estimate your new payment. Remember to add $10 - $20 dollars to that payment for possible closing costs and fees that may be financed into your new loan. When attempting to achieve a lower monthly payment, you will be presented with a few choices, described below.

A) Keep your current remaining term on your existing mortgage. For example, if you have 178 payments left on your current mortgage, request your new loan term to be no more than 178 months. This is a wise choice for consumers looking to reduce their monthly payment, while not losing equity due to increasing the length of the loan.

B) Reducing your current term while still slightly reducing your monthly payment. This is the most beneficial type of refinance, where the consumer sees a lower payment and reduces the interest that he or she will pay. By reducing the term of a mortgage, most consumers will save thousands in direct and immediate interest savings.

C) Extending your current term for payment relief. This option should only be considered as a last resort. This option does reduce your monthly payment, but it also increases your overall interest burden and/or debt. As mentioned, this option should only be considered in extreme cases.

A3) Shorter Term - This should be the ultimate goal of anyone considering refinance, when possible. Many consumers keep their payment amount the same or in some cases slightly less, while drastically reducing their term, normally saving thousands of dollars. Below is an example, using a loan balance of $80,000.00:

Current Loan: Remaining Months: 264 Months @ 10.50% = $778.01 =	$205,394.64
New JCF Loan: 180 Months @ 6.99% = $718.62 =	$129,351.60
Overall Savings: =	$76,043.04

A3) Cash Out and/or Consolidation of Debt - Consumers looking for this type of refinance option break into two categories, consumers looking to borrow money on a clear title and those that have an existing mortgage and are looking to pull equity from their manufactured home. It is important to realize that our industry does not offer 2nd mortgages and/or equity lines of credit. If you are looking for a loan to pull equity from your manufactured home, you will need to refinance your current mortgage and establish a new mortgage. There are several reasons to consider debt consolidation or getting cash from your equity to include:

*Fewer Bills - Manufactured Home debt consolidation loans can reduce the number of bills you need to manage every month. For many borrowers, lower interest rates and fewer checks to write each month are good reasons for consolidating debt.

*Lower-Interest Payments - Typically, borrowers consolidate debt into lower-interest payments. Debt consolidation loans may help lower double-digit interest rates down to single digits, which translates into monthly interest payment savings.

*Potential Tax Savings - Manufactured home owners who choose a refinance mortgage loan to consolidate debt have the added benefit of potential tax savings. Manufactured home mortgage interest is tax-deductible, which means that interest paid on a mortgage loan used to consolidate debt is likely to be tax-deductible. Be sure to check with your tax advisor for details.

*Cash In Hand - There can be many reasons for the need for a large sum of cash, from opening a business, that much needed vacation, home improvements or your child's college tuition, the reasons can be endless.

As there are many benefits to cash out or consolidating debt, there are some drawbacks to include:

* Continued overspending - Consolidating debt can be very beneficial, but without a change in spending habits you may find yourself deeper in debt. So if overspending was the reason you needed to consolidate debt in the first place, be careful not to make the same mistake again. Don't consolidate your debt and then continue to overspend. You may consider closing the credit card accounts you have paid off with the consolidation loan.

* Extended repayment period - Most manufactured home debt consolidation loans extend the repayment period of your smaller consumer loans. So while the monthly payments and interest might be lower, you might end up paying more in the long run. The repayment period can be shortened, however, by making extra payments (in addition to the scheduled monthly mortgage payments) to reduce the manufactured home loan balance.

* Home equity depletion - Using the equity from your manufactured home to consolidate your debt can deplete home equity assets that could be used to cover true emergencies in the future. It's important to use debt consolidation responsibly so you're not left without assets when you really need the money.

The relative benefits of a manufactured home consolidation loan may vary over time and will depend on individual circumstances. The longer the manufactured home and/or loan are kept at the new lower rate and term, the more interest savings can be realized when compared to your current situation. The repayment period of a manufactured home mortgage loan can generally be shortened when additional funds above scheduled monthly mortgage payments are consistently paid and applied to reduce the loan balance.

A4) Shopping For a Manufactured Home Refinance Mortgage - Manufactured home owners living in manufactured home parks, on leased land or in other instances where the manufactured home is not attached to real property, are forced to look to the internet for lending sources, as most local banks, credit unions and mortgage brokers normally do not finance or refinance manufactured homes by themselves. This type of loan is called a "Chattel Mortgage" and/or a personal property loan. Before you even think about applying or shopping for a manufactured home refinance mortgage, gather the following items:

1) Know the year, make, model and size of your manufactured home. Many consumers know the make of their manufactured home, but not the model name. The model name is a crucial factor to the value associated with the manufactured home. Just like cars, manufactured homes have a make & model name. To make the point, we all know the Chevrolet is a brand of car. They make very inexpensive cars and very expensive luxury cars such as the Corvette. To find the model name, it may be necessary to call the manufactured home dealership you purchased the manufactured home from or possibly the manufactured home builder that built the manufactured home. The next most important factor is the size of the manufactured home. Never guess or rely on documentation, measure your manufactured home for accuracy.

2) Know Your Current Mortgage Balance . Once again, many consumers guess at their balance which when shopping for a refinance mortgage can skew your possible savings. Call your current mortgage lender, and ask for a 30 day payoff. This will give you accurate information to make a well informed decision. If you are consolidating debt, add up the items you wish to consolidate or know the amount of cash back you are requesting.

3) Have Your Credit Scores Available - Due to recent changes in the Fair Credit Reporting Act, most consumers can now go online and receive a free credit report and for a few dollars get their current credit score. JCF Lending Group, along with the bulk of the industry lenders rely on Equifax Credit, however, it might be a wise idea to be armed with all of your credit scores. You can access them at the following links, Equifax, Experian and Trans Union. By knowing your scores, you will be able to receive accurate rate & payment quotes, without jeopardizing your credit score. Having your credit run repeatedly, contrary to popular belief, can drastically reduce your score.

4) Things to Remember When Shopping For a Mortgage Online - As mentioned above, you should now have the make, model, year and size of your manufactured home. You should also know your credit scores, along with the balance on your existing mortgage. It's time to shop, but we recommend the following:

A) Avoid websites That Do Not Provide Contact & Company Address Information - Most websites that do not provide contact information are actually lead sellers or worse yet, are in the business of selling your personal information. Internet fraud is at an all time high. Never provide your personal information to an unknown source. If your only contact method is email, wisely use caution.

B) Always Avoid Websites That Promise Multiple Quotes - The bulk of these sites sell your information to mortgage brokers and to anyone else that will pay for your information. As a result, most consumers will be bombarded at home and at work by real estate mortgage brokers, who 9 times out of 10, do not lend on manufactured homes. It is also quite common to receive calls and emails from credit repair and credit counseling firms. We have heard of consumers receiving hundreds of calls at all hours of the day and night, lasting for months after the actual inquiry.

C) Get The Complete Details of Your Approval or Offer - When comparing loan approvals or offers, you need to compare the complete details of said such approval and/or offer. Never simply be satisfied with a rate and payment. Find out the particulars of the approval and/or offer. Ask for a break down of all fees, including the cost of the appraisal or inspection. Make sure all quotes and/or approvals have the same starting figure, which is: A) The amount paid to your existing lien holder. B) The amount paid to your existing lien holder, plus any debt consolidation and/or cash you may wish to receive (if applicable). C) The amount of Cash you are receiving on a clear title. All approvals should be clearly laid out and easily understandable. Here is an example of a loan approval that is provided by JCF Lending Group. The approval should also contain any conditions and/or stipulations needed.

Lien Holder Payoff:	$100,000.00
Cash to Customer:	$20,000,00
Base to Finance:	$120,000.00
Doc Prep/Escrow fee:	299.00
Federal Flood Certification:	$12.00
State Titling fee:	$20.00
Loan/ Origination Fee:	$1,200.00
Total to Finance:	$121,153.00
Term of Loan/Mortgage:	240 Months
Actual Interest Rate:	6.99%
Annual Percentage Rate (APR):	7.134%
Monthly Payment:	$938.57

Q: How Long does it take to get Approved for a Manufactured Home Refinance Loan?
A: If you apply by phone, we can normally get an approval to you in 15 minutes. If you apply online, normally 24-48 hours. Some applications may take slightly longer in cases where additional information is needed. If more information is needed, you will be contacted either by phone or email. If you need an answer fast, simply call us at (866) 967-0143. The approval you receive will be valid for 60 days and the rate cannot change in that time period.

