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At Tennessee Home Center, we’re aware of the fact that the purchase of a manufactured home very well might be the largest purchase you, or you and your family make in your entire life. We do our best to make the financing process as easy and streamlined as possible. We work with some great lenders that specialize in manufactured and modular home lending so no matter what your financial situation is Tennessee Home Center will help you achieve your dream of home ownership.
Already have land and want to hang on to your cash? The bank needs some form of collateral, our banks will let you use your land, cash, or both. If you wish to use your land as down payment, this is a great option! You will need to either own the land outright or have positive equity in your land. The bank will order an appraisal of the property and determine the fair market value (FMV). The verdict of the appraisal (value of your land) is then counted as your down payment/equity in the deal. Keep your cash and gain a home!
This type of loan is sometimes referred to as a “chattel” loan. This is where the land that the home will be on is not involved in the bank deal. This is the most common type of loan. There is no PMI (private mortgage insurance) and the bank usually wants a 5% down payment. Because the land is left out of the deal, this loan is often times a smaller total amount financed.
This type of loan is sometimes referred to as “land and home”. This loan is used to finance the land, home, and land improvements together. The bank will oftentimes want 5% down on this type of loan. The bank will need to appraise your land and then your dream home will be yours!
The answer is yes!...We definitely do VA and FHA loans! We are proud and honored that our service men and women choose to purchase a home from us, and they have earned the right to utilize a VA loan and we will help you do it! Government backed loans such as VA and FHA are a slower process, so please be patient, the banks move a bit slower for these loans. There are more requirements and guidelines involved, but it is well worth the wait! You can utilize this loan to get everything you need at once: land, home, and improvements. Government loans usually allow for a much smaller down payment, sometimes even 0% down.
The bank looks at several factors when making a credit decision. Each bank has different guidelines, requirements, and criteria that they follow. The primary things that are considered are credit score and debt to income (DTI).
Your credit score is a numerical figure that is generated to give banks an idea of your past finances. There are several different factors that go into this score such as credit utilization, credit history, payment history, types of credit used, etc. The higher that your credit score is, the better. The bank grades credit on a scale of 300-850. There are three different credit bureaus that generate a credit score and each bank views each credit bureau differently. It is helpful to be informed and have a general idea of what your credit score is.
There are several methods of calculating your DTI and each bank handles this differently. The bank looks at your total income coming in vs the total amount of debts going out. When considering your home purchase they consider the cost of land (if applicable), land improvements, home cost, taxes, and insurance. Banks are legally hindered and unable to loan you money if your DTI is too high, meaning you could not cover your current debts and your monthly home payments. Please come with a general idea of your current debts so that this can be disclosed to the bank during the financing application process, this includes things such as: student loans, child support, car payments, or even co-signing for someone else on a loan.
The early bird gets the worm, so here is how you can be prepared to help make the process a quick one…the bank will always need to verify several documents from each person on the application. If you have these documents available please go ahead and bring them in:
