Posted by Steve-WA on October 19, 2005 at 16:39:36:
the bank sees the rental income offsetting the mortgage payment, so the effect on getting another loan is minimal.
in theory.
depends on their bank(er).
Buying parents mobile home ? - Posted by Joe G
Posted by Joe G on October 18, 2005 at 21:33:32:
Hey everyone…
My parents have a mobile home in a park that I’m thinking about buying for myself.
Heres the problem… I have bad credit so its not a real possibility for me to get my own financing.
My parents know I can afford their payments and will do whatever we need to do to make this happen.
I would simply give them the money and let them just continue to make payments, but, their worried they will be limited as to what they can buy if their credit still has them as being responsible for the mobile home payments.
Is there some type of contract that would obsolve their liability without me getting my own loan? I know its possible to assume mortgages, but I know mobile homes are more like cars in most respects and less like regular home mortages.
Or if they “rent to own” it to me, will lendors hold that against them when they go to get a mortgage?
I really want to make this happen, but my parents need to be able to get a loan (without paying a higher than average interest rate)…
Anyways, any ideas you have will be apprecated!
Re: Buying parents mobile home ? - Posted by Karl (Oh)
Posted by Karl (Oh) on October 19, 2005 at 24:24:36:
A lease/option is one suggestion. Write up a lease agreement that states you’ll be making the bank payments for your parents. You could have an option to buy the home at anytime for the balance owed on the loan plus $1. If you eventually pay the loan down to zero, you buy the home for a buck. Go to ernesttew.com for some free contracts.
You’re parents should be able to go into a bank for a new loan and prove that they’re not responsible for making the payments on the home anymore by showing the bank your lease agreement.
Karl Kleiner
Re: Buying parents mobile home ? - Posted by will(wa)
Posted by will(wa) on October 18, 2005 at 22:08:49:
Hi Joe,
I have a couple of questions if you don’t mind answering.
What state do you live in?
what year is the mobile home?
is it a doublewide or singlewide?
is it paid off?
how much is the current loan balance if not paid off?
Will(wa)
Re: Buying parents mobile home ? - Posted by Joe G
Posted by Joe G on October 19, 2005 at 16:01:23:
Does a lease option actually obsolve them of the liability for the debt though?
I guess it just doesn’t make sense to me… Someone with good credit has a loan through a bank… They decide to “Sell” via a lease option to someone with bad credit… The person with bad credit doesn’t pay the loan… Wouldn’t the bank hold the original person who got the loan responsible? Or does the lease/option contract supercede that?
Thanks… Appreciate the advice 
Bad credit, fewer options - Posted by Karl (Oh)
Posted by Karl (Oh) on October 19, 2005 at 18:34:38:
Yes, your parents are still on the hook for the loan payments. The loan will stay in their name. The bank won’t even know that they’ve leased out the home, if you don’t tell them. Since you said you had bad credit, I didn’t think you would be able to go get your own loan, or assume theirs.
When you’re parents go to get a new loan, the bank will look at their monthly income and monthly debt service to determine what they can afford. Your lease payment on the home will look like income to them, offsetting the mobile home loan payment. But like Steve said, it really depends on the bank. Some banks may not like that arrangement.
I’ve done exactly this a number of times. I’ve lease/optioned a mobile home by taking over loan payments, so the seller could get a new loan to go buy a house. I showed the lease agreement to their bank, and the bank said okay.
Karl Kleiner