Q: What States Do You Offer Manufactured Home Refinance Loans in?
A: We offer manufactured home refinancing in the following States: ALABAMA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, DELAWARE, FLORIDA, GEORGIA, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MARYLAND, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN and WYOMING.

Q: What Types of Mobile Homes Qualify for Refinancing?
A: JCF Lending Group refinances mobile homes, manufactured homes and park "RV" models. We can refinance single and multi-section mobile homes as follows: single section manufactured homes can be no older than 20 years. Multi-Section manufactured homes can be no older than 1977, with the exception of California, where the multi-section manufactured homes can be 1970 & newer. All manufactured homes must be in good condition, and must not need major repair, to include roofing, skirting, siding and carpeting. Manufactured homes can be located in manufactured home parks, on owned or leased land, or on private or family land.

Q: Are there any Fees associated with Applying for a Manufactured Home Refinance Loan?
A: No, JCF Lending Group does not charge an application fee. There may, however, be fees associated with the manufactured home loan program that you choose. Once you are approved, your loan representative will go over all fees that will be financed into your new manufactured home loan. The only out of pocket expense would be the cost of an appraisal and/or inspection. If the manufactured home is in a leased lot community, either an inspection or appraisal would be required. Your loan officer will let you know which you will need for the refinance. If your manufactured home is on leased, rented, owned or family land, only an inspection will be required in order to determine the value. If the manufactured home is located in a California manufactured home park, an appraisal is almost always required and recommended to determine the true value of your manufactured home.

Q: Is an Appraisal Required For A Manufactured Home Refinance Loan?
A: An appraisal may or may not be required, depending on the NADA book value of the manufactured home and the amount you want to finance. An inspection is always required on every transaction. An inspection will give the overall condition of the manufactured home, and additional options of the manufactured home, such as decking, awnings, garages, etc. If we have enough value booking the manufactured home out using the inspection, an appraisal is not required. An appraisal is required is we do not have the value using the above method. Appraisals take into account recent sales from the same community, and surrounding area, community adjustments, and location to determine the value. An appraisal is almost always needed and recommended in the State of California. There are a handful of other states where an appraisal is required. Contact a JCF customer service representative for more information.

Q: How long is the entire Manufactured Home Loan Process?
A: Manufactured home refinance loans normally take up to 2 weeks. Keeping the communication channels open with your loan officer can normally always expedite the loan process. Your loan officer will provide you with a list of items, called stipulations, that we will need you to fax or email to us. Once we have these items and your appraisal/inspection has been completed and cleared, we will be ready to send your loan documents to be signed and returned.

Q: Does JCF Offer Land & Manufactured Home Refinancing?
A: No. JCF Lending Group is a manufactured home only lender. If there is land or acreage involved in your transaction, we are not the lender for you. JCF is not licensed to finance or refinance land or the combination of land and manufactured home. We can only refinance the manufactured home when it has not been deeded together with land. Most of our customers live in manufactured home parks, communities or rented or family land situations.

Q: What are the Advantages of Refinancing my Manufactured Home?
A: There are several advantages to refinancing your manufactured home. A lower interest rate will save you money each and every month, as well as over the long term of the loan. Another advantage would be to shorten the term of your loan at a lower interest rate. The savings over the life of the loan are significant. JCF Lending Group can also offer a cash out or consolidation refinance provided your manufactured home is located in a manufactured home park or community. Take out cash from the equity in your manufactured home to do some home improvements, or do a consolidation loan to pay off those high interest credit cards.

Q: I have a Clear Title on My Manufactured Home. Can I Borrow Against it?
A: Yes, this would still be considered a refinance type loan and your manufactured home would be used as security. However, this program is only available for manufactured homes located in parks or communities, and the manufactured home must be 15 years and newer. You can use the cash for any purpose, consolidate credit cards, home improvements, vacation, or even tuition.

