How hard is it to get a loan on a run-down trailer house if most of the value is in the land it's on? Would like live there a couple of years until I can afford to build a nice place. Would put about 40% down.
by 
Pizza Man
ANSWERS: 4
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It all depends on where you live, where you are getting the loan from and what type of credit you have. And you may need another kind of calatoral?? And it will be better if the people you obtain the loan from has some type of document about what the land you are placing the trailer on is worth.
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I've been trying to sell a house trailer on 2 double-city lots for 2 years. The adjacent neighbor finally bought it for the property and paid cash. Other prospective buyers have said that the banks aren't lending money for house trailers regardless of the land value. Many people ask about a contract purchase, I could not sell on these terms because I was seperating from a partner. A contract sale is when the seller takes your down payment and you basically rent-to-own from them directly. Maybe this option would work for you.
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This is a tough one, since so many banks have stopped lending on raw land. The value of the dubious "improvement" (the trailer) is of absolutely no consideration. It is a depreciating asset at the end of its useful life. However, you may be able to obtain a 60% LTV loan from a small local community bank, particularly if it is one with whom you maintain a relationship. Let's hope your credit is above 680 to qualify, and that you have other compensating factors to impress the banker. Good luck.
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This type of financing is called "Chattel financing" and it has pretty much dried up.
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