Mortgages and Insurance on Mobile Homes

[invst4profit]

I am looking for some info on Mobile Home mortgages in preparation for a upcoming LTB hearing.

What I need to know is what is the criteria for providing a mortgage (in Ontario only) on such a property.

Does anyone actually do mortgages on mobiles, is there a age criteria, only if they have foundations or not at all.

I know most of my tenants finance with bank or private loans but what I am hoping is that someone will provide a mortgage if a home is maybe less than 10 years old..



Same on insurance, in prep for board hearing, do insurance companies provide a policy that covers replacement value regardless of age/condition of home insured?



Since I don't personally live in a mobile, I only own the park, in do not have first hand knowledge. This info, if it supports my arguments, could go a long way toward evicting a true low life tenant I am presently battling.

 

[Thomas Beyer]

Assuming it is not a manufactured home affixed to the land, a mobile home is just that: mobile ! Hence not classic "real" estate or more accurately called immeuvable in Quebec or Immobilien in German. An im-mobile !!



Hence, you canNOT get a classic mortgage (attached to house plus land). However, like a car, you can get loans, secured by the mobile home, with terms like car loans: shorter in duration than a mortgage (i.e. 10-15 years .. the older, the shorter the amortization), lower loan to value and higher interest rates ! It is also referred to as a "chattel mortgage".



Yes, several banks offer loans on mobile homes. Shop around, ideally via a mortgage broker !

 

[bizaro86]

I have never done this, and my understanding is that Thomas's answer is correct. However, I also found this page on the CMHC website.



http://www.cmhc-schl.gc.ca/en/corp/faq/faq_006.cfm

No, CMHC offers mortgage loan insurance products on various property types including duplexes, condominiums, owner-occupied properties, manufactured or mobile homes, properties requiring renovations and much more, including rental and nursing homes. Please check with your lender for more details.

Of course, that may only apply to mobile homes attached to a foundation, but I thought it might be a helpful reference none-the-less, especially if you're only trying to find something to demonstrate that a loan against a mobile home is theoretically possible.