Q: My Manufactured Home is in a Park and/or on Leased Land. Can You Help?
A: Yes. JCF specializes in this type of manufactured home refinance and/or loan. In fact, this is what the name of our URL (www.chattelmortgage.net) means, a loan for a manufactured home not attached to property by way of deed or title. We offer the lowest rate & fee combination Nationwide.

Q: My Manufactured Home is in a Co-Op park where You Own the Land. Can you refinance this?
A: No, not at this time. Co-Op parks are not considered real property and they are not considered personal property or Chattel, the correct term. In a Co-Op park, each owner buys a share. The share gives them ownership of a percentage of the park, including the roads and common areas. The land sitting under a manufactured home in a Co-Op park is not owned by the manufactured home owner, but rather all share holders in the park. So, for example, if the park has 300 manufactured homes, the ownership of the park is divided up into 300 shares. Our type personal property loans, commonly called Chattel Mortgages, have foreclosure solutions that consist of selling the manufactured home at it's current location or moving the manufactured home out of the park or from its current location. Because of the multiple owners of the land, we would need each shareholder's permission to accomplish this, which is not feasible. There are proposed law changes that may open Co-Op parks to personal property loans in the near future.

Q: I live on an Indian Reservation. Can I Refinance my Manufactured Home?
A: No, not at this time. Indian Reservations are unique as the true ownership of the land is the Tribe, similar to a Co-Op park. As the tribe grants you land, they retain the ultimate ownership of that land and access to the reservation. In the past, we have made loans in reservations with the agreement of the tribal counsel that we could enter the reservation and/or property in the event of default. We have found that a decision by the current tribal counsel can be overridden by a future counsel, making our previous agreement null and void, leaving us without the right of repossession in the event of default.

Q: What is the Minimal Amount you will Finance, and what are your Terms?
A: Our minimum amount to finance is $20,000 Nationwide, with the exception of California, which is $30,000. Exceptions to our minimum to finance can be made on a case by case basis. There is no maximum amount to finance. Our terms range from 7 - 25 years, with the following basic guidelines. Our terms are dependent on the amount financed. Typically, for balances less than $40,000, we can provide a maximum term of 15 years. If the balance exceeds $40,000, we can offer a maximum term of 20 years. Exceptions can be made on the term on a case by case basis. Our California Pre-Hud program, which is mobile homes built from 1970 - 1975, caps the term at 15 years. No exceptions can be made on this regardless of the balance.

Q: Is Escrow required in order to Close a Manufactured Home Loan?
A: Escrow is not required in any state, with the exception of California, where it is mandated by law. Escrow in California is handled by a third party escrow company. JCF Lending Group has friendly relationships with several escrow companies, and we will find one near you. In all other states, escrow is handled internally by our office, where we do all functions from titling the manufactured home, to cutting checks to your current lender, credit card companies, other banks, and even to you.

Q: When is a Manufactured Home Refinance Not Advisable?
A: If you are planning on selling your manufactured home in the near future, a refinance loan may not be advisable to you as there are mandatory fees involved in every transaction that may out weigh the benefits of a refinance loan. To consider the pros or cons of refinancing your manufactured home, there are two formulas to apply depending on your goal in regards to refinancing. If your goal is monthly savings, add all fees charged for the manufactured home refinance loan, and divide your monthly savings into this figure. Example: Loan origination cost $1,500, divided by say $150 per month saved. This would mean that you would have to be in the manufactured home 10 months before breaking even and actually see the savings per month. The other formula is quite simple, multiply your remaining months on your loan by your current house payment, do the same for the new loan. Now, subtract your old loan from your new loan. This will tell you your net overall savings. It is important to point out that this figure represents overall savings.

TIPS ON BUYING A USED MANUFACTURED HOME

Q: How to Determine What the Manufactured Home is Worth?
A: There are several ways to determine this. It is not an easy question, as there are many variables. We also want to point out that many people believe that because a manufactured home is listed with a realtor, that the asking price must be an accurate determination of the market value. In many cases this is false. The realtor simply listed the manufactured home with no regard to market value or to comparable manufactured home sales. Below we have outlined ways of determining the correct market value.

