Mortgage Financing for Mobile Homes in BC
Mobile Homes & Mortgages in British Columbia can be a tricky thing to find. Here are some of the basics that lenders will consider:
- First thing you should check is if you have a valid electrical certificate. Valid CSA # or the updated Silver Label certifying that the electrical is in order. To learn more visited BC Safety Authority
- Mortgage Insurance is required for financing mobile homes through Banks
- Mortgage Financing is at the banks posted rate and not any of our discounted rates
- Mobile Home’s maximum effective age must be 20 years or less (economic life)
- Maximum Amortization for a mortgage on a Mobile home is 25 years for lease or rental pads and 25 years for mobiles on their own land
- Mobiles can be located on owned land or on lease lots in parks. For Mobiles on leased land the mobile must be deregistered. (Speak to your notary or lawyer to find out how to deregister your mobile home)
- If in a park, a (Non-Disturbance) or (Tri Party Agreement) must be accepted by the park owner and the lender.
- Mobile homes in parks pad rental will be included in the borrower’s GDS ratio
- Mortgages on Mobile Homes by Alternative Lenders
Private Mortgage Lenders for Mobile Homes are common due to the many factors in qualifying under the bank rules. Generally Home Equity Mortgages on Mobile Homes will want to consider the following:
- Is the mobile 20 years old or newer or substantially renovated?
- The maximum LTV Loan to Value for mobiles in a park, lease or native lease is 65% meaning you will have to have 35% down.
- Mobiles on their own land can qualify up to 75% loan to value. Some locations can be factors.
If you are considering mortgaging your mobile home give us a call first and we would be happy to serve you.