Julia and Cole are both young professionals who were looking for a place to call home that would allow them to unwind from their busy work days. They found their dream property in a rural estate sale – but there was a catch. The property they were looking at had an aging mobile home on it that would require a lot of work to update once they moved in.
Mobile and modular homes are difficult to both lend on and insure for several reasons:
- To qualify for a mortgage, the mobile home will have to be fixed to the land rather than moveable.
- If a mobile home is kept on rented land, it's considered as personal property of its owner rather than real estate.
- If you own the land where the mobile home is located, much of the value of the property is in the land rather than the structure, which means evaluating the file on different criteria.
- Wear and use over time affects the value of a mobile home differently than a traditional property.
- Updates to the mobile home (electrical, plumbing, etc) may not have been properly documented and would require additional professional inspection and review.
To make their dream home a reality, Julia and Cole had to come up with a significant down payment, which was possible through the sale of a condo unit that Julia owned in the city. In order to remove subjects on their offer to purchase the home, the Auxilium team presented a range of scenarios, from an A lender through to private financing.
Only once we had exhausted every other option did we move ahead with a private mortgage for Julia and Cole. Our in-house insurance services provided by InsureLine Auxilium also helped them to find coverage for the mobile despite the needed repairs. These solutions allowed Julia and Cole to buy their dream property, and once they've had a chance to update and renovate the mobile home we'll be able to work with them to find a mortgage with a lower interest rate that fits their changing lifestyle.
Most important, Julia and Cole are living in their perfect rural home – all in only six weeks.