A1) Manufactured Home is Located in a Manufactured Home Park- When the manufactured home is located in a leased lot community, the best way to determine the true market value is to determine what other similar manufactured homes have sold for in the last Six (6) months within that park or community. Many parks and communities have extremely high location and/or community values. The selling price in these communities is dictated by supply and demand. Here are some ways of determining value. We have limited our answers to personal property situations, as we do not finance real property and/or land.

A1a) Park / Community Manager - Make an appointment with this person to discuss recent manufactured home sales within the park or community. You are looking for similar manufactured home sales, comparable to the manufactured home you wish to buy. Keep in mind that manufactured home sales within the last Six (6) months are always preferable. When looking at previous manufactured home sales, make sure the manufactured homes that you are comparing are equal in year, size and manufactured home sections. If you are buying a single wide manufactured home, for example, you would not compare double wide manufactured homes in your value determination.

A1b) Appraisal - If done by a trained manufactured home appraiser, this is your best option. The appraisal considers the quality of the manufactured home builder, year and square footage in comparison with other comparable manufactured homes within a given park or community. An appraisal does not consider upgrades or unusual value items. The appraisal should be considered the true market value and carries the most weight in value determination. You may also wish to get an independent NADA Advanced Book Value, which will indicate just the manufactured homes value, helping you determine how much you are paying for community/location value. Note, if you will be financing your manufactured home with a lender, check with that lender for their approved appraiser list.

A1c) Book Value - The N.A.D.A. Advanced Book Value is a value taken from a book. There used to be several "books" or "guides" that were used to evaluate the value of a manufactured home, but now there is just one nationally recognized, the N.A.D.A. Manufactured Housing Appraisal Guide. As N.A.D.A still prints this book, professional users are provided with advanced software that is regularly updated to reflect current value trends. The book value considers State Location, Home Life Span, Condition, Quality and items in need of repair. The book value also adds for additional items such as garages, septic tanks, decks, water wells, etc. It does not consider the value of the land or supply and demand for the manufactured home. Only the Advanced version gives a realistic picture of the manufactured homes value, not to be confused with online services that ask only a handful of questions. Note, if you will be financing your manufactured home with a lender, they may require an appraisal in combination with the Advanced Book Value Report.

A2) Manufactured Home is Located on Leased, Family or Friends Land - In this case, the land or community value can not be considered in the value determination of the manufactured home. Only the N.A.D.A. book value should be used when determining value in these situations. Because the manufactured home is not in a park or leased lot community, Fair Housing Laws are not applicable to manufactured homes in these situations. manufactured homeowners are normally not under the same protection laws afforded to manufactured homeowners in parks and communities. This should be a major consideration when determining the value and/or the amount to offer on a manufactured home under these conditions. Remember, that at any time the land owner can demand the manufactured home be moved, which will greatly affect the manufactured homes value. The current average approximate cost to tear down, move, and re-set up a single wide manufactured home is $4,000.00, that is if the manufactured home is moved 5 miles or less. When the manufactured home is a multi-section home, the average cost jumps to $10,000.00. These costs do not include the multiple fees paid to the county for trip permits, escorts, or multiple inspections that will be required before you can once again reside in the manufactured home.

A3) Buying a Manufactured Home That Will Be Moved - Only the N.A.D.A. book value should be used when determining value in these situations. If the buyer will be financially responsible for moving the manufactured home, only the Wholesale Value should be considered. The wholesale value adjusts the value for tear down, transport, lot set-up,  redelivery, re-set-up and retailer profit, where a manufactured home is purchased by a dealer and is offering the manufactured home for sale at a sales location or other site location. We must stress that the wholesale value may not reflect the true cost of transportation in your situation. Always get several bids on the complete cost of tear down, re-setup and transportation of the manufactured home prior to making a written purchase agreement on any manufactured home that will be moved at your expense. In many cases, the cost of moving a manufactured home may negate the manufactured homes value. Also keep in mind, that manufactured homes that have set in one location for a long period of time, many times, will have doors and windows that will never open or close properly in the future, once moved.

