As a dealer/installer or a home buyer, when you purchase a manufactured home direct from the factory (or from a private seller), in many cases full payment is required before the home can be loaded for trucking. This can be problematic if mortgage financing is funding the new build and those funds are only available AFTER the home is on site and ready for occupancy, as is normally the case. If the factory/seller is able to supply temporary financing or trade credit, that's great and may solve your problem. If the requirement is full payment at the factory gate, this could create a short-term cash shortage issue for the buyer until the mortgage money kicks in after trucking and setup. That problem could potentially be solved by borrowing temporarily from a family member or from a 3rd party via a "bridge loan."
A Bridge Loan is exactly as it sounds, a temporary loan to get you from one place to another, and in this case, your home from one place to another. The cost of the bridge loan is simply considered a necessary project cost.
Whoever provides the bridge loan will likely have some questions. For example, when do they get their money back! Here's a bigger list including some items that you might not have thought about:
If you can answer all these questions, then you have a good handle on all the risks that might get in the way of completing your new home project. If you require an information sheet on our bridge financing program, please contact us.
As licensed professional mortgage brokers, we know exactly what it takes to qualify you for a mortgage and we do more than just get you a great mortgage at a great rate, we will show you the way, too.