Q: How to Choose a Realtor/Dealer?
A: Depending on your area, most consumers will need to choose between using a realtor or manufactured home dealer to find the right manufactured home for them. In most States, realtors who sell manufactured homes must also be licensed dealers, but the contrast between the two could not be greater and there are advantages and disadvantages from both dealers and realtors.

Dealers - just list and sell manufactured homes, as a rule. Most consumers will be better off choosing a dealer, as the dealer should be able to show you multiple manufactured homes that meet your needs. They will also know the sources of financing available and should know valuable information about the park or community, if this is applicable. A dealer does not sell stick built homes or real property, strictly manufactured homes, normally in a park or in a leased lot community. When choosing a dealer, reputation & character are everything. Don't be afraid to ask around, make sure that you can trust this dealer with the most important purchase of your life, your home. The downside of using a dealer is that they normally only sell their own listings. Very few have access to a multiple listing service, as dealers tend to not cooperate with realtors.

Realtors - can sell both stick built homes and manufactured homes. Most realtors avoid manufactured homes, as the commission on a stick built home is much greater than that of a manufactured home. Most realtors will reluctantly show a manufactured home, normally only when pursued by a consumer on a limited budget, if this is an issue. Larger Realtor offices may have a department or person that specializes in manufactured homes, which can be viewed very positively. In many cases, the new agent or "Newbie" in the office gets the consumer looking for a manufactured home. This person knows little about real estate and even less about the special needs of a manufactured home buyer or our specialized industry. The positive feature of using a realtor is that they normally have access to a multiple listing service, allowing the consumer access to multiple listings from different offices.

Finally, experience should be your goal when choosing either a dealer or realtor, as an experienced salesperson can make the purchase a pleasure or an inexperienced salesperson could turn your purchase into a nightmare. Below are warning signs for salespeople to possibly avoid.

*Tells you that you will be charged a buyer fee for their service.
* Asks you for a pre-qualification letter before he or she will show you a manufactured home.
* States that he or she has never sold a manufactured home.
* Tells you to seek out your own financing.
* Gives you the name of a broker or lender that does not lend on manufactured homes.
* Wants to write up an offer on real property forms.
* Opens escrow or talks about the manufactured home closing in escrow. (Except California)
* Orders an appraisal with a real property appraiser.
* Orders an appraisal without having a loan approval.
* Hard to contact, consistent voice mail, always unavailable.
* Can't tell you the make, model or size of the manufactured home.
* Cannot answer simple questions regarding manufactured homes.
* You know more than they do about manufactured homes.

Q: Which Manufactured Home is Right for Me?
A: This all depends on you, and what your needs are. You want a manufactured home that is large enough to accommodate you, your family, and your possessions. If, for example, you are retired, and travel a lot, you would not want a large double or triple wide. You might opt for a single wide because of the smaller square footage and lower heating or cooling bills when you are not present. If you are a couple with plans of starting a family, or already have a family, you should choose a larger manufactured home, such as a double or triple wide, to accommodate your growing family and your need for room. Whichever the case, you want to make sure you choose a manufactured home that is structurally sound, has the amenities that you desire, a community that is attractive, and a friendly neighborhood. If you have children, you will also want to live in a school district you prefer, and is close to your job. It would not be in your best interest to find a "fixer upper", as this often leads to frustration and extensive out of pocket expenses. It is better to purchase a manufactured home, that even though it may be a little more expensive, is not in need of major repairs.

Q: How do I get the Best Deal on a Used Manufactured Home?
A: First of all, know what you can afford. A Realtor or Dealer will try to put you in a manufactured home that may be above what you want to spend monthly on housing, so they can get a higher commission. You need to stick to your guns on what you want to pay. A common mistake manufactured home buyers make is thinking the sales price in set in stone. This is not the case. The market sets the price, not the seller. For example, a seller bought their manufactured home when the market was hot for $80,000. Two years later, they think the manufactured home is worth $100,000, but because of changes in the market, it may only be worth $85,000. This is a bargaining tool for the buyer. Do not be afraid to make a low ball counter offer. The seller will come back with another counteroffer, and it goes back and forth. Do not wait until you have to move or are being transferred by your job before looking for a manufactured home. You will more than likely make a rash decision and pay more than you want to because you are in a time crunch. Another tip is the time of year you choose. Summer time is the most popular time to move, and prices may be higher during this season, because more people are looking to move, and possibly making offers on the same manufactured home you are looking at. If you wait until the winter months, you are more than likely to get a better deal on a manufactured home. If an appraisal is ordered, this is another bargaining chip. Say the sales price of a manufactured home is $60,000, and the manufactured home appraises at $55,000, you now have a foot to stand on in when making a counteroffer. No seller can dispute what is in black and white in front of them.

Q: What if there are Items in The Manufactured Home that Need to Be Repaired?
A: Many manufactured home purchase agreements are drawn up showing the manufactured home sold "as is". This means that the seller is more than likely aware of items that may be in need of repair, but has not agreed to have these things fixed. It is in your best interest to get in contact with at least 2 different contractors to get an estimate on what the repairs would cost. If the repairs are extensive, your agent or realtor should contact the listing agent to see if the seller will complete the repairs or reduce the price of the manufactured home to cover the cost of the repairs. If this is not acceptable to the seller, you should find another manufactured home to purchase. The last thing you want to do is spend money on your investment, only to have to spend countless more dollars fixing up your manufactured home to make it structurally sound and livable. There may be a manufactured home right down the street, or around the corner, in the same price range, that is not in need of repairs.

Q: I Found a Manufactured Home. What's Next?
A: You will need to make an offer on the manufactured home. If you have a real estate agent, they will assist you with this, and the offer should contain the following items: a complete legal description of the property, the amount of earnest money, your down payment and finance details, the price you are offering, your proposed closing date and move-in date, the length of time the offer is valid, and any other details of the transaction, such as if appliances are included in the sale, etc. If an appraisal/inspection will be required, always make the offer contingent on a favorable outcome of either an appraisal or inspection of the manufactured home.

You should take your time when making an offer on the manufactured home. There are several factors to consider such as what manufactured homes sell for in the area, the manufactured home's condition, how long it's been on the market, financing terms, and the seller's situation, and what you can afford. Be prepared to go back and forth between yourself and the seller on the final sales price. Once a price is agreed on, you should be prepared to put down earnest money. This shows the seller you are serious about purchasing their manufactured home. The earnest money should be between 1% - 5% of the sales price. If your offer is accepted, the earnest money will become part of your down payment or closing costs. If the final offer is rejected by the seller, the earnest money will be returned to you. If you decide to back out of the deal, you may forfeit the earnest money completely. Make sure the earnest money deposit is addressed in writing in the offer.

 DOCUMENT & LOAN LAYOUT QUESTIONS

Q: How Long Are Your Loan Approvals Good For?
A: All manufactured home loan approvals are good for 60 days from the approval date. This means that during this 60 day period, your rate and term cannot change. After the 60 days have expired, your loan will need to be re-approved and is subject to the current rates and guidelines at that time. Remember the rate & term contained in your approval are conditioned upon meeting the terms of said such approval.

Q: Do Your Manufactured Home Loans Carry Any Pre-Payment Penalties?
A: No, the manufactured home loans offered by JCF Lending Group, are free from any and all pre-payment penalties. However, items that are financed into your loan such as insurance, titling fees, escrow fees and/or any closing costs are non-refundable and paying your loan off early will not affect the cost of those items. We require all regular and/or scheduled payments to be made by automatic withdrawal. All payments that you wish directed at the principal balance will need to mailed in to avoid confusion.

Q: Why is My APR Rate Different from My Loan Rate?
A: Annual Percentage Rate (APR) is the equivalent interest rate considering all the added costs to a given loan. Depending on your State and applicable fees, this can include escrow fees, titling fees, loan fee or any other fee that is paid for up front or that is financed into your new loan. Naturally, it is a function of the loan amount, the interest rate, the total added cost, and the terms. The APR would equal the interest rate if there were no additional costs to a given loan. Here